In the article “ The New Cyber-City: The Interactive Game
Industry in the New Millennium,” written
by Stephen Kline, he explores the video game industry and the influence on the
world. The video game industry, he argues, is a combination of Fordist (large
scale production, intensive marketing) and post-Fordist (segmentation and niche
targeting by demographic markets).
Post-Fordism is described in this article as a multitude of “small
enterprises, organizing production as high-technology craft-work and forming
vibrant community networks of ...human-scale business.” The whole video game
industry, he says, has three sectors: the computer industry, media
conglomerates, and the toy industry. All of which play a key part in the
success of the gaming industry.
Major
companies that have made consoles since the early 1990s have been in fierce
competition. These companies were argued to expand the computer industry
because of “high demands for processing speed, graphics display, and networking
capacity,” (Kline). These consoles developed into high-powered machines
(rivaling personal computers). Many people predicted that the personal computer
would take over the game market, but the consoles have dominated.
The Sega Dreamcast console failed
due to Sony’s release, which demonstrates the risk of technological markets. Not
only is it the highest performing console that generates success, it is also
the accompanying games and market strategy. Developers purchase rights to
console games from console-making companies; for computers, the design makes it
pretty easy. This industry results in a very complex system with an ever-changing
amount of companies, many of whom are small development companies, where the
top developers that rise to fame in large production companies start their own.
Marketing strategy also plays a large role in the industry. Since there are so
many titles, developers need to bring attention to their specific title and so
they turn to larger companies with more capital. Their capital increases access
to the marketplace and can give access to toy deals, film, or television spin
offs. There was digital divides among demographics, for example poorer people
do not have access as those with more money, but these divides are changing.
More women are playing for example so the market is full of “distinct
post-Fordist niches,” not a homogeneous market.
He also explained the influence of
video games on the militaries worldwide. Video game companies are developing
more realistic war games every year, which help militaries with simulation and
operation planning. Military investment in the video game industry is a way to
marketize the military in a sense (by absorbing some of the cost), but it also
serves to assist the military in training and war purposes.
I find this article interesting
that success and failure of a company depends on the player’s entertainment
level and awareness of the title. Although large companies aren’t needed to
develop these games, developers turn to corporate sponsors to compete in the
market, making it a Fordist industry. I agree with Kline’s arguments in this
article because I observe the competition on television daily. More video games
are targeting specific demographics, like girls, and because the marketing is
becoming more specific, I agree it is somewhat a post-Fordist industry as well.
It is a complex system and this article was hard to understand at some points,
but it was well organized and well written.
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