1. 1.The primary revenue stream for the video game industry will come from the sale of new and used video games.
2. 2.The revenue for the video game industry is not being threatened. In an article in the New York Times titled “Video Game Industry Continues Major Growth”. The first line of the article states “the video game industry is expected to continue growing at a rapid pace for several years to come, with game related spending reaching $112 billion by 2015, according to a report issued Tuesday by Gartner, the technology research company.” (http://bits.blogs.nytimes.com/2011/07/05/video-game-industry-continues-major-growth-gartner-says/) this article was written on July 5, 2011.
3. 3.Companies such as; EA, Ubisoft, and 2K are beginning to make offshoots of their biggest franchises and making them into games for browsers and social networks to generate more revenue. Companies are starting to sell games on the App store for Macs as well.
4. 4 The current economic conditions are forcing video game companies to turn to social media and apps to generate revenue. They are now selling games on the app store for Apple and creating games for social networks like facebook. This gives a chance for people to purchase game for a couple of dollars rather than $60.
5. 5One way to maintain profitability would be to keep trying to create franchise games. Such as madden, call of duty and halo. These games generate the most profitability because they develop a huge fan base and everyone wants to buy the latest up to date version of the game series. I would also start putting some of my most popular games available for purchase on the app store for apple products at a reduced price. This would allow, like I said before for people to purchase these games, although they would be a basic version for a couple of dollars. I would also make a version on the app store that is around 10 dollars, which would give the consumer more content. I think one strategy that they should increase is more marketing on social networks such as facebook. So many kids that play video games also have facebook and the video game companies could target certain demographics when advertising on facebook. Making these games available on your android and iphone are also very important. People these days use their phones for everything so making these games available on mobile devices is important. Other than that I am not too sure what else the video game industry could do. According to Gartner, the technology research company, revenue is expected to increase at a rapid rate, so it seems like they are doing everything right. Maybe one thing they could do would be to make the games available for full download on their game console with an Internet connection. That could make more people buy the games without actually going to the store.