Monday 10 May 2010

Question 1 and 2

1) What is an example of a vertically integrated company?
-Rockstar are an example of a vertically integrated company, because they can control the management of their games. As they run al the distribution and marketing themselves they have full control of what goes on, and how they do it. Nintendo are also a vertically integrated company, even though their views and games are completely different. They produce everything themselves, even their own consoles, this makes sure they have lots of control and lots of money coming in.

2) What has the impact of increased internet connectivity been on the media production, distribution and marketing process?
-The internet has worked well for the video games industry, as it has enabled them to distribute their products to a much wider audience. Via sites like play.com and GAME selling games online and distributing them by post. Similar to the mail order games started in the UK. Advertising has also became easier for the companies, allowing them to add websites about games, and even twitter feeds for fictional characters, splinter cell's conviction Sam Fisher had his own feed for the game,this is called viral marketing.
Ads can also be placed on the side of websites, and trailers can be placed on popular streaming sites like youtube. Companies like Valve have set up their own product for distributing games called Steam, companies like Rockstar publish their game on steam, where customers can download the games and pay via the internet, and download the game straight to their PC, It also allows updates and DLC straight onto their game for instant access.
Other games have online enabled play, Smash Bros. Brawl has this feature which allows the player to interact and battle other players who have the game from around the world, it also allows them to share pictures, footage and maps with one another. Rockstar have an online play feature that also allows players to fight each other online, the online features also allow the player to download content for the game like the two DLC's The Lost and Dammed and The Ballad Of Gay Tony, this adds a new campaign and allows the player to play as different characters.
Onlive is a new service on the internet, as like the video games industry it is always growing.

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