Financial analysis Essay Example for Free

Financial analysis Essay The analytical audit of the company’s capital structures of the two companies shows that shows Arizon is highly geared as compared to AT T. Gearing AT T is 43. 3% for long term debt and 51. 76% for total equity which is not very high. In case of Arizon, the ratio is very high at 59% for long-term debt to equity while total debt to equity is 74. 91%. The Verizon case indicates that the firm does not have sufficient and steady internal financial resources to finance its assets. These get depleted compelling management to use external financial instruments. This usage of external sources to finance its assets increase chances of the company suffering financial risk that may lead to bankruptcy after technical default. The audit of inventory ratio of the two companies supplied reveals a AT $ T does not have stock while verizon has. This may be that AT T is a service sector or in the business of manufacture at order or operate Just In Time method of stock refurbishing. While Arizona has inventory which is increasing gradually except in year 2004 when it down from 1. 50% in year 2003. we are not supplied with income statement to be able to determine the firms’ efficiency in utilizing its resources (inventory) to generate sales is. The close analysis of the two companies ratios provided indicates that AT $ T payable account that fluctuates from time to time. While Arizona have payables with down ward trend. This indicates that Arizona is managing her trade creditors well as compared to AT T. if payables are not well managed may cause financial stress to the company. The working capital of the Verizona contains a significant proportion of cash fluctuating from time to time. In case of AT T it is insignificant and it is in the down ward trend. The firms cannot therefore, meet its obligating with the most liquid resources. Additionally, there are no marketable securities that can be easily converted into cash when a financial need arises. What this implies is that the firm may find it difficult to meet its short term maturing financial obligations as and when they fall due for payment. The same conclusion about financial position can be made using both the acid test and cash ratios. From the ratios, the firm’s ability to meet its financial obligations from the liquid assets is also questionable. REFERENCES Luecke R (2002) Finance for Managers; Harvard Business School Lindsay R. (1967) Financial Management, An Analytical Approach; R. D Irwin, 1967

Developmental Delays and Trauma Essay Example for Free

Developmental Delays and Trauma Essay Developmental delays is when your child does not reach their developmental milestones at the projected times. It is an ongoing major or minor delay in the course of development. Developmental delays can have many different causes. There are many types of Developmental delays in children; they include problems with language or speech, vision, movement (motor skills), social, emotional and cognitive skills (van der Kolk, 1995). Developmental delays are easily distinguished if you pay close attention to the development and milestone periods contained by children; for example if you notice a child having a low attention span, they can’t stay still, they’re highly active and energetic all the time, that’s perhaps due to attention-deficit hyperactivity disorder, known as ADHD. There are so many different things that can cause developmental delays and children aren’t always born with developmental delays. Although, developmental delays can be genetic or born with, there are times when trauma at different ages can cause developmental delays such as a child being abused and suffering brain trauma, concussion, which could cause memory lost. Or there could be an accident and a child or adult undergo serious injuries to the spine, eyes, etc. Spinal injuries can be of damage to you motor skills. Spinal injuries or brain injuries if serious can lead to you basically having to start over as if you were a baby learning to walk, read, jump, or talk. The Shaken baby syndrome also can be a trauma that can cause brain injuries. There are numerous of things that have major components to play in developmental delays. Trauma definitely plays a one of those major parts in developmental delays. There are a number of Trauma’s that can cause development delays. It doesn’t always have to be abuse or accidents. Trauma can be caused by divorce, neglect, bullying, sports injuries, or even bad relationship breaks up. These types of trauma are called psychological trauma. Psychological  traumas effects are mostly emotional and it isn’t always permanent. Psychological trauma causes anger, irritability; mood swings, guilt, hopeless, anxiety, withdrawing, and disconnected to name a few. For divorce, Feldman says (2011) ch ildren and adults may experience depression, and disturbances and phobias and these things last from 6 months up until 2 years. Feldman states children whose parents are divorcing blames themselves for the breakup. He also states, evidence shows that twice as many children of divorced parents enter psychological counseling (Feldman, 2011). Children under the age 18 suffer 40% more anxiety as a result of divorce (van der Kolk, 1995). About 10-15 percent of students are bullied one time or the other (Feldman, 2011) and almost 85% of girls and 80% of boys are being bullied (Feldman, 2011). Those who are bullied lack social skills, cry easy (Feldman, 2011), and they experience depression, stress, anger, etc. Prayer and meditation help brain activity. Mediation to the mind is like an aerobic exercise to the body. Studies have also shown that meditation promotes mindfulness, decreased stress, insomnia, illnesses, depression, anxiety and panic. Spiritual connection brings comfort and healing to trauma. Researchers are learning the parts of the brain that are responsible for the spiritual thoughts, prayer and meditation. In one of our presentations his week, Dr. Jeanne Brooks stated that we have a spir itual part in our brain (2014). There are good and bad parts to everyone, I believe the good part is the spiritual part in everyone. For example, we’ve all seen cartoons in which there was a devil on one shoulder and an angel on the other. The shoulder with the angel is the part of us, the part of our brain or conscious that’s spiritual. References Brooks, Jeanne Dr. â€Å"Divorce and Stress† video presentation. LUO (2014) Feldman, R.S. (2014). Development across the Life Span (7th edition) Namka,, L. (2001). Children who are traumatized by bullying. alk, Trust and Feel Therapeutics., p. 18. Van Der Kolk, an der Kolk, B. (1995). developmental trauma disorder : Towards a rational diagnosis for children with complex trauma histories.

Postmodernism and Hyper-Reality in Architecture

Postmodernism and Hyper-Reality in Architecture Introduction This essay will address architecture’s position in a consumer society. Consumer society can be described as the outcome of modernism where consuming material goods is the paramount feature of its balance and values. It is the result of the escalation in manufacturing and rapid industrial developments. It is also the outcome of the immense pace of diversification and growth of culture, creativity, technology and urbanism as a way of life. I will use the concepts of semiotic philosopher Jean Baudrillard’s as a basis in understanding the implications of this culture on the built environment, urban design and technology. I will also examine the desire for fantasy realms that mirror reality by examining Baudrillard’s three orders of simulacra and the â€Å"hyperreal†. To understand the expression of this phenomenon in our consumerist culture I have chosen to examine its manifestation in the urban context of Montecasiono and also virtual environment of Second Li fe. My aim is to better understand the architects’ position in this current culture and what it could mean for the future of architecture. Postmodernity and Hyper-reality The postmodern condition does not simply replace modernity but it rather opens up a new and complex layer of meaning of the modern by emphasizing its paradoxical aspects. Modernity has become deeply rooted in contemporary societies and thus it is almost impossible to find a condition where it has had no influence. Post-modernity by default cannot be separated from modernity as emancipation and liberation are inherent to the modern. In the post-modern era the electronic picture is the predominant force defining its figurative character. It is saturated with pictures in the degree which was not observed in history. (Asanowicz, 2014) To understand some of the complexities of our image driven culture I will first be exploring the writings of Jean Baudrillard. According to â€Å"Simulacra and Simulation† (Baudrillard, 1994) in our post-modern society, â€Å"It is no longer a question of imitation, nor duplication, nor even parody. It is a question of substituting the signs of the real for the real†. Baudrillard suggests that postmodern culture is not merely artificial, because the notion of artificiality still involves some sense of reality against which to identify it. What he conveys is that we cannot recognize the distinction between artifice and nature. Baudrillard then argues that there are three orders of simulacra. Simulacra (Simulacres in French means: stereotype, a pseudo-thing, an empty form, a blank form) is one of the key concepts of postmodern aesthetics. (Asanowicz, 2014). The first order of simulacra is related to the pre-modern period where the image is a clear imitation of the real. Baudrillard associates the second order of simulacra with the industrial revolution of the nineteenth century where mass product ion and the increase of copies break down the differences between the representation and the image. The third order of simulacra is specifically associated with the postmodern age. It suggests that the representation precedes and determines the real. The distinction between reality and its representation is has disappeared and there is only the simulacrum. Baudrillard defined this distortion of the lines between the original and its copy as the ‘hyperreal’ (Baudrillard, 1994). Not only does the simulacrum simulate the original but the simulacrum of truth is truer than true and thus the hyperreal is realer than real. (Horrocks Jevtic, 1999) This kind of simulated image is all around us, nature reserves are constructed to disguise the absence the natural environment in urban areas. Reallity TV programs are edited to romanticize the mundane. Baudrillard uses the example of Disneyland, â€Å"Disneyland is presented as imaginary in order to make us believe that the rest is real, whereas all of Los Angeles and the America that surrounds it are no longer real, but belong to the hyperreal order and to the order of simulation. It is no longer a question of a false representation of reality (ideology) but of concealing the fact that the real is no longer real, and thus of saving the reality principle.† (Baudrillard, 1994). To relate this theory to a South African context I will use the example of Montesasino. While the simulated environment is patently false, guests at Montecasino buy into the â€Å"reality† of fantasy because society will continually absorb simulacra and its preference for it over reality. Offerin g a surplus of services and entertainment options in a Tuscan themed environment, Montecasino disorientates and mesmerises its guests in a world of fantasy where spending money enhances participation in, and enjoyment of the retail and leisure experience. Baudrillard comments on the blurred distinctions between culture, consumerism and identity: â€Å"Work, leisure, nature and culture, all previously dispersed, separate, and all more or less irreducible activities that produced anxiety and complexity in our real life, and in our ‘anarchic and archaic’ cities, have finally become mixed, massaged, climate controlled and domesticated into the simple activity of perpetual shopping. All these activities have finally become desexed into a single hermaphroditic ambience of style† (Baudrillard, 2001). Another example of hyperreality is that of Multià ¢Ã¢â€š ¬Ã‚ User Virtual Environments. This has fascinated me since I engaged my first multi-player role-playing computer game and recognized the addictive qualities it stirred. Today these virtual environments are much more sophisticated with virtual worlds like World of Warcraft and Second Life simulating not only of our physical world but also of our social, political and economic condition. Second Life has an active socialist party, an opposing Marxist party and even an anarchist group. Prostitution, gambling and consumerism are central to the simulation. Users of these environments create avatars which they define as the most accurate reflection of theirrealself. Aside from hyperreality, many of the concepts Baudrillard postulates in Simulacra and Simulation are present. It is a semiological perfect world, where the users are deprived of the ability to move, eat and drink. The avatars have nothing else to consume but â€Å"sign s† of the real. Avatars can rent prostitutes to have sex which is devoid of human contact or experience consequently consuming the â€Å"sign† of having sex. The avatars buy expensive virtual clothes to express the distinction against the avatars wearing free clothes. No actual clothes have changed hands, but people spend real that they have actually earned to consume â€Å"signs† of goods. From a modernist this would seem irrational but Baudrillards states that, â€Å"Nothing resembles itself, and holographic reproduction, like all fantasies of the exact synthesis or resurrection of the real (this also goes for scientific experimentation), is already no longer real, is already hyperreal† (Baudrillard, 1994) , therefore it could be argued that there is no difference in consuming something â€Å"real† or a â€Å"sign of the real†. The newest phase of consumer society is accordingly concerned with the effect of digital consumption. This is intensified by globalisation, new information technologies and real-time communication. In the next section I will discuss the implications of society’s preoccupation with consumption and hyperreality on Architecture. Post-Modern Architecture in a consumer society Frederic Jameson suggests that Postmodernism replicates or reproduces and reinforces the logic of consumer capitalism. Thus when we study a consumer society we should focus on the seductive and alluring as this is inherit to the consumer lifestyle. In architecture terms such as image, ambience and enchantment of appearance are more important than modern notions of individualism, rationalism, naturalism and functionalism (Jameson, 2002). Few contemporary architects have consciously thought of their works with consideration to our image driven culture. In â€Å"Visions’ Unfolding: Architecture in the Age of Electronical Media†, Peter Eisenman postulates that by using computer programs which randomly fold surfaces and connect the building and landscape into one continuous whole, the architecture does not surrender to any particular explanation, but continuously disrupts what is defined as architecture (Eisenman, 1999). This does address the idea of surface being the most important aspect of design but the problem is that the works is possibly not seductive enough, rather the work is merely fascinating. On the other hand the work of Jean Nouvel is shrouded in the enchantment of appearance. In Jean Nouvel in Conversation: Tomorrow Can Take Care of Itself, he says that â€Å"image is the matter of architecture and thus the future of architecture is not architectural in the tectonic senseâ€Å". Nouvel emphasises that his architecture is not composed of space but of communicative surfaces, which he calls interfaces. He is not interested in details but only in images. Koolhaas and Tschumi are two other architects that have based their works on a conscious study of atmosphere rather than functions or meanings in architecture. Lastly one cannot forget to mention Bernard Tshumi. After the vertical, modern, in La Villette we have the horizontal, minimal, conceptual and postmodern hyperrealism. The â€Å"cinematic† adaptations in the architecture enable â€Å"events† and are said to provide new freedom for the visitor when choosing routes and viewpoints. Lastly the famous â€Å"congestion† in Koolhaas’ works can be recognised as an atmospheric effect created by â€Å"programming†. Koolhaas tries to create architecture congested with the masses in diverse actions. These actions have typically not been assigned a specific place. Rational individualism must be abandoned when interpreting mass society. Conclusion In its most recent forms, architecture is already becoming transparent, mobile, flexible and interactive. It almost tries to disappear in order to let a hypothetical mass creativity show through. It replaces the immaterial with floating rules of the game, a screen of deconstruction which leaves the subjects quite free to invent their own game rules. Besides, architecture is not the only thing to give way to this interactive utopia of exchange and playful recreation: all art, politics and virtual technology is going in this direction. These tendencies manifest themselves in contemporary architecture in the new possibilities for pluralism, â€Å"open† architecture, the flexible interrelationship between producers and consumers, interactivity, and â€Å"the innovative consumers†. Moralism against consumer society and commercial architecture does not work because it is characteristic of consumer society itself that it spreads moralities concerning how people should live and which kind of buildings they should have. These moralities concerning consumers are disguised in the form of â€Å"choices†. Neither building without architects nor pragmatist architecture can make the position of architects better in society, because these phenomena are already included in the mythologies of consumer society. As concerns the relevance of Baudrillard’s theory in architecture, it has become apparent through my theoretical work that this makes impossible such traditional architectural concepts in general as creativity, the fulfilling of needs and functionality. Architects can only speed up or slow down interpersonal socio-economic processes and in this way increase social reciprocity and cohesion. According to Baudrillard’s analysis of the present socio-economic patterns in society, it has become almost impossible to make truly seductive and reciprocal architecture. Baudrillard’s theory does not leave very much for architects to lean on, up to the question of asking whether architecture can at all be designed under Baudrillard’s terms, however believable he is in pointing out the crucial problematics of culture in consumer society. Source List HILDE HEYNEN, 2000, Architecture and Modernity: A Critique, Massachusetts, MIT Press, 8-24 JEAN BAUDRILLARD, 1994. The precession of simulacra, Ann Arbor, University of Michigan Press, 1-42. JEAN BAUDRILLARD, 1982, Modernità ©,† in La modernità © ou l’esprit du temps, Biennale de Paris, Section Architecture, Paris, L’Equerre, 27-28. PETER EISENMAN, 1994, Visions’ Unfolding: Architecture in the Age of Electronical Media, Michigan, A+U Publishers, 2-5. REM KOOLHAAS SANFORD KWINTER, 1996, Conversations with Students, New York, Princeton Architect ural Press, p 5-6.

Home Theater :: Television Media Entertainment Technology Essays

Home Theater What is a home theater? There are three main components of a home theater system, which are a video display, a source, and sound systems. A basic home theater has a television (at least 27†), a good DVD player, and a surround sound system with at least 4 speakers. Today, we can benefit from recent breakthroughs in electronic such as progressive scan DVD players, flat panel TV and Dolby Digital surround sound. And also the packaged systems make assembling home theater easier than you can imagine. Video Display The video display is the most important component of your home theater. If the picture doesn't look good or isn't big enough, it will lower the impact of the movie considerably. The display is also probably the most expensive piece of a home theater, generally covering half of the total value of the system. There are so many types of displays but the ones to look at are traditional tube TVs for the lower end systems, rear projection TVs for mid range systems and front projection systems for high end system. There are several things you need to look to buy a TV: 1. Fit in the room Screen size is the most important factor in choosing a TV because you'll still want the most immense pictures you can get, which generally means you want to sit 1.5 times the screen's diagonal measurement away from a wide-screen HDTV. For example, a 42-inch HDTV should be placed at least 63 inches from the couch. You need to consider viewing distance too in order to get full performance of your television. 2.Size and display type Most sets up to 40 inches diagonally are direct view, meaning they use the common glass to display the image. Direct-view TVs remain the most popular thanks to their smaller sizes but also because they generally provide a brighter picture with a wider viewing angle than larger rear-projection TVs. The main advantage of a rear-projection set is size because they range between 40 and 82 inches diagonally. 3. Choosing Aspect Ratio If you watch mostly television, like news and sports, you are better off with conventional 4:3 aspect ratio, but if you watch mostly movies, you are better off with wide screen 16:9 aspect ratio. But, it always depends on what you watch and what you need the most. Wide-screen sets also let you stretch the image horizontally to eliminate the window-box bars or otherwise broaden or crop the picture to fill the wide screen.

Female Submission in Time of the Temptress :: Temptress Essays

Female Submission in Time of the Temptress      Ã‚  Ã‚   From the onset, the underlying theme in Violet Winspear's romance novel, Time of the Temptress, is female submission and powerlessness, especially in the sexual tension between Eve Tarrant and Wade O'Mara. Although no explicit sexual relations are allowed in the line of "Harlequin Presents..." romances, the overall tone and interpersonal dynamics of the novel infer a rape motif. Eve is completely at the mercy of Wade to save her from the jungle and she yearns to express her gratitude in a sexual manner, but contrary to the original biblical outcome, this Eve has no power over her Adam.    The first step to conceive a sexually submissive woman is to equate female powerlessness with normality in her mind. To simplify the procedure, Winspear has bred Eve with that mindset. Eve believes men and woman have always had "functions in life" --"very dissimilar" ones which "accounted for the fact that men had aggressive ways to which women submit either willingly or unwillingly." As long as Eve retains those lessons, Wade has no qualms about aiding her escape from the jungle. Wade quickly informs Eve that she must adopt the frame of mind of an Indian squaw because "Squaws are humble and obedient creatures." Simone de Beauvoir, while discussing the theory of a superior "One" and a submissive "Other," explains that the "Other . . . must be submissive enough to accept . . . [an] alien point of view," the view of the superior "One" (244). Eve readily accepts her role as the oppressed and finds nothing odd about the unspoken caste system.    Thus we come to the second step, passive-aggressive behavior: degrade her and then apologize; or repeatedly remind her that she failed, but then reassure her it's resolved and see if she agrees with your reasoning. After Eve takes a dip in the river while Wade sleeps and monkeys steal her clothes, Wade screams at her, "dammit, Eve, we'll lose about an hour of our trek because of your female irresponsibility!" (64). While looking for her clothes, Wade also loses his compass, doing what a "raw recruit would have avoided" (74). Of course this also is all Eve's fault and she is reminded of it repeatedly throughout their jungle trek.

The Drive Towards Insanity Essay -- Character Analysis

The descent into madness is never a pretty road to travel. The journey involves multiple paths which are staggered into twists, turns, a fork in the road, and sometimes a glimmer of hope before reaching complete insanity. Edgar Allan Poe’s â€Å"The Black Cat† is one such story of a man who has stepped fully into the realm of madness. The end result of the narrator’s actions due to his mental state involve the maltreatment of his beloved pets, the hanging of his prized cat, and the eventual murder of his caring wife. The protagonist begins the tale by reassuring the recipient of the letter that he is perfectly sane, and that the entire ordeal was not a dream by any means. Many figures in history and in fiction have stated the same claim while performing evil acts. Christopher Nolan’s â€Å"The Dark Knight† shows one such character the Joker, played by Heath Ledger, who also claims to be perfectly sane while performing heinous crimes. He openly murde rs innocent civilians, causes destructive-mayhem, and openly tries to convert other characters into his cult of madness while believing himself to be fully sane. The Joker explains to Batman that â€Å"madness, as you know, is like gravity. All it takes is a little push† (Ledger). Poe uses carefully chosen language, flawless imagery, and gothic characteristics in â€Å"The Black Cat† to show that beneath every individual the drive toward insanity can explode into a reality. Poe masterfully uses carefully chosen language to make the narrator seem like a regular human being with some destructive tendencies. He playfully suggests that each individual â€Å"himself [committed] a vile or silly action, for no reason than because he knows he should not? Have we not a perpetual inclination [†¦] to violate that which i... ...985. Print Foerster, Norman. American Criticism: A Study in Literary Theory from Poe to the Present. New York: Russell & Russell, 1962. Print Ledger, Heath, perf. The Dark Knight. Warner Brothers Pictures, 2008. Film. Magistrale, Tony. Student Companion to Edgar Allen Poe. Westport: Greenwood Press, 2001. Print. Ruiz, Don Miguel, and Janet Mills. The Voice of Knowledge. San Rafael: Amber-Allen Publishing, 2004. Print. Oliver Jr., Lawrence J. "Kinesthetic Imagery And Helplessness In Three Poe Tales." Studies In Short Fiction 20.2/3 (1983): 73. Academic Search Premier. Web. 15 Apr. 2012. "Pluto, In Greek Religion And Mythology." Columbia Electronic Encyclopedia, 6Th Edition (2011): 1. Academic Search Premier. Web. 15 Apr. 2012. Turvey, Malcolm. "Vertov: Between The Organism And The Machine." October 121 (2007): 5-18. Academic Search Premier. Web. 16 Apr. 2012.

Video game

The rise of personal computers in the mid 1980s spurred interest in computer games. This caused a crash in home Video game market. Interest in Video games was rekindled when a number of different companies developed hardware consoles that provided graphics superior to the capabilities of computer games. By 1990, the Nintendo Entertainment System dominated the product category. Sega surpassed Nintendo when it introduced its Genesis System. By 1993, Sega commanded almost 60 per cent of Video game market and was one of the most recognized brand names among the children. Sega’s success was short lived. In 1995, Saturn (a division of General Motors) launched a new 32-bit system. The product was a miserable failure for a number of reasons. Sega was the primary software developer for Saturn and it did not support efforts by outside game developers to design compatible games. In addition, Sega’s games were often delivered quite late to retailers. Finally, the price of the Saturn system was greater than other comparable game consoles. This situation of Saturn’s misstep benefited Nintendo and Sony greatly. Sony’s Play Station was unveiled in 1994 and was available in 70 million homes worldwide by the end of 1999. Its â€Å"Open design† encouraged the efforts of o utside developers, resulting in almost 3,000 different games that were compatible with the PlayStation. It too featured 32-bit graphics that appealed to older audience. As a result, at one time, more than 30 per cent of PlayStation owners were over 30 years old. Nintendo 64 was introduced in 1996 and had eye-popping 64-bit graphics and entered in more than 28 million homes by 1999. Its primary users were between the age of 6 and 13 as a result of Nintendo’s efforts to limit the amount of violent and adult-oriented material featured on games that can be played on its systems. Because the company exercised considerable control over software development, Nintendo 64 had only one-tenth the number of compatible games as Sony’s PlayStation did. By 1999, Sony had captured 56 per cent of the video game market, followed by Nintendo with 42 per cent. Sega’s share had fallen to a low of 1%. Hence, Sega had two options, either to concede defeat or introduce an innovative video machine that would bring in huge sales. And Sega had to do so before either Nintendo or Sony could bring their next-generation console to market. The Sega Dreamcast arrived in stores in September 1999 with an initial price tag of $199. Anxious gamers placed 300,000 advance orders, and initial sales were quite encouraging. A total of 1. 5 million Dreamcast machines were bought within the first four months, and initial reviews were positive. The 128-bit system was capable of generating 3-D visuals, and 40 different games were available within three months of Dream cast’s introduction. By the end of the year, Sega had captured a market share to 15 per cent. But the Dreamcast could not sustain its momentum. Although its game capabilities were impressive, the system did not deliver all the functionality Sega had promised. A 56K modem (which used a home phone line) and a Web browser were meant to allow access to the Internet so that gamers could play each other online, surf the Web, and visit the Dreamcast Network for product information and playing tips. Unfortunately, these features either were not immediately available or were disappointing in their execution. Sega was not the only one in having the strategy of adding functionality beyond games. Sony and Nintendo followed the same approach for their machines introduced in 1999. Both Nintendo’s Neptune and Sony’s PlayStation 2 (PS2) were built on a DVD platform and featured a 128-bit processor. Analysts applauded the move to DVD because it is less expensive to produce and allows more storage than CDs. It also gives buyers the ability to use the machine as CD music player and DVD movie player. As Sony marketing director commented, â€Å"The full entertainment offering from Pl ay Station 2 definitely appeals to a much broader audience. I have friends in their 30s who bought it not only because it’s a gaming system for their kids, but also a DVD for them. † In addition, PlayStation 2 is able to play games developed for its earlier model that was CD-based. This gives the PS2 an enormous advantage in the number of compatible game titles that were immediately available to gamers. Further enhancing the PS2’s appeal is its high-speed modem and allows the user’s easy access to the Internet through digital cable as well as over telephone lines. This gives Sony the ability to distribute movies, music, and games directly to PS2 consoles. We are positioning this as an all-round entertainment player,† commented Ken Kutaragi, the head of Sony Computer Entertainment. However, some prospective customers were put off by the console’s initial price of $360. Shortly after the introduction of Neptune, Nintendo changed its strategies and announced the impending release of its newest game console, The GameCube. However, unlike the Neptune, the GameCube would not run on a DVD platform and also would not initially offer any online capabilities. It would be more attractively priced at $199. A marketing vice president for Nintendo explained the company’s change in direction, â€Å"We are the only com petitor whose business is video games. We want to create the best gaming system. † Nintendo also made the GameCube friendly for outside developers and started adding games that included sports titles to attract an older audience. Best known for its extra ordinary successes with games aimed at the younger set, such as Donkey Kong, Super Mario Bros, and Pokemon, Nintendo sought to attract older users, especially because the average video game player is 28. Youthful Nintendo users were particularly pleased to hear that they could use their handheld Game Boy Advance systems as controllers for the GameCube. Nintendo scrambled to ensure there would be an adequate supply of Game Cubes on the date in November 2001, when they were scheduled to be available to customers. It also budgeted $450 million to market its new product, as it anticipated stiff competition during the holiday shopping season. With more than 20 million PlayStation 2 sold worldwide, the GameCube as a new entry in the video game market would make the battle for market share even more intense. For almost a decade, the video game industry had only Sega, Nintendo, and Sony; just three players. Because of strong brand loyalty and high product development costs, newcomers faced a daunting task in entering this race and being competitive. In November 2001, Microsoft began selling its new Xbox, just three days before the GameCube made its debut. Some observers felt the Xbox was aimed to rival PlayStation 2, which has similar functions that rival Microsoft’s Web TV system and even some lower level PCs. Like the Sony’s PlayStation 2, Xbox was also built using a DVD platform, but it used an Intel processor in its construction. This open design allowed Microsoft to develop the Xbox in just two years, and gave developers the option of using standard PC tool for creating compatible games. In addition, Microsoft also sought the advice of successful game developers and even incorporated some of their feedback into the design of the console and its controllers. As a result of developers’ efforts, Microsoft had about 20 games ready when the Xbox became available. By contrast, the GameCube had only eight games available. Microsoft online strategy was another feature that differentiated of the Xbox from the GameCube. Whereas Nintendo had no immediate plans for Web-based play, the Xbox came equipped with an Ethernet port for broadband access to Internet. Microsoft also announced its own Web-based network on which gamers can come together for online head-to head play and for organised online matches and tournaments. Subscribers to this service were to pay a small monthly fee and must have high-speed access to the Internet. This is a potential drawback considering that a very low percentage of households world over currently have broadband connections. By contrast Sony promoted an open network, which allows software developers to manage their own games, including associated fees charged to users. However, interested players must purchase a network adapter for an additional $39. 99. Although game companies are not keen on the prospect of submitting to the control of a Microsoft-controlled network, it would require a significant investment for them to manage their own service on the Sony-based network. Initially the price of Microsoft’s X box was $299. Prior to the introduction of Xbox, in a competitive move Sony dropped the price of the PlayStation 2 to $299. Nintendo’s GameCube already enjoyed a significant price advantage, as it was selling for $100 less than either Microsoft or Sony products. Gamers eagerly snapped up the new consoles and made 2001 the best year ever for video game sales. For the first time, consumers spent $9. 4 billion on video game equipment, which was more than they did at the box office. By the end of 2001 holiday season, 6. million PlayStation 2 consoles had been sold in North America alone, followed by 1. 5 million Xbox units and 1. 2 million Game Cubes. What ensued was an all out price war. This started when Sony decided to put even more pressure on the Microsoft’s Xbox by cutting the PlayStation 2 price to $199. Microsoft quickly matched that price. Wanting to maintain its low-price status, Nintendo in turn responded by reducing the price of its the GameCube by $50, to $149. By mid 2002, Microsoft Xbox had sold between 3. 5 and 4 million units worldwide. However, Nintendo had surpassed Xbox sales by selling 4. million Game Cubes. Sony had the benefit of healthy head start, and had shipped 32 million PlayStation 2s. However, seven years after the introduction of original PlayStation, it was being sold in retail outlets for a mere $49. It had a significant lead in terms of numbers of units in homes around the world with a 43 per cent share. Nintendo 64 was second with 30 per cent, followed by Sony PlayStation 2 with 14 per cent. The Xbox and GameCube each claimed about 3 per cent of the market, with Sega Dreamcast comprising the last and least market share of 4. 7 per cent. Sega, once an industry leader, announced in 2001 that it had decided to stop producing the Dreamcast and other video game hardware components. The company said it would develop games for its competitors’ consoles. Thus Sega slashed the price of the Dreamcast to just $99 in an effort to liquidate its piled up inventory of more than 2 million units and immediately began developing 11 new games for the Xbox, four for PlayStation 2, and three for Nintendo’s Game Boy Advance. As the prices of video game consoles have dropped, consoles and games have become the equivalent of razors and blades. This means the consoles generate little if any profit, but the games are a highly profitable proposition. The profit margins on games are highly attractive, affected to some degree by whether the content is developed by the console maker (such as Sony) or by an independent game publisher (such as Electronic Arts). Thus, the competition to develop appealing, or perhaps even addictive, games may be even more intense than the battle among players to produce the best console. In particular, Nintendo, Sony, and Microsoft want games that are exclusive to their own systems. With that in mind, they not only rely on large in-house staffs that design games but they also pay added fees to independent publishers for exclusive rights to new games. The sales of video games in 2001 rose to 43 per cent, compared to just 4 per cent increase for computer-based games. But computer game players are believed to be a loyal bunch, as they see many advantages in playing games on their computers rather than consoles. For one thing, they have a big advantage of having access to a mouse and a keyboard that allow them to play far more sophisticated games. In addition, they have been utilizing the Internet for years to receive game updates and modifications and to play each other over the Web. Sony and Microsoft are intent on capturing a portion of the online gaming opportunity. Even Nintendo has decided to make available a modem that will allow GameCube users to play online. As prices continue to fall and technology becomes increasingly more sophisticated, it remains to be seen whether these three companies can keep their names on the industry’s list of â€Å"hig h scorers†.