Wednesday, October 10, 2012

Week 2 : Boston Consulting Group- Video Games



"The tentacles of the recession have reached into the video game industry, a business that was long considered downturn-resistant." ( Wall Street Journal / wsj.com) 


This article was written in 2009. With further research in the current year of 2012 the U.S. retail sales of new video game hardware, software and accessories fell again in July this year. Overall sales fell 20 percent according to the research firm NPD Group. The video games fell 23 percent from a year earlier. Nintendo Co.'s Wii U will be introduced later in the year and the prediction by NPD is that sales will be down from last year.





“Feeling pressure from the popularity of inexpensive and easy-to-play video games on Apple Inc iPhone and other smartphones Sony Corp. said it will start selling “PlayStation-like” games in October for handsets, including those not manufactured by the Japanese electronics giant.” Sony Play Station


The company always viewed PlayStation 3, which debuted in 2006, as a product with a 10-year life cycle and they don’t plan on replacing it at this time.




“Some component suppliers to Apple in Asia say they have received orders to make more than 10 million units of the smaller tablets in the fourth quarter. That is roughly double the order that were placed for Amazon’s Kindle Fire tablets in the same quarter, these suppliers say.”
(Luk, Lorraine. "Buzz Building for Smaller Apple Tablet" Digits technological news and insights. Wall Street journal Blogs. / WSJ.com / October 7, 2012,)   Apple Tablet

The iPad Mini tablet is suppose to have around 7.85-inch screen and a lower price point to compete with newer tablets from Google and Amazon. Apple's market share of tablets was nearly 70 percent for the second quarter of the year. Apple is rumored to be revealing the iPad Mini later this month.

In conclusion my BCG analysis of the video game market after my research:




In the Cash Cow= Playstation 3


The Star=iPAD, iphone, smartphones


The Dog=Wii

The Question Mark=Android and Kindle
      

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