Structure of the Software (Graphics) Industry
The software (graphics) industry is composed of a variety of firms from online gaming entities to technology-based-language learning companies. Industry constituents compete for the leisure time, attention and discretionary spending of consumers. The social gaming space, in particular, is evolving rapidly, and new entrants will inevitably drive down outsize returns over time. Performance of many participants is “hit” driven. If companies don’t deliver “hit” products to the market, operating results will suffer. Rapid technological change makes obsolescence a possibility. We don’t like the group’s structure.
For our coverage of firms in the Software (Graphics) Industry, please click here.