Is Steam's OEM Strategy Revolutionizing Gaming Market?
Steam’s Original Equipment Manufacturer (OEM) strategy undoubtedly is revolutionizing the gaming market. OEM is the process by which a company develops the hardware, software, and firmware components of a product and offers them to another company, which will then incorporate them into its own final product. With Steam, this means that they are offering their gaming software to hardware manufacturers to be pre-installed on their systems.
The OEM strategy has allowed Steam to reach a wider audience and break into the console market, which was dominated by the likes of PlayStation, Xbox, and Nintendo. By partnering with hardware manufacturers like Alienware, ASUS, and iBuyPower, Steam has been able to sell their software on pre-built gaming systems, which have been received positively by consumers and journalists alike.
This strategy has also allowed Steam to compete in an industry where the traditional model is not as profitable as it used to be. Physical game sales have been declining for years, and the rise of digital downloads and streaming services has significantly hurt the profits of gaming retailers such as GameStop. However, Steam’s OEM strategy has allowed it to innovate while also keeping profits high.
The OEM strategy benefits hardware manufacturers as well. They can now offer a pre-built, high-quality system with a variety of games already installed, eliminating the need for consumers to individually purchase and download games. This convenience has proven to be a draw for both casual and hardcore gamers.
In conclusion, Steam’s OEM strategy is successfully being implemented and revolutionizing the gaming market. By partnering with hardware manufacturers, it has allowed Steam to reach a wider audience and compete in an industry that has been disrupted in recent years. The benefits of this strategy are clear for both Steam and hardware manufacturers, and it will be interesting to see how it continues to impact the gaming industry in the future.
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