Porter's StrengthsWhen analyzing the video game industry, it is helpful to understand whether it is profitable and whether the barriers to entry are low. There are three main forces that express how difficult it is to succeed in the video game industry. The three main ones are competitive rivalry, the threat of substitute products, and the bargaining power of buyers. Rivalry among existing competitors, bargaining power of buyers, and the threat of substitute products are all extremely high. Not only do buyers have the opportunity to choose between the three main competitors, but they also have the opportunity to play games online through Facebook, Zynga, etc. On the other hand, the threat of new entrants and the bargaining power of suppliers is low. New competitors would not be able to compete with the three main companies (Nintendo, Sony and Microsoft). Additionally, all major companies have strong policies and well-written contracts in place, giving them an advantage over suppliers. The 6th complimenter in the industry. In the case of the video game industry, the power of compliments is great. This is due to the number of add-on items available for products in this industry. Driving Forces There are 5 main driving forces in the video game industry that have been responsible for the change and evolution of the industry over time. These driving forces include technological change, product innovation, changes in industry growth rate, changes in the personal computer industry, and changes in industry consumers. Industry technology is constantly evolving, producing consecutive generations of increasingly powerful hardware systems, usually at lower cost. Along with this, pr...... middle of paper ...... was locked between 18 and 30 due to the complexity of the controls and the graphical nature of their hit games. Conclusion Carol adds in chp. For Sony to remain relevant as an industry leader, the company needs to focus its strategies on more market segments. Due to the competition presented by Nintendo, Sony needs to target similar markets such as young children as well as the older generation. Sony should stay on track with the current technology it has by maintaining the high quality graphics and high technological advancements that PlayStation is known for. By leveraging motion sensor technology, Sony will be competitive enough against current major players in the industry, such as Nintendo's Wii generation console, the Wii. True to tradition, Nintendo has chosen to