Thursday, April 21, 2011

EOC Week 2 - Boston Consulting Group

The video game industry is one that was booming for several years, but lately it seems as if it has starting to head down towards a slippery slope. Through the years, there has been stiff competition between Nintendo’s Wii, Sony’s Playstation 3, and Microsoft’s Xbox 360.
“Where the Kinect is one single unit and the Wii only has a couple of things to put in place, the PlayStation Move requires several components. You’ll need the PS3 system, the Move controller, the Navigational controller, the PS3 Eye, and the proper software to read whatever you’re doing. Based on what we’ve seen, it will take the longest to put into play”



“The Xbox 360 generally appeals to more hardcore gamers, with games like Halo 3 and other first-person shooters. Xbox Live has been more successful than the Sony Playstation Network, despite the fact that Sony's network is free, where Xbox Live Gold service costs about $50 per year. All three  have seen the addition of Netflix movie streaming. Microsoft offers social networking features with Facebook and Twitter. Nintendo offers online connectivity for game play and downloads, but it generally offers fewer options than Sony or Xbox.”



Everyone’s watching to see how this battle plays out, because each company is pursuing a very different strategy. Sony and Microsoft are gunning for pure performance systems, while Nintendo is shooting at fun, playable games that rely more on its unique controllers than impressive graphics hardware.


Based on the research I have done, I think it’s safe to say that the video game industry is quite the competitive market. Lately, it seems like every corporate company is sparking an idea off the competition’s ideas. I think, according to the BCG chart, that the SONY corporation is probably the “dog of the group.” The Playstation 3 is not only the most expensive of the four, but it is also the hardest to set up when it comes to the motion sensor gaming systems (The Playstation “Move”). I think that the Microsoft corporation is probably the “question mark” of the chart because they’re still quite successful from their online network services (Xbox Live.) Also, they have releases the newest of the motion sensor gaming hardware which is the Xbox Kinect. Sales are still rising since they are so new, so it’s hard to say where they stand at now, which is why I categorized them as the question mark. I think the Nintendo Wii is the cash cow. They also just recently came out with the Nintendo 3dS which has had booming success. Besides that, they have had immense success which the Wii itself. In my opinion, I think it is because the Wii appeals to more of a family audience, making it easier to sell, since it attracts not just the younger generation, but the older audiences as well.




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