Thursday, April 14, 2011

Week 2 EOC: Boston Consulting Group - Video Games

Currently in the video game market, there is a high demand for apps via the Iphone, Smart phones, or Android cell phone and devices. Apps are currently dominating the video game industry, which leaves the remainding competetors worried. Competetors such as Playstation, Xbox and the Wii, are trying to compete with add-ons and other soft/hardware that can enhance the gaming experience, despite that in the BCG chart, apps are definitely the star.
"It’s going to be a tough fight. The iPhone’s app store has more than 350,000 apps. Games and entertainment is the most popular app category, making up about a quarter of the total, Apple [AAPL  332.42    -3.71  (-1.1%)   ] recently said."
The X-Box has developed the Kinect, which eliminates the controller. Despite its recent release, it hasn't had a huge income. With only 17 games released, it still only remains in the question mark slot of the BCG growth share chart. Playstation has recently released the Move, which is comparable to the Wii, with its motion detecting wand like tool. It hasn't had as much of a success as the Xbox's Kinect.  
"According to estimates from Electronic Arts, total software sales for systems like the DS and PSP fell 32 percent in Europe and North America in the year ended in September. EA declined to give its own sales figures."
Regardless of the Wii's success, which i believe is neutral between other competetors, Nitendo's Cash Cow is the DS. It has reformed itself and has now become the Nitendo 3DS with 3D graphics, which dominated the PSP. Since it's release, it still has its income, but still doesn't compare the income that applications and games on phones are making.  Unfortunately for Playstation, they haven't released the 2nd edition PSP due to funds and also has not had a lot of success with the Move, wand-like controller.
"Alone among the three major videogame consoles, sales of the PS3 are down about 19% from November 2007, according to the latest stats from the NPD Group. Sony was only able to sell 378,000 PS3s this November, compared to 466,000 last year," begins the article. "And the problem for Sony isn't the recession, it's the PS3." The PS3 and Sony, on the other hand, are currently in the Dog slot of the BCG chart. It has been plummeting in sales and not even its additions are up to par. On Sony's behalf, they have released a new phone called the Xperia, which has Playstation games for apps and is compatable with other apps. Hopefully this new phone can at least revitalize Sony and the Playstation company, but until then apps will remain dominating.



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