Monday, April 8, 2013

Week 2 EOC: Boston Consulting Group - Video Games

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It was usually misbelieved that the video game industry would always have a high demand and a set market; due to the fact that every single new game that would come out is priced at $65 to $75 dollars, without even mentioning all the bonus features and special editions available within the release date at the cost of a few bucks more.

“Ubisoft’s Assassin’s Creed 3 sales, along with those for other third-quarter releases, including Far Cry 3 — raised selling expenses and led to a current operating loss of €58.1 million ($74.4 million)”. http://www.polygon.com/2012/11/6/3609614/ubisoft-financials-assassins-creed-3-first-week-sales

That is taking into consideration that Ubisoft manufactures games for both the Playstation 3, and the XBOX 360. However the Wii doesn’t fall too apart from the tree hardware sales, including Nintendo Co.'s Wii console, plummeted 38%. The steep drops came on top of a gradual sales decline that began in March”.  http://online.wsj.com/article/SB124865158612682399.html

Personally I rather Playstation and or Sony, as my company of choice; due to the highly anticipated inclusion of the touch pad in the controller of the Playstation 4, seeing how they are trying to appeal to the evermore interactive touch screen market, recently exploding from the introduction of the new Windows 8 operating system. Revolutionizing the all-in-one computer market, that unfortunately falls as a Dog, a choice taken due to the conclusion that all-in-one desktops are but a glorified tablet.

Videogame hardware, software and accessories in U.S. retail stores fell 25% to $810 million from $1.09 billion the same time a year prior, according to surveys from market researcher NPD Group.”  http://online.wsj.com/article/BT-CO-20130314-714946.html    


To that fact I would categorize Playstation in the question mark, with low market share but high market growth rate, in the Boston Consulting Group Approach.  Xbox to begin with monetizes its users to play online, not to mention that the Kinect is a rip off from the Wii. I have to say that Xbox has also fallen to a Dog, however reinventing the Kinect and making it more customable to its users is foreseen as a possible outlet from their damnation.  

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