Global Video Game Sales Analysis (1980 - 2016)

An investor has been approached by a startup video game development company that is looking to break into the gaming industry. The investor is interested in understanding the current market trends and preferences to make an informed decision on whether to invest in the company. The investor has requested an analysis of global video game sales data to identify patterns and insights that can guide their decision-making process.

The following is an in-depth analysis of video game sales spanning from 1980 to 2016. This analysis includes detailed explorations of:

Games released per year, charting the rise in popularity of the industry.

Sales Variability platform to platform.

The average life cycle of platforms to determine a ‘current period' for deeper analysis.

Platform Sales data for the current period.

Effect of critic and user scores on sales for the top performing platform of the current period.

Comparing game sales on the top platforms to sales on other platforms.

Sales by genre in the current period.

Regional sales in the current period.

Testing the hypothesis: “Average user ratings of the Xbox One and PC platforms are the same.”

Testing the hypothesis: “Average user ratings for the Action and Sports genres are different.”

Data Cleaning Process: Effective cleaning and resolving of data integrity issues. The paren_stings dictionary is used to categorized annotations added to the end of game titles, and the normalize_names function is used to clean the data set according to those categories.

Platform Lifecycle: Determining an average lifecycle of approximately five years for gaming platforms.

Leading Platform Analysis: Identification of PlayStation 4 as the dominant platform in terms of global sales.

Market Dominance: Sony and PlayStation 4's continued leadership in the gaming industry.

Genre Profitability: The Action and Shooter genres emerged as the most profitable, reflecting strong consumer preferences.

Regional Differences: Notable differences in platform popularity, genre preferences, and the impact of ESRB ratings across regions.

Hypothesis Testing Conclusions:

Based on the analysis, the following recommendations are made to the investor:

Invest in PlayStation 4: Given its market dominance and strong sales performance, investing in PlayStation 4 games is likely to yield high returns.

Invest in Console and PC Games: Focusing on games for consoles and PCs is recommended, as these platform sales outperform handheld and mobile platforms.

Prepare for a New Platform Release: With the most recent platforms being released in 2012, a new platform is likely to be released soon. Preparing for this release can help the company stay ahead of the competition.

Focus on Action and Shooter Genres: These genres have consistently performed well and are likely to continue to do so. Action, in particular, has a broad appeal across global markets.

Consider Regional Preferences: The significant differences between Western and Japanese markets should be considered carefully when developing and marketing games.

pandas version 2.1.4 numpy version 1.26.0 matplotlib version 3.8.0 seaborn version 0.12.2 scipy version 1.11.3