Eco 561 Week 6

Business Proposal

October 30, 2013

Business Proposal
The Pitch
The concept behind All Play is that people who play video games online should not have a restriction about who they can play with.   Many video game titles contain a multiplayer feature that allows players to play with other players from around the world.   Multiplayer is even the driving force behind certain game titles.   Despite the popularity and draw of multiplayer gaming, there is still no cross-platform gaming.   Cross-platform means players with one console can play online with players who own another console.   Currently players have a limitation to only playing online with other players who own the same console.   This is restricting because certain popular games are released on multiple gaming platforms.   All Play aims to change that by allowing players across all platforms to connect with one another.   Customers can purchase the software and pay either a monthly or yearly subscription fee.   Alternatively the customer can purchase the software and pay subscription fees only for certain games.   The customer will be able to purchase the necessary software as a digital download or as a physical disc that can be installed.  
The Market Structure and Elasticity
The current market structure of the game console industry is best described as an oligopoly.   The major players of the home console industry are Microsoft’s Xbox, Sony’s Playstation, and Nintendo’s Wii U.   All consoles share a similar price point depending on storage capacity and games cost approximately $60.   All Play will be a complimentary product within the oligopoly of the home console industry.   As a software product, the focus will be on monopolizing the cross-platform compatibility software market.  
Video game products are elastic.   Customers have grown accustomed to the $60 price point for new video game software.   An increase in price over the $60 mark for a video game will more than likely drive consumers...