Identify the MOST relevant Chapter 6 Strategy Formulation: Business Strategy concepts in the case below video gaming industry in 2000s. Answer this question by

1. Identifying the relevant concept and briefly discussing it,

2. Identifying the relevant information from the case, and

3. Linking them together in an argument, e.g., such and such concept is applied because in the case such and such is discussed and this concept involves such and such.

CASE:

Sony has worked with the company Electronic Arts

(EA) to bring online the computer game, The Sims,

which is the biggest selling game so far, with sales of 9

million since its debut in 2000 and 8 million expansion

packs, a separately sold add-on software. The game is

like a dolls house simulation of real life, which allows

players to choose jobs, buy houses, furnish them, date,

marry and have kids. Most games players are young

males, but half of the players of The Sims online are

1030-year-old girls and women.

Other companies such as Microsoft, Vivendi Universal

and Disney are involved in the same general project, to

build online theme worlds, virtual worlds, which can be

based on all sorts of sources, such as books the Harry

Potter series, films The Matrix, or television programmes.

The next project for Sony is to

develop, together with Lucas Arts entertainment, the

first online colony, based on Star Wars. The Star Wars

Galaxies game came online in December 2002 and is

anticipated to have 500,000 players within three

months. All such games have console versions. In the

future Hollywood films may well act just as trailers to

publicize online games.