Gametronics PPT
Gametronics
Jan 16, 2015
Adrianne, Lauren, Alisa, Janet, Eric, Preetie
Challenges we are facing
● Rejection rates are 2 times higher
● Relationship with Sega and Nintendo is not well established
● Poor inventory management
Challenges we are facing
● Ineffective market research
● Lack of new talent (innovation)
● Declining performance
What are the solutions?
● Sales - establish strong relationships with hardware companies
● Marketing - invest in R&D
● Software development - hire new talent Plan of action
1. Sale of Library
2. Form Alliance
3. Major Investment in R&D
Sale of Library
Sale of Library
- $2,600,000 Cash + 4% Royalty (Starting $400,000 First year =
Assumption of $10M, declining each year after that)
*Assumption that Royalties are calculated based on revenue
Sale of Library
Invest in R&D
1) Invest half of the sale proceeds from the Library back into R&D 1.3M
2) Increase Research and Development budget for 20%
R&D budget for 1993 was 6.87M x 20%=1.374M
Total R&D Budget (1994)
1.3M + 6.87M + 1.374M= 9.544M (Current Operations and
Sale)
3) Based on current R&D Development Costs (1-3M)...
Total Budget
Alliance
- Strengthen distribution channels
- Development of a better relationship with purchasing agent
- Technological advantages and connections Key Success Factors
●
●
●
●
●
Innovation
Attracting and retaining talent
Improvement of distribution channels
Inventory management
Stronger relationships with Sega and
Nintendo purchasing agents
Innovation
● Need to develop a blockbuster game
● Constantly changing technology
● Need a pulse on consumers changing demands and trends
● Due to highly competitive industry and major players - create a brand
● Increase market share
Talent
●
●
●
●
Need to attract and retain top developers
Salary and incentives need to be competitive
Focus is on developing 1-2 blockbusters
Encourage innovation and creativity in the workplace ● Developing interpersonal skills with developers
Remaining money use for
Jan 16, 2015
Adrianne, Lauren, Alisa, Janet, Eric, Preetie
Challenges we are facing
● Rejection rates are 2 times higher
● Relationship with Sega and Nintendo is not well established
● Poor inventory management
Challenges we are facing
● Ineffective market research
● Lack of new talent (innovation)
● Declining performance
What are the solutions?
● Sales - establish strong relationships with hardware companies
● Marketing - invest in R&D
● Software development - hire new talent Plan of action
1. Sale of Library
2. Form Alliance
3. Major Investment in R&D
Sale of Library
Sale of Library
- $2,600,000 Cash + 4% Royalty (Starting $400,000 First year =
Assumption of $10M, declining each year after that)
*Assumption that Royalties are calculated based on revenue
Sale of Library
Invest in R&D
1) Invest half of the sale proceeds from the Library back into R&D 1.3M
2) Increase Research and Development budget for 20%
R&D budget for 1993 was 6.87M x 20%=1.374M
Total R&D Budget (1994)
1.3M + 6.87M + 1.374M= 9.544M (Current Operations and
Sale)
3) Based on current R&D Development Costs (1-3M)...
Total Budget
Alliance
- Strengthen distribution channels
- Development of a better relationship with purchasing agent
- Technological advantages and connections Key Success Factors
●
●
●
●
●
Innovation
Attracting and retaining talent
Improvement of distribution channels
Inventory management
Stronger relationships with Sega and
Nintendo purchasing agents
Innovation
● Need to develop a blockbuster game
● Constantly changing technology
● Need a pulse on consumers changing demands and trends
● Due to highly competitive industry and major players - create a brand
● Increase market share
Talent
●
●
●
●
Need to attract and retain top developers
Salary and incentives need to be competitive
Focus is on developing 1-2 blockbusters
Encourage innovation and creativity in the workplace ● Developing interpersonal skills with developers
Remaining money use for