Structure And Ownership Of The Media Sector

The company I have chosen is Bethesda Game Studios. Bethesda have had a huge impact as a game production company for a very long time. The gaming industry has been a competitive market for a very long time with Bethesda constantly producing best-selling video games. Bethesda has been around since it was founded in 1986 by Christopher Weaver and Robert A. Altman. Bethesda owns Bethesda Game Studios, which is just one of their many subsidiaries. Bethesda is a horizontally integrated company as they own other companies in the gaming industry. Horizontal integration allows companies to expand their reach in their particular industry, it also allows them to expand to new audiences and demographics. The games that Bethesda produce are usually role-playing games based in a fantasy world. Their hit game The Elder Scrolls V: Skyrim was the third best selling game of 2011, and their newest game Fallout 4 was the third best selling game of 2015. Their fan base consists of both teens and adults alike. Bethesda allows people to not only play their games but also modify them on PC’s as they see fit. People from their community will create modifications (or “mods”) for various games Bethesda have released. Recently, for their newest game Fallout 4, they have put mods onto next generation consoles which is a big step forward and something no other company has done. Bethesda has a wide scope of competitors, almost all being high-end game producers such as Rockstar or Activision. Bethesda is constantly releasing best selling games, so their main competitors are Triple-A game companies that release games around the same time that they do. For instance, this year Bethesda released the new Doom game, shortly after Blizzard released its new hit game Overwatch. So right now it cold be argued that Bethesda’s main competitor right now is Blizzard. Bethesda’s audience is made up of almost completely gamers, their games are made for ages 16 and above, this is a god target audience since teens tend to have more time to play games. Around 2002 Bethesda Softworks and Bethesda Game Studios became separated between publisher and developer. Beginning with The Elder Scrolls IV: Oblivion, Bethesda Softworks began publishing Bethesda Game Studios games. This helps them bring more games out quicker as they have two different companies playing two major parts in the creation of a Triple-A videogame.

Companies become more powerful by buying other companies and getting a bigger workforce, this way they can create more content for their consumers to enjoy. When a company buys out, merges or joins a company it allows the companies to expand who their selling their games to. In 2010 Zenimax Media acquired Arkane Studios. In most cases, a company acquiring another company means the acquired company usually changes how they make content. In the case of  Arkane Studios, they were happy to be teamed up with Bethesda Game Studios as they make similar styled games.

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Global companies become powerful by owning most of the market for a given type of product. The problem with owning most of the market is that you would be forced to release lot of (in this case) videogames and they wouldn’t be very good quality as you’re releasing so many so quickly.




















One comment

  1. franwyllie · July 12, 2016

    You have used some terms here such as horizontal integration and have a fair knowledge of the reasons why companies would want to buy up other similar companies, however this is lacking depth and could have benefited from more examples and depth. Capped at pass due to late hand in.


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