1. STEEP-analysis The puzzle of the macroenvironment Group 6A Media Management 2304

2. Steep-analysis Social Technological Economic Environmental Political Finding opportunities and threats in a new environment

3. GDP-growth rate Inflation Interest rate Unemployment Purchasing power Labor cost Currency exchange rate www.netmba.com/strategy/past Main economicfactors

4. “Casual games are video games developed for the mass consumer, even those who would not normally regard themselves as a ‘gamer.’” http://archives.igda.org/casual/IGDA_Casual_Games_White_Paper_2008.pdf CasualGaming Industry

5. Fundamental indicator reveling the tendency of the economic development Defines the attractiveness of the economy GDP-growth rate describes the business cycle stage Indirect effects on casual gaming industry Most casual games are “free” and hence GDP is not directly related to casual gaming industry. However, a too low GDP indicates that people can’t purchase the casual game equipment GDP-Growth Rate

6. Casualgamingindustry = low-involvementpurchase (high involvementproduct) No biginvestments for developing the casual games  inflation/interest rate not influencial “Price wars: the price for downloadable PC games decreases, with $6.99 becoming the new industry standard” http://www.slideshare.net/alawar/the-state-of-the-casual- games-industry-in-2009-market-trends-and-opportunities Inflation/Interest Rate

7. With unemploymentspeople play more http://stuffunemployedpeoplelike.com/2009/06/02/92-playing-casual-games-until-their-hands-cramp/ Due to unemployment, peoplehavemore time to play, hence the demandshouldincrease. However, the demand for casual game equipmentshoulddecrease. Unemployment

8. Unemploymenteffects the purchasing power Severalcasual games are for free demand of basic games should not be effecteddue to lack of income Purchasing of extrasshould decrease  effecting the industry With higherpurchasing power, peoplecanspendmoremoney on casual game equipment Purchasing Power

9. Laborcoststands for a majority of total cost in casualgamingindustry Industry demandsknowledgable, specialist people Shortage of peopleavailable to work in the industry http://www.sudesca.org/green-economics/the-games-industry- casual-and-serious-reasons-for-continued-growth/ Since the casualgamingindustry is labor intensive and it requiresspecificknowledge, the industryshould be highlyeffected by the laborcost. LaborCost

10. International market Products of export Extras and equipment is payed with localcurrency and bought on local markets Currencyexchange rate effects the industry – revenues, profitability and attractiveness in general Currency exchange rate

11. ”Seeing that mostcausal games are free or inexpensive for customers to use, the economicfactorssuch as GDP and interest rates, should not have as muchimpact as in mostotherindustries. However, factorssuch as unemployment rate and laborcost are importanteconomicfactors in the casualgamingindustry” Conclusion

12. www.netmba.com/strategy/past http://archives.igda.org/casual/IGDA_Casual_Games_White_Paper_2008.pdf http://www.slideshare.net/alawar/the-state-of-the-casual-games-industry-in-2009-market-trends-and-opportunities http://stuffunemployedpeoplelike.com/2009/06/02/92-playing-casual-games-until-their-hands-cramp/ http://www.sudesca.org/green-economics/the-games-industry-casual-and-serious-reasons-for-continued-growth/ Reference

13. Thank you!