Wednesday, July 25, 2012
EOC Week 2: BCG- Video Games
I remember playing video games with my brothers and cousins as a kid. I remember one Christmas; my brother got his very own Nintendo Gaming system. Since my childhood days, video games have evolved to a worldwide network of gamers. The main three gaming consoles are the Nintendo Wii, which was the first gaming console that has a wireless controller that captures body movements, the Sony PS3 and the Xbox. You can create a profile, become part of a team, and challenge people all over the world in games. This was a huge hit in the earlier 2000’s, but recently the video gaming industry has declined tremendously. "If people don't really have a reason to go out to the store, they're not," said John Taylor, a financial analyst for Arcadia Investment Corp. in Portland, Oregon (www.wsj.com)
This decline can be blamed on people choosing to download games to their mobile devices (cell phones, ipad, kindle etc.). "Nintendo said that it plans to focus more on digital downloads to improve sales of the 3DS. Nintendo also plans to release a larger 3DS XL handheld at the end of July." (www.venturebeat.com). This is a smart move for Nintendo if they want to remain relevant in the gaming world. According to the Boston Consulting Group, I'm sure it’s safe to say that the Nintendo Wii is in the cash cow stage in its career.
As for the Xbox, its cash cow days are over. I believe that the Xbox is in its dog days. There is little to no growth, and no one is buying. "The next generation of gaming consoles will fail to reach the same audience current machines have according to two very smart and reputable market analysts!" (www.baddigit.com) The generation of NOW wants everything portable and downloadable. This is why I feel that Ipads, Kindles, and other tablets, they are in the (?) category of the BGC strategy. This is a growing market, but at this point it is difficult to see where its headed. “Indeed, many educators have been discussing the potential of handheld technology to leverage learning, while watching for signs that the manufacturers of e-book readers may cut prices.” (www.scholastic.com) Iphones are in the star category as far as gaming goes. You can download just about any game and have it at your fingertips at any time. Where is gaming headed? To a cell phone or tablet near you…