Fellow classmate, Justin Chan, his blog was about the gaming-industry. Justin commented how the gaming-industry has a low entry and exit barrier because technology is common.

I don’t completely agree. Entry barrier is low, but exiting is high. Even though the technology is common, the key success in a game is the creativity, aiming at what consumers want and keeping it that way. Anyone can enter the gaming industry, but the challenge is making the game attractive and successful, and maintaining it at that state. That’s what defines the entry barrier to be so low.

Call of Duty released a number of successful games. Most recently Black Ops 2, earning $500 million in the first 24 hours, because they create what consumers want, and make new games that continue to interest gamers.

RuneScape was a very successful web browser game. In 2009, the company made an upgrade and lost millions of dollars and customers, simply because no one liked it. This is the perfect example of a company that did excellent in targeting what consumers liked but they failed at keeping up with the trends and updates. There are no factors in common technology, but I believe its purely about strategy and product.

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