Thursday, April 14, 2011

Week 2 EOC: Boston Consulting Group

                The video game industry has taken a downfall, in the last couple of years; maybe it’s because new games cost about $60-$70, and the country is currently in a hard recession. According to NPD Group, “Video game sales fell for 2010 but are expected to bounce back this year as people embrace new ways of playing games online and on-the-go” (http://www.reuters.com/article/2011/01/14/). The NPD Group did their calculations correct, The Los Angeles times state in one of their articles that The video game industry received a rare lift in February, with sales rising 3% in the U.S. as consumers dug deeper into their pockets to buy motion controllers and consoles from Microsoft Corp. and Sony Corp” (http://articles.latimes.com). I think that video game consoles like the Xbox 360 Kinnect, and the Sony Playstation 3 Move can be considered a cash cow, and a question mark in Boston Consulting Group chart; according to news.cnet,For the month, total revenue from gaming consoles, hardware, and software slipped 5 percent to $823.5 million, compared with $865.7 million a year ago; video game hardware took the hardest hit, dropping 20 percent to $241.5 million from $303 million a year ago” (http://news.cnet.com/8301-10797_3-20009524-235.html). This may be due to the fact that most people now a days do not have time to sit down and finich an entire game, and these persons are using more game applications on their mobile devices.



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