1.
Maggie Salgado
BA 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.

2.
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.

3.
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.

4.
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.