Week 2 EOC: Boston Consulting Group - Video Games

The video game industry is very complex, with not only game consoles but also mobile games available through the app stores, and PC games on the rise. Microsoft’s Xbox One in my eyes would be considered a Star because Sony has surpassed Microsoft in console sales several months in a row, pushing Microsoft to promote the Xbox One more. “As Sony has beaten Microsoft in cumulative unit sales thus far, Microsoft has gotten more aggressive with pricing and promotions,” (Source). Although PlayStation has more console sales overall it is estimated that Microsoft has made more money because of the higher price tag, “The Company unbundled the Kinect in order to reduce the Xbox One's price point to $399, matching the PlayStation 4, in June. Unit sales promptly doubled over the prior month,” (Source). With that being said I believe the PS4 is a Cash Cow. “Sony sold 18.7 million systems in the last financial year - which ended in March - compared to Nintendo's tally of 16.3 million video games machines,” (Source). This is because the demand for Nintendo’s Wii U Lagged far behind that of the original Wii. Nintendo’s Wii U would fall under the Question mark category on my BCG matrix, because the demand is not very high and I feel as if Nintendo gave up on promotion for their product because it was taking to much energy to keep it afloat. This would leave the Dog open on my matrix and I feel as if games available through the app store on your mobile devices would fit this category well because the demand and promotion are low but the availability and price range is great.