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Rock Star Games

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Brittany McGrady

on 5 May 2014

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Transcript of Rock Star Games

SWOT Analysis Cont...

2.
Weakneses
a. According to an online poll, their main weakness is the lack of a competitive multiplayer such as Activision’s Call of Duty FPS


Key Terms
1.
Video Game Developer
– A software developer who focuses on video game development, the process of creating a video game.

2.

RPG, Role Playing Game
– A game in which the player assumes the role of a character(s) in a fictional setting.

3.
FPS, First Person Shooter
– A video game genre that focuses on projectile weapon based combat through a first person perspective.

4.
Multiplayer Game
– A video game in which more than one person can play in the same environment at the same time.

5.
Co-op, Cooperative Gameplay
– A feature in a video game that allows players to work together as teammates against one or more in game opponents.

Mission and Goals
Dan Houser, Rockstar games creative vice president stated "It's in our DNA to avoid doing what other companies are doing"
"You have to have originality in your games; you have to have some kind of interesting message."
The point of Rockstar is to have the players feel what we are trying to do rather than compete with other companies.
Games are created to fit players needs rather than to ensure a profit
Industry Analysis
• The worldwide video game marketplace reached $93 billion in 2013, up from $79 billion in 2012.
• Driven by strong mobile gaming and video game console and software sales, the market is forecast to reach $111 billion by 2015.
• Mobile games are the fastest-growing segment of the market, with revenue set to nearly double between 2013 and 2015 from $13.2 billion to $22 billion.
• As mobile devices such as smart phones and tablets continue to grow, the mobile game category will show the biggest growth.

Competitor Analysis
Electronic Arts
– Develops, markets, publishes and distributes its own line of games.
They use vertical integration to be an all encompassing company
They produce action adventure role playing games and racing games to compete directly with Rockstar’s offerings
The produce sports games such as Madden and first person shooters such as Battlefield, genres which Rockstar has yet to produce
Naughty Dog
– Video game developer
They focus on role playing action adventure games that compete directly with Rockstar such as the Uncharted and Last of Us games.
They are the closest in sales in the genre
Though smaller in size than Rockstar, Naughty Dog, Inc. continues to grow
Activision Blizzard, Inc.
– A holding company for Activision and Blizzard Entertainment
Together, they develop and publish their own line of games
Blizzard developed action RPG’s Diablo and World of Warcraft, both competitors to Rockstar
As a developer and publisher, they are more effective than Rockstar

Company Description
Rockstar Games is a multinational video game developer.
The publisher is known for the Grand Theft Auto, Max Payne, L.A. Noire, The Warriors, Bully, Manhunt, Midnight Club, State of Emergency, and Red Dead games as well the use of open world, free roaming settings in their games.
The company is based out of New York but have offices in Japan, England, Scottland, Canada, and all over the whole United States.
As of February 2014 Rockstar Games has shipped more than 250 Million copies of their video games
The largest franchise is Grand Theft Auto which has shipped 157.5 Million copies by itself.
Core Competence


The Rockstar Advanced Game Engine
, RAGE – The game engine developed at
Rockstar San Diego
that facilitates game development across Microsoft Windows, PlayStation, Wii and Xbox consoles, this provides a realistic environments, simulates physics and offers players a unique gaming experience.


Storytelling, Story Creation and Themed In-Game Attractions
Rockstar’s writers create the distinct story lines from which their games grow.


Efficient Operations and Distribution Channels
– Rockstar Games uses Take-Two Interactive, a multinational publisher to distribute their games. Upon the release of Grand Theft Auto V, they generated more than 1 billion in sales in under 3 days in 2013.

Sustainable Competitive Advantage
Rockstar Games already has a competitive advantage in their writing of games and their long running, high selling game series’ such as Grand Theft Auto.

They will sustain this by:
• Maintaining their loyal fan base by continuing to produce sequels for their popular video game lines; Grand Theft Auto, Max Payne and Midnight Club
• Keeping game developing studios in a multitude of countries to gain cultural insight.
• Utilize the best distribution channels and software publishers such as Take-Two Interactive.
• Continue to provide outstanding customer support & post purchase support by continuing to add on expansion packs and correct glitches and bugs.


1.
Strengths
a. Recognizable name in the gamer world
b. Long standing titles such as Grand Theft Auto
c. Multinational company with offices in Japan, England, Canada and the US
SWOT Analysis
b. The second weakness gamers voiced was the lack of a cooperative game such as Electronic Arts’ Army of 2 series, Polyphony Digital’s Gran Turismo series, and Valve’s Portal series
3.
Opportunities
a. Rockstar games has the budget to develop both types of games and should move into these markets
b. Rockstar needs to attain celebrity endorsements

SWOT Analysis Cont...
Customer Analysis
Target market 18-30 yr old males
However, 45% of Rockstar's heavy gamers are between the ages of 6 and 17
Audiences that are saught after are the hardcore gamers
Have experience in the mature gaming world
Movie goers are also a target
The blockbuster film Max Payne was based off of the Rockstar video game series of the same name.
Marketing and Product Objective
Investing time and money into the product
Embrace controversy
Create plenty of anticipation
Grand Theft Auto V was awarded most anticipated game by the Spike Video Game Awards in 2012
Turn one product into multiple products
Leverage the power of your community
Fans, gamers, movie goers, and any other consumer are the companies greatest marketing asset
Marketing Strategy
Product Strategy
Rockstar designs the sort of games they would want to play, than believe people will buy them
Price Strategy
All new games, regardless of developer are prices similarly at release.
Prices of games for major platforms is typically $59.99
Prices fall based on how long the game has been on the market
Promotional Strategy
Rockstar uses celebrity voices in their games
Rockstar pays licensing fees for popular music
Rockstar uses popular media such as television, social media and viral buzz for advertisement
New Product Strategy
Co-op games
First person shooter games
More universal games
Younger children
Female players
Family oriented
Create games that require physical interaction
Xbox Connect
Playstation Move
Wii
New Price Strategy
Discounts for people who pre-order ahead of time
Buy one get one free
A point system/reward cards
Bundle Packages
Gaming consoles and games
Game themed consoles (great advertisement as well)
Once profit hits a certain amount per game, drop price
If a game reaches 100,000 units sold, reduce the price to $15
Will keep games selling after profit has been made

New Distribution Strategy
New Promotional Strategy
Rockstar will need to make their games available as portable applications
Smart phones, Ipads, Nooks, Kindles and other tablets
Lower prices will attract more customers
High availability on the go will make purchasing easier
Desired apps may translate to higher console game sales
Downloadable in game content
Add-ons for existing games
Expand gaming levels and in-game opportunities
Increase revenue
Competitor Activision earned $250M with downloadable content
Supporting
Causes & Charity
Promoting their products while supporting a cause can be an effective promotional strategy
You get the customers and the socially conscious image; customers get a product they can use and the sense of helping a cause.
One way to do this is to give a percentage of product profit to the cause or charity Rockstar has committed to helping.
Work Cited
Croal, N'Gai. "Why Rockstar Is the Leader of the Pack; the Videogame King Keeps the Hits Coming."Newsweek. N.p., 7 Nov. 2005. Web. 1 Apr. 2014.
"Grand Theft Auto V." Rockstar Games RSS. N.p., n.d. Web. 5 Apr. 2014.
Horneman, Jurie. "Activision's "Call of Duty" XP 2011 to Kick off Gamer Event." Multimedia Publisher. N.p., 1 Aug. 2011. Web. 5 Apr. 2014.
Ivan, Tom B. Digital Analogue: The Art and Science of Rockstar Games. Göttingen: Steidl, 2009. Web 4 Apr. 2014.
KESTEN, By LOU. "'GTA' Creator Rockstar Thrives by Breaking the Law." AP Online. N.p., 16 Sept. 2013. Web. 8 Apr. 2014.
McElroy, Justin. "Rockstar Controls Grand Theft Auto IV Publicity." PR Week (US). N.p., 5 May 2008. Web. 5 Apr. 2014
Ortutay, Barbara. "Video Gaming Sales up 47%." AP Worldstream. N.p., 16 May 2008. Web. 1 Apr. 2014.
Richgels, Jeff. "GRAND THEFT AUTO IV OUT TODAY.(NEWS)." The Capital Times. N.p., 29 Apr. 2008. Web. 5 Apr. 2014.
"Video-Game Revenue." Knight Ridder/Tribune Business News. N.p., 23 July 2003. Web. 1 Apr. 2014.

Threats
a. The action adventure role playing category is a saturated video game category such as Warner Bro’s Batman, Capcom’s God of War and Square Enix’s Tomb Raider
b. New entrants into the action adventure segment such as Naughty Dog and their game The Last of Us which was the fastest selling game of 2013 until Grand Theft Auto V
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