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nses from the consumers. The questionnaire was designed in such a manner so as to know all the factors that can affect a person's decision to buy a video game.

chapter 4

Findings and Analysis

The companies that are involved in the video game industry operate on a similar basis and those companies share a similar environment in which they have to carry out their business. Therefore, it can be said that a company which is making a loss in the current environment can follow another company's business model which has been proved profitable by the company. So in order to fully analyze and understand the importance of presence of certain characteristics and straits in a company's business model and therefore it can proven that in a technology-driven industry, the business structure can make a big difference and therefore can turn a company into a profitable entity.

In order to achieve the goal of the study, the author has decided to compare the business model of two companies and see whether a company's business can be adopted by another company profitably or the business strategy on one profitable company can help turn around a loss making company. The author has decided to use Electronic Arts and Take-Two for the study.

Possible Reasons for the Losses

In order to find solutions for the financial woes of the companies in the video game development industry, it is very important to know the reasons for the video game giants ending up making losses.

1. Huge Development Costs:

The companies undertake huge development costs in order to develop their games. In recent times, the games have grown bigger than movies. The magazine Rolling Stone has rightly described the Grand Theft Auto 4 as a movie. It wrote, 'This is a review of Grand Theft Auto IV the M-O-V-I-E. And I have to say, it's better than anything I've seen at the multiplex so far this summer, except maybe Iron Man.' ('Is Grand theft,' 2008). As a result immense costs are undertaken in order to make sure that the final product is as advanced as possible. The new hardware developments in the markets and the introduction of new benchmarks in the graphical content of the games, it has been possible that the gamer is given a near real life experience. Now-a-days video games are also used as simulators for training purposes for pilots and car drivers. As a result the increase in the realism in the video games has increased to a great extent and as a result the companies have to invest a lot of money in developing the games that are technologically superior in every aspect.

As the author has selected Electronic Arts and Take-Two Interactive as the subjects, the development costs that have been undertaken by the companies have to be reviewed. As a result, the development costs undertaken by both the companies in the fiscal year 2008 are listed as follows:

As a result there has been increase in the development costs of both the companies, but the development costs of EA is more than the development costs of Take-Two. As a result, it ca本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。