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Porter 5 Forces Analysis Video Game Sector by Mind Map: Porter 5 Forces Analysis
Video Game Sector
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Porter 5 Forces Analysis Video Game Sector

Threat of substitute products or services

Smartphones and Tablets

HDMI Connection, Playing games on the big scream

New range of applications targeted for gamers

Risk due to similarity of price


Games offered for both platforms

Quality of graphics processing is superior than the Video Games market

Higher price product


More affordable price

Lower graphic performance

strength in the children market share

Threat of new entrants

High level of capital requirement

High entry barrier



EX: NVIDIA -Project Shield

Access to distribution

Established Brand

Brand Equity

The fact that NVIDIA is already established in the market for graphics processing helped it to get into the video game industry

Patent - Processor TEGRA 4

Sistem Android


High level ofcompatibility, PCs, Smartphones, Tablets

Bargaining power of customers

Bargaining leverage - Low/None

RFM analysis

Recency, Big Picture - The costumer are buying less smartphones and tablets, because of the release in the fourth trimester of PS4 and Xbox 720.

Frequency, Buy once in years. PS. Much of the profits come from the game selling.

Monetary Value, High

Buyer information availability - High

Bargaining power of suppliers

Low power of bargaining

Products with high added value

Established products on the market

With the high-tech industry, a large number suppliers can be part this party.

Everyone wants to be a Sony or Microsoft supplier in the video game industry.

Assured profit

Intensity of competitive rivalry


Sony vs Nintendo


Sony vs Microsoft

Competitive strategy - keep some dedicated games to the platform