Week 2 EOC: Boston Consulting Group - Video Games

The Boston Consulting Group has an interesting chart on how to categorize certain markets and their future potential or failure. One market that is hot and has been hot for a while is the video game market. Although the market for gaming is growing at an alarming rate, the specific brands and technologies providing the hardware are dwindling, also at an alarming rate. Now that doesn’t necessarily mean that all consoles will go away completely as soon as the production stops. “No, I don’t think we need it, and more importantly there is a business model reason to bypass the console, because the publisher will make more money if you play off-console.” This is a slow transition over the next decade or so, but nevertheless the ability to judge where the market is heading. According to the model The Boston Consulting Group has given (Stars, Cash Cows, Question Marks, and Dogs) we can size up the video game market. In the Stars spot at the moment is going to be mobile gaming. Right now in this day and age it is app games that are just simple enough to be endlessly addicting and just rewarding enough to want to go back to gain levels and points. These games, although very successful, are very primitive, and how fast technology is moving forward, the need for console quality games on your mobile device is going to go through the roof. Imagine the graphic quality and playability of ultra-res console games on your phone. In the Cash Cow spot I’ll give the award to both consoles, Xbox and Playstation. These consoles are sucking all of the cash that they can from the public before they can’t anymore. In the question mark section would be the virtual reality, I don’t think they’ve quite figured out what to do. And the Dogs would be PC’s unless the price of hardware dramatically decreases so they overwhelming majority can afford the hardware to play whatever the video game market can through at them