Wednesday, August 10, 2016

Week 2 EOC: Boston Consulting Group - Video Games

The video game market is ever changing and completely diversified from what it use to be. The current star of this market is apparent and at the tap of a finger. Video game apps. And now with the release of Pokémon Go it seems there is now a market for bringing old games to smartphones."A diversification strategy can be risky when a firm is entering unfamiliar markets. However, it can be very profitable when a firm is entering markets with little or no competition." (MKTG9TH, 17)The obvious cash cow in this is the big consoles such as PlayStation and Xbox. They continue to see slow increase in profit and have a hold on there completion they metaphorically just cant drop the controller while the battle between smartphone and home console rage on. Although the argue going is PC gaming is going up in sale primarily because there is starting to be little difference between buying and XBOX and buying a Microsoft laptop."EA CFO Eric Brown noted, "The online part of our business is growing as much as 60% year over year."(http://techreport.com/news/16867/ea-pc-gaming-is-growing-console-hardware-race-slowing).And who is are favorite problem child of the console world, the Wii. One cause everybody has one and most likely has not used it since they had a few friends over got drunk and saw who would win with a 2on2 tennis match. Ironically the dogs of this world are the ones that use to have training dog games. Nintendo's ds machine did ok then they came along with the Wii and after that came the death of the ds."In fact, it’s so far the weakest in Nintendo’s history for any of its hardware, console and handheld alike." (http://www.ign.com/articles/2014/01/29/these-are-nintendos-lifetime-hardware-and-software-numbers)Although this market changes rapidly it does very much seem to run in circle and just seems to run an reused material.

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