16 Sep 2022


Forecasting the Market Demand for Video Game Project

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Academic level: College

Paper type: Research Paper

Words: 295

Pages: 1

Downloads: 0

Statistical and regression techniques are significant in determining the reasons for changes in demand. Industrial developments and macroeconomic variables lead to changes in the market demand for products. To acquire a video games project, a sharp look at its demand is crucial for our company. Only ten percent of the U.S. households have access to video games (Pride, 2017) . Hence, the market penetration is low implying a good market before saturation. 

To effectively determine the demand for video games, children’s ages and family income are used to create categories. The upper-income households with children are effectively penetrated. Households with incomes beyond   $ 50,000 and children within the age bracket of six and fifteen years are only seventy-five percent penetrated. This implies that demand will not take long before falling. Therefore, the management should only take up the project if its payback will take a short time before the fall of demand (Feijoo & García-González, 2016) . It can be wise to abandon the project, but since the market is in need of the video games, it should be implemented. 

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Additionally, the video games project can be successful if other drivers of demand are favorable. These include the pricing of the games, the price of complementary goods like the computers, the tastes and preferences of the households, and the future price expectations. To ensure the demand for the produced video games stays upfront, we shall price them less, unlike the general market. Due to the elasticity of demand for video games, the low prices will increase demand creating a reliable market (Cochrane, 2015) . The U.S. games and companies have experienced stiff competition from Japan. It produces best sellers annually making it necessary for our company to venture into the market and cover what the local producers have not tapped. To contribute to the country’s GDP, this project should be implemented as it will create employment for the game designers. 


Cochrane, S. (2015). Managerial Economics: Theory, practice, and problems. Managerial And Decision Economics , 2 (3), 193-194. http://dx.doi.org/10.1002/mde.4090020312 

Feijoo, B. & García-González, A. (2016). The video games that entertain children: offer and demand analysis of video games among the young audience. Anàlisi , (55), 48. http://dx.doi.org/10.7238/a.v0i55.2892 

Pride, W. (2017). Foundations of business (1st ed.). New York: Cengage Learning. 

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