Maggie SalgadoBA 3301.001

The Ouya Video Game STP

The product I was assigned was the Ouya Video Game Console. On an Ouya console,

not only can videogames be played, but games can also be created by the gamers themselves and

shared with other Ouya players. I never before heard of a gaming company allowing their

consumers to create their own games so to me this is a clever idea.

And after browsing through the website, the initial market that I believe Ouya is targeting

the 18-35, single, white, male, video gaming consumer and this is why. This product is one of a

kind and hard to imitate, creating a value for their target market. No longer does a consumer

need to go a Walmart or to the local GameStop to find a new video game to play, they can just

browse the site, upload a game to their account and play. No more hype for games that seemed

to be great for only the first few rounds and cost $40 to $60 dollars. Most of the games on Ouya

allow for “free play” until a certain level. Consumers can now play before they pay, creating a

unique product line because gamers can now pick the games that they like and want with no

buyer’s remorse.

The console and controller are quite a simple package. It consists of a small box that has

a button on top you push to turn on, no complicated wires or cables. And the controller looks

similar to any other that is currently on the market, so for someone that is an avid videogame

player; this is something familiar to them. The controller isn’t anything new they have to

become a custom to or learn how to use it. And something else I notice on the Ouya site was that

it stated that some competitor’s controllers can also be compatible to their gaming system. So

for consumers that have already purchase another controller, they can still use it with Ouya’s

console. And the colors of the console and controller are very elegant; a simple black or sliver.

Now the price for all of this, I thought was just a little bit low for everything the Ouya

offers. The current price, according to Ouya’s website, is about $99 to $129 for the console and

controller. The price for Ouya’s games is separate and based on each game’s developer. As I

saw on a competitor’s website; most other gaming systems range anywhere from $400-$500 with

the addition cost of the each game ranging from $40-to $60. And the consumer doesn’t even

have the opportunity to tryout the games before they buy it.

So the initial concern about the price is will it cover the cost of the business expenses,

such as the business products used to make the console and the controller, the time and effort of

the employees of Ouya and the developers that create the games. Will this price still make a

profit for the company? Is the company able to continue selling the console at this price and still

compete with other competitors? Pricing the Ouya gaming system at $150 to $200 would have

been a better option. The company would still offer a competitive price that allows them to

compete with other major video gaming systems in the market and create a higher profit for

themselves.

Currently, the Ouya console seems to only be available online, but I think that will soon

need to change. If Ouya wants to compete with other major competitors, like PlayStation and

Nintendo, it needs to reach the consumers through more than just the one marketing channel that

it is using. Creating a supply chain through local videogame retail stores could help Ouya reach

other potential customers and possibly other gamers that want to develop their own games. If

Ouya made the console available through stores, the time it takes to reach customers would be

shorter and the number of consoles that they would produce would increase, hopefully increasing

their profits.

One issue that could hurt Ouya is that they are a new company. As we went over in

class, the whole role of promotions is to communicate. A market has to be 1) informed about

what the product is, 2) persuaded that it is the best option, 3) reminded about the product, 4)

reassured that it is the right choice, and 5) stimulate action, whether it is purchasing the product

or looking for more information about it. When I first heard about the Ouya game console, I had

to do some research. I just assumed it was another gaming system like PlayStation or the Wii. I

didn’t know that if a gamer was really passionate about creating their own videogame, Ouya

could help them develop it and share it through their system.

A few ways Ouya could better promote their product could be through advertising or a

public relations event. The company’s founder, Julie Uhrman, stated in a video on the

kickstarter website that she wanted to get the videogames back into the living room. When I did

an internet search on the company, I didn’t see any other material sources other than Ouya’s

website, the kickerstarter site, and a YouTube ad that didn’t really help promote the company. I

couldn’t find any TV ads or event promotions they had done, so to me it seemed like only

consumers that already knew about the product with visit the site and use their gaming system.

Advertising on television would be one way of reaching the audience Ms. Uhrman wants.

Another way is by holding an exhibition or sponsoring a videogame tournament in select cities,

such as New York or Chicago. This could help with public relations and getting their company’s

name out among videogame enthusiasts in order to build some kind of brand recognitions.

Now the way Ouya is making a personal connection to consumers and game makers alike

is by catering to their wants and needs. Allowing players to tryout the games before buying them

is a good way to ensure that the players get what they want and only pay for what they want.

Another way is by helping game developers that don’t have the funds to create their own games.

Ouya is building a relationship with them that could benefit their company as future projects

arise. As you stated in our last class, sometimes it not what you know, but who you know that

makes a difference.