Wednesday, October 13, 2010

Week 2 EOC: Boston Consulting Group - Video Games

       The Boston Consulting Group is based all upon star, cash cow, question marks, and dog. The star, which is a high growth product, would be the Nintendo Wii.Today's revision suggests that the roaring pace of Wii growth that we've seen until now may be over," said in a report in the Times."The numbers also imply that we are going to see a sudden collapse in the fourth quarter from record margins to some of the thinnest margins Nintendo has experienced for three years. (http://www.computerandvideogames.com/article.php?id=207059?cid=OTC-RSS&attr=CVG-General-RSS). The cash cow, which is less invested in, but very heavy cash produced product, would be the PS3. "This will drive PS3's unit sales," said Hirokazu Hamamura, president of Japanese game magazine publisher Enterbrain. "It is still more expensive than its rivals, but the revision has put the machine within the allowable range of game machine prices."(http://www.usatoday.com/tech/gaming/2006-09-22-ps3-price-lowered_x.htm).The question mark would be any iPod/iPad touch products from apple. “While the iPod touch in November accounted just 0.05 percent of all the use on the tens of thousands of websites tracked by stats firm Net Applications, its use has seen steady gains that put the touch screen Wi-Fi device at 0.15 percent -- still small, but a threefold increase in its footprint in less than half a year.” (http://www.appleinsider.com/articles/09/0//ipod_touch_web_share_triples_as_windows_reaches_new_low.html). Surprisingly the apple products still have a bit more of catching up to due in the market of video games consoles, but it is not too bad. The dog, which may not have large sources of cash, would be PC games.The right way to gauge the success of consumer PCs is no longer the adoption rate of households with PCs, or even the number of PCs per household, but rather the number of machines per individual," according to Bob O'Donnell, vice president of Clients and Displays for IDC.”(http://news.cnet.com/8301-1001_3-10037754-92.html).

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