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        Electronic Toys & Games Manufacturing Industry Profile

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        Excerpt from Electronic Toys & Games Manufacturing Industry Profile

        Companies in this industry manufacture electronic toys and games, including video game consoles. Major companies include console makers Microsoft (based in the US), Nintendo (Japan), and Sony (Japan), as well as peripheral providers such as Bigben (France), Nyko (US), and Logitech (Switzerland).

        Global video game revenue, an indicator of game console demand, is forecast to exceed $200 billion by 2023, according to market research firm Newzoo, fueled by the world's largest video game markets by revenue: China, the US, and Japan. Key growth markets for console gaming include Brazil, India, and Indonesia. Almost all manufacturing of electronic toys and games takes place in countries outside the US.

        The US home video games and other electronic toys manufacturing industry, a subset of the toy manufacturing industry, includes a small number of companies with combined annual revenue of about $200 million.

        Entertainment and games software and manufacturing of personal computers (PCs) used for gaming are covered in separate industry profiles.

        COMPETITIVE LANDSCAPE

        Demand is driven by personal income and product innovation. The profitability of individual companies depends on effective marketing, competitive product design, and manufacturing efficiency. Market success drives additional revenue via royalties paid by third-party game developers. The US video game console industry is highly concentrated: the top three companies dominate.

        Electronic gaming products compete with PCs, TV, home entertainment set-top boxes, smartphones and tablets, and other forms of electronic and nonelectronic entertainment for ...

         
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