Tuesday, February 19, 2013

Week 2 EOC: Boston Consulting Group - Video Games

The Boston Consulting Group Growth Share Matrix is a diagram that illustrates the different ways that a different product or business can go. It is divided into four sections: the "Stars", the "Cash Cows", the "Dogs", and the "Question Marks".

The "Stars" are the products that have shown a high market share as well as a high growth share. They are the products that have a great chance of becoming "Cash Cow"s later on. The smartphones, tablets, and other mobile based video gaming consoles would be considered in that category. Many gamers in the country are no longer hardcore gamers that want to spend ten hours on a single game. Instead, casual gamers are heavily joining the scene. From the active games and programs on Microsoft's Kinect, to a simple game of Angry Birds or Sudoku on an Android device, these are the devices that will likely have a very bright future.



"While spending on physical retail game sales has been on the decline, digital game sales have risen dramatically. Digital sales — including mobile games for phones and tablets, full games for consoles and handhelds, extra levels and other in-game content — rose 22% in the third quarter of 2012, accounting for $1.4 billion, according to NPD."

USA Today, http://www.usatoday.com/story/tech/gaming/2013/01/26/video-games-2013-nintendo-sony-microsoft/1843903/

The "Cash Cows," is the category that most products should aspire to be. These are the products that do not have to make big changes or investments to keep a large and steady customer base and popularity, and to make great profit. The PlayStation 3 and Xbox 360 systems would both be considered "Cash Cows."


"In some ways 2012 was forgettable for makers of video games played on console systems, either connected to the television or dedicated handhelds. Total retail video game sales plunged 22%, the largest drop amid four straight years of decline, according to market tracking firm NPD Group" 
USA Today, http://www.usatoday.com/story/tech/gaming/2013/01/26/video-games-2013-nintendo-sony-microsoft/1843903/



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