The gaming industry has become a huge business for the past thirty years, and companies seem to have an endless income stream. As the years have passed, the games have moved ahead with graphic design and innovation. The prices of these games and consoles increase with each new generation. The average new video game costs $ 50 today, while the average console is between $ 250 and $ 300. Why spend so much? What is the cost of creating such tools that make customers so expensive? This article explains what cost factors or factors that change the cost of manufacturing products, affecting the production of toys and consoles. This would allow demographic young people to better understand the things needed to create the game.
The most typical way to explain the cost savings to play is the five major steps in product life cycle: research and development, design, manufacturing, marketing and sales, and customer service. First, we begin with research and development. This step in product development is organized around a single question: what can we do to add value to our products? Companies have to answer this question so that not only customers buy their products again, but new customers will also buy from them. In this case, production managers and employees work in a way that gives value to the games to meet customers.
When creating console development ideas, gaming companies need to determine how to innovate their products. For example, Nintendo's latest Wii ™ Nintendo console offers innovation through their game controllers. These wireless controllers (except for the wire that connects the Nunchuck controller to the Wiimote) use motion sensors that give more sense to the game in the game. If you want to play golf, the controller moves like a golf club to hit the ball in the game. This game breaks for new players and offers better use of motion detection than competitors, Sony PlayStation 3 ™ and Microsoft Xbox 360 ™, which simply offer wireless controls with the right consoles. Innovations generally increase production costs, but companies know that if these innovations are not of interest to customers, these companies can accumulate enough of these extra costs.
After the end of the research and development phase, gaming companies are planning consoles and games. You have to pay attention to details; what kind of graphics card should be installed on the CPU (central system that is the system's "brain"), RAM (random access memory), hard drive, etc. Each new console requires more memory and faster processors to meet customer needs. The new technology for toys requires special designs for consumers; which are attractive and at the same time cost-effective. The Nintendo GameCube ™, as it includes, is a cubic shape that allows maximum internal volume (in a given size range) while using a minimal surface area and taking as few spaces as possible. With these dimensions, Nintendo has been able to put its technology in the console cover and keep costs down to a minimum. Once these costs have been determined, the company has to set up a sales price to gain profits (this is called a target calculation).
The third step of the process is the production of the product. Much money is needed to build and produce complex technologies such as video games to sell them in bulk. Costs should be allocated to employees who build toys and consoles, as well as materials for production. The company must take into account the amount of material and labor cost that the company will pay to maintain the budget. After the products are complete, they are distributed to wholesalers and retailers.
Marketing and marketing are an important part of determining video game costs. Companies need to know where to sell their goods and to target their products. Video game companies have to advertise games and consoles that are so attractive that customers will be less interested in the costs than the product offers. Video game companies have to pay retailers and wholesalers to sell their products to consumers who, in turn, give money to retailers and wholesalers and are often returned to commodity companies. After selling the products you have to keep track of your customers' satisfaction with the games.
The last step of the process is customer service. Video game companies create games that contain as little errors or bugs as possible. These companies create a customer service program for consumers if the products are defective or defective. If customers are satisfied with their game, they continue to buy more games from these companies; If any problems arise, customers will contact these companies and explain the game-related issues. Once companies collect this information, they can use them as research and develop newer models to create a new cycle of games.
As you can see from a product's life cycle, video game companies need to spend a lot of money at different costs to create products that customers will be happy with. Considering research and development costs, design costs, materials and labor, as well as many other cost drivers, it is clear that the creation of games and consoles is not as cheap as it could be. The next time you play a video game, you should be grateful that there are people who work hard and spend a lot of money on an enterprise that has been made to entertain the liked people.
Source by sbobet