Wednesday, October 12, 2011

Week 2 EOC: Boston Consulting Group - Video Games


There are a lot of opinions on the direction of the gaming industry lately. With the advancement of technology and the rapid growth of the cell phones, laptops, and tablets, gamers and the gaming industries are at a crossroad of determining the best strategy for sales, combining portability, and convenience. Nintendo president Satoru Iwata says, “He believes that game devs can't simply ignore the burgeoning Smartphone market. "We have to think about that when we're making new games, because it's kind of becoming very easy to let people play games now. They don't have to buy big consoles to play simple games. So that's what we should think about for the future.” Inafune envisions a future where portable gaming consoles and Smartphones coexist http://www.joystiq.com/2011/09/17/inafune-invisions-a-future-where-portable-gaming-consoles-and-sm/ by Ben Gilbert on Sep 17th 2011

Because of the latest technologies on ipads, Itouch, iphone, tablets, and the variety of social networks online gaming consoles may become obsolete. Now gaming offers on-demand streaming of video games onto any platform. Gamers will not need to own copies and can  play their favorites on a variety of platforms, like TVs iPads, iphones and more. According to Nvidia, the world’s leader in computer technology the future seems bright in the PC world. Designers for MAC and PC are competing for the biggest and best of the gaming world. Nvidia says “The future is looking bright for PC gaming, according to graphics card producer Nvidia. In a recent conference call, the company stated that it believes PC game sales will surpass that of consoles by 2014.” Nvidia: PC To Beat Consoles In Game Sales By 2014

With the rapid growth in cloud gaming as well as mobile gaming, these consoles may have to be remodeled, revised, upgraded or just discarded to make room for the new wave of gaming According to SIR: games and reviews they feel the “Its good to know that companies like Sony has considered the potential in cloud gaming as well as the true aspects on what video gaming truly means. However, they should also know that as cloud gaming progresses, the demand for game consoles are fading too.” Cloud Gaming is The Future While Game Consoles Fall Apart director of hardware marketing http://www.sir-games.com/2011/07/cloud-gaming-is-future-while-game.html

So what is cloud gaming? Cloud gaming is an instant connect to your favorite game it is a simple as opening your phone, Mac, TV, PC or ipad, it’s an instant stream and it is a simple as Netflix. This means instant access to the games you love. I believe it will be the best, no disc, you never need to wait for your game to be delivered to you, you don’t have to go to the store. Instant access and that is what appeals to most people these days. Its good to know that companies have considered the potential in cloud gaming and with this comes the death of the console

The Boston Consulting Groups (BCG), The world's leaders in advisor on business strategies has devised a system which consist of four area of concern when marketing your product the four areas are the Star, the Dog, the Question Mark and the Cash Cow  and the cash cow is the goal in most situations, with high market share in a slow-growing industry typically generate cash in excess of the amount of cash needed. Companies want there question marcks, dogs, and stars to all become cash cows.

After reviewing the gaming market and the advancements of technology I have decided that cloud gaming will become a star and then cash cow, PC technologies will be a question mark because A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows. And consoles will become dogs. Dogs are low-growth, they may generate enough cash to maintain themselves but do not promise to be large sources of cash and I feel the console will be out the door real soon.

Michelle Brown
10/12/2011






No comments:

Post a Comment