Wednesday, October 10, 2012

Week 2 EOC: Boston Consulting Group - Video Games



The Videogame and gaming market is in major decline, thus forcing game and console makers into steep competition. “People are not buying that fourth or fifth game every year, so the pressure is on for game-makers to be in the very top tier” (Boornstin). Apparently despite the strong efforts from larger companies such as Microsoft, Nintendo and Sony profits have decreased in all except Apple Inc. sporting a growth of 8%. Taking these figures into account mobile gaming Apple Inc. gaming specifically is without a doubt the only industry member categorized as STAR. The less popular and frankly unexplored competitors of the Android, Amazon, and other mobile gaming markets are Question Marks. They most certainly have potential, but are they capable of obtaining the success of Apple products?  “The lack of new hardware, as well as new games in general, has hurt the industry. One factor contributing to the softness we have seen in retail content sales so far in 2012 has been the decline in the sheer number of new titles,” says Anita Frazier, an NPD analyst. Being that there is indeed a lack of releases I put nearly all gaming consoles in the DOGS category. They have lost their hype, with nothing new they’ve lost the buyers attention and business. All consoles that is with the exception of Microsoft Corporation’s Xbox 360 with Kinect; still rather new to the market motion gaming still has a little juice in it so I place it in the Cash Cow, barely though. Without the Kinect extension to the system it is completely dead. What may launch Xbox further into this section is the advancements they plan to take with the Kinect adapting it to be compatible with other forms of windows software. “Kinect for Windows offers the potential to transform how people interact with computers and Windows-embedded device,” says the retailer itself, Microsoft.  This new technology may very well impact its market significantly, we’ll just have to keep an eye on it.

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