The company I am going to research is Square Enix. Square Enix is a Japanese company that was originally two different companies known as Square and Enix (both also Japanese companies.). Square Enix are based in Tokyo, the main franchises they are most known for are the Final Fantasy series, the DragonQuest series, and the Kingdom Hearts series (done in collaboration with Disney).
Square Enix’s business model is based on an idea called “Polymorphic content”. Basically, this means creating a product that is to be tailored for multiple platforms. An example of this would be the “Compilation of Final Fantasy VII” project. Final Fantasy VII was first released in 1997 and is hugely popular among gamers, it’s been voted in many top ten games of all time lists, including VGCharts, and the official Game top ten poll. . Therefore Square Enix thought that they could take advantage of it’s popularity and create many different spin-offs, while following it’s Polymorphic Content business model.
This project includes: a prequel game for the mobile (Before Crisis), a sequel on the PS2 which is a first person shooter (Dirge of Cerberus), plus a mobile spin-off of Dirge of Cerberus called Dirge of Cerberus: Lost Episode, a movie sequel (Advent Children), and lastly a prequel for the PlayStation Portable called Crisis Core.
Market Penetration: As you can see, following this business model, they are entering into a large amount of already existing markets. Another example of Square Enix entering an already existing market is the release of Final Fantasy XI. They spied the potential of the MMORPG market and thus entered the market with a product.
Product Development: An example of Square Enix developing an existing product is their release of Final Fantasy XII. The Final Fantasy series is well known as a classical turn-based Japanese Role Playing Game. However, with the release of Final Fantasy XII, they tried to develop the product by taking away the turn-based mechanics from the game, and revolutionised the battle system so much that they changed the genre of the game into an action RPG.
Diversification: Square Enix’s business model is also an example of diversification. They have made a smart move, and that is instead of sticking with their most successful products (Final Fantasy, DragonQuest, and Kingdom Hearts)which are predominately on the PlayStation’s 1 and 2 , they have tried to diversify their market and have released first person shooters, movies, mobile games, and games for portable devices, all on multiple platforms.
Customers: Most of Square Enix’s products are games, therefore that means that the age range of customers they’re trying to reach is between 3 and above. Realistically though most people stop playing games regularly when they reach adulthood. So that makes their customers age range between 3 and 21. There will constantly be customers growing out of your market if you’re a video game developer, as people mature and start to like different things, one thing you can be sure on however, is that there will be new customers to replace the old ones. There is also a high likelihood that a customer that buys your game will also have bought a game from another developer, as is the popularity of video games in this day and age.