Friday, October 14, 2016

Week 2 EOC: Boston Consulting Group- Video Games


Star: Gamers are now shifting to digitally downloadable games. Mobile games are actually giving gaming consoles a run for their money, based on cost, convenience and technological advancements. According to Daniel Rubino from Windows Phone Central High-end smartphones in 2013 have all but pushed out the major mobile gaming devices such as Sony PlayStation Portable and Nintendo DS. They are “less expensive, more easily available content, better screens and processors, ubiquitous connectivity, and the simple convenience that comes from convergence.” (Android Central, 2016).

Cash Cow: PS4 Console continues to do well as it maintains a dominant market share.  Sony revealed “it sold 5.7 million PlayStation 4 units through the holiday season, giving the console a great chance to surpass the PS2 as the world's best-selling gaming system” (International Business Times, 2016).

Question Mark (Problem Child): Virtual Reality headsets has the potential to be a Star, however, with the cost to produce these headsets in comparison to digitally downloadable games, its profits are questionable. “Problem children need a great deal of cash. Without cash support, they eventually become dogs” (MKTG, pg.18). I believe the PS4 also falls into this category as it has the potential to be a star, if it continues to make technological advancements.

Dog: Wii, Wii U, PS3, PS2, and Xbox 360 all show low growth potential and a small market share. “Sales of consoles such as Microsoft Corp.'s Xbox 360 and Nintendo Co.'s Wii plummeted 38%” (WSJ,20019). Analysts are expecting Sony to cut the price on its PS3 by about $100 this year. Microsoft is also expected to do price cuts on the Xbox 360 models as well. Although Nintendo has not stated that they will do price cuts they will do so indirectly by bundling games with the console.

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