Week 2 EOC: Boston Consulting Group - Video Games

In the video game industry the PS3 is the star in my opinion, if you look at the chart below, you can clearly see that the market of the PS3 it is just growing and growing. They have a great product and a great trail of followers, their reputation is also just getting bigger and better. Granted their system is expensive, thats one of the reasons why that they are not the cash cow.

"Pidgeon suggested that by 2012, the PS3 will lead the pack, with more than 107 million units sold worldwide, while the Wii will be just behind, at nearly 107 million units."

Read more: http://news.cnet.com/8301-13772_3-9948454-52.html#ixzz12Iq5p5zp

The cash cow as of now is most defiantly the Nintendo Wii. The wii has done great in sales and is the leader of the pack when it comes to sales simply for the fact that this system is the cheapest out of all three of the major systems. I think that the reason of this impact, that the reason the wii has done so well not just for the price that it is, but also for the fact that the country is in a recession and people don't have the money to get a PS3 or an X-Box 360, because of this recession, people are only going to buy what they can afford and I think now that the country is starting to come out of the recession, people are beginning to afford and PS3 or an Xbox.

"The sales are slowing at a faster rate than analysts had forecast. A drop of 13 percent last fiscal year followed an 18 percent drop the year before, indicate that there is a bigger problem than simple oversaturation of the market. With Sony and Microsoft still selling units at a steady pace (and the PS3 actually increasing in sales), Nintendo is slowly losing ground. It still has a huge lead of roughly a 30 million units, but that number is shrinking."
http://www.digitaltrends.com/gaming/hardware-gaming/nintendo-wii-sales-begin-to-flatline/

The dog in the marketing industry is the Xbox 360, Microsoft does not come out with a good product when it comes to video game systems. Many people have had problems with the 360 (red ring of doom) and because of this little drawback, Microsoft have been losing customers left and right, one of the reasons why the PS3 is the star right now.

The question mark is one thing that is boggling everyones minds, gamers and retailers alike. No one really knows who is going to have the next best thing. People are saying its going to be the next Playstation (PS4), their saying its going to be the next Xbox, no one really knows, but if I were to put money on it I would defiantly have to say the next Playstation. Sony has the reputation to back themselves up, they have the third-party gaming software companies to back them up and on top of that, Sony has and will always come out with a good product. My doubts are (and I think everyone else's too) how much will this new system cost? Is it REALLY going to better than the last product? Only time will tell.

"The next generation is going to be so powerful that playing a game is going to be the equivalent of playing a CGI movie today," predicts Yves Guillemot, chairman and CEO of the publisher.

http://www.cnbc.com/id/31331241/The_Next_Generation_of_Gaming_Consoles