SWOT Analysis of online gaming

SWOT Analysis of online gaming


SWOT Analysis is a commercial term mainly used in evaluating a venture. It is one of the strategic planning methods applied to evaluate and or assess the Strengths, Weaknesses, Opportunities, and Threats in relation to a particular business venture. Research has shown that online gambling has gained a lot of popularity with revenues from online gaming rising above $830 million in the year 1998. (Gasnier, 2008) It is also the same year that saw the introduction of online poker rooms.

By the end of the year 2001, it is estimated that the number of participants of online gaming went as high as eight million and more growth was expected although there were legislation and lawsuits challenging the same. Internet gambling is becoming one of the most lucrative and popular businesses available on the internet. Forms of online gaming include poker, casinos, sports betting, bingo, lotteries, UK National Lottery, mobile gambling, horse racing betting, in-play gambling among others. (Pride, 2007)A number of companies are utilizing this opportunity and reaping a lot of revues from the same. This essay paper will analytically look into the strengths, weaknesses, opportunities, and threats.


SWOT is an acronym used for Strength, Weaknesses, Opportunities, and Threats. A SWOT Analysis is conducted by an organization to have the predictability of hidden and obvious factors that may directly or indirectly influence the results of marketing as well as marketing with respect to the online gaming industry, Sony, Microsoft, and Electronic Arts.  While online gaming is becoming a lucrative business venture, analysis is worthy to establish the factors in SWOT acronym. (Chandler, 2011)Sony, Microsoft and Electronic arts are key companies that have the largest command in technology and electronic stuff. Online gaming has received tremendous strength from a legal authority. (Chandler].

The game production handbook, 2009) We all know that at the start, many Western countries were totally against the idea of online gambling. Even now, the subject of online gaming is still debatable with many parents restricting their children from the same due to moral issues linked. However, it was a great boost for the court to declare online gambling a legal business venture. Online gaming has of late received wide acceptance all over the world. With the world being converted into a global village, we can’t resist technological changes any longer. It shows significant strength for the wide acceptance of the idea.

The acceptance is due to the majority of users and players realizing that online gaming provides an avenue for enjoying and sharing of resources as well as fun. When people take part in playing online games which obvious involves playing with other individuals from other diverse areas of the earth, then this is great fun. There is an opportunity to know other people and their ethnicities as well as values. This may later develop a friendship.

Online games help children to learn how to multitask. It is worth noting that children who play online games have higher chances of learning how to multi-task efficiently. Needless to say, online games provide a healthy challenging exercise to the mind. (Griffin, 2007) There are so many games offered by Microsoft, Sony and Electronic Arts that major on offering a healthy challenge to the brain. The intellect of the mind therefore develops. Also, online games have by great extent increased revenues of countries.

These three companies already have great goodwill in the market. (Hörnle, 2010) Their products are widely used and this gives them strength. The three companies also enjoy strength by the fact that they are financially stable. Therefore, the provision of games will not be such a big issue as far as investment resources are concerned. By enjoying a worldwide reputation, these companies can offer their games to clients at competitive prices. Again, their products are used worldwide and therefore they will have wide access since backward compatibility is possible.

One of the greatest weaknesses in providing online games is the fact that large financial resources are required. This may halt other growth strategies in enterprises. Production and management of this venture will require a heavy capital base since factors like customer satisfaction have to be met. Security matters cannot also be overlooked. It is just recently that we had a case of a player who hacked their sites. We can not also ignore competition from other companies like Apple Inc., Samsung among others. Another big weakness of online gaming is the acquisition cost of the hardware itself and the games. Subscription could be quite expensive.

Some of the opportunities available include tapping into unexploited markets of Africa, the Middle East, and other regions. There is also an opportunity to partner with other organizations like the Hollywood studios to offer the services.

One of the biggest threats is the fact that technology keeps changing and therefore there is a need for constant change of strategies as well as technicalities. (Gainsbury, 2012) Most parents still have not accepted the idea of online games to their children. In Europe, there is some sort of antitrust. Some of these games are sophisticated which definitely affects customers negatively.


Online gaming is becoming a lucrative adventure and a big opportunity in technology, with companies like Sony, Microsoft, Electronics Art, and many others exploiting the opportunity. This essay has analyzed the various strengths, weaknesses, opportunities, and threats that always rise to a business undertaking the venture. The information is a valid and powerful resource for any organization that carries out or intents to get into that nature of business. No matter how much we carry out our analysis, we can’t find a venture without some limitations and therefore the investor will weigh the merits and the demerits available.

Works Cited

Chandler, H. M. (2009). The game production handbook. Hingham: Infinity Science Press.

Chandler, H. M. (2011). Fundamentals of game development. Sudbury: Jones and Bartlett Learning.

Gainsbury, S. (2012). Internet gambling: current research findings and implications. New York: Springer.

Gasnier, A. (2008). The patenting paradox: a game-based approach to patent management. Delft: Eburon.

Griffin, R. W. (2007). Fundamentals of management: core concepts and applications. Boston, Mass.: Publishers Group UK [distributor].

Hörnle, J. (2010). Cross-border online gambling law and policy. Cheltenham: Edward Elgar.

Pride, W. M. (2007). Foundations of marketing. Boston: Houghton Mifflin Co.


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