Week 3 EOC: Boston Consulting Group - Video Games

Based on the BCG Growth-Share Matrix, there are Stars (high share and high growth), Question Marks (low share and high growth), Cash Cows (high share and low growth), and Dogs (low share and low growth). 

And based on my research on video game market, here is what I got:

1.)    Star- download digital data i.e. iphone games/apps

Stars generate large amounts of money and also consume large amounts of money. It has strong and high market share and growth rate. A star can become a cash cow when the market growth rate deceased which means lesser choices. And the iphone app market is HUGE, it is "worth more than $2.4 billion a year."  Learn more click this link: http://gigaom.com/2009/08/27/how-big-is-apple-iphone-app-economy-the-answer-might-surprise-you/

2.)    Cash Cow- Xbox 360

Cash Cow has a greater return. It is high share and low growth. When it comes to home entertainment gaming devices, xbox 360 and ps3 are on the top of the list. Microsoft is a cash cow. It enters many different markets to maximize its cash flows. From software to motion games, it has covers all. Here is what people say "Microsoft's Kinect offers several features such as voice commands, hand gestures and the ability to communicate with friends and family...  The strength of Kinect lies in its simplicity of use."
http://www.industrygamers.com/news/xbox-360s-kinect-will-be-big-winner-this-holiday-says-market-researcher-ipsos/

http://beta.fool.com/shamapant/2011/12/22/djia-analysis-microsoft/260/

3.)    Question Mark- Will

Question Marks are growing fast. It has a low market share but high growth. It can go two way: up to Cash cow or down to Dogs. Wii is focusing on kids. It offers large range of motion games thinking if the kids want it, the parents would buy it. However, that is not the case. Many people also think "that the Nintendo Wii is dying."

http://www.conceivablytech.com/2685/business/game-console-market-dissected-nintendo-wii-is-dying

4.)    Dogs- PlayStation 3

Dogs have low market share and low market growth. Xbox 360 might do better in America but in the Japan or Asian countries, PlayStation is the cash cow. Why would I say that PS3 is the dogs? One of the main reasons is that it is so easy to hack. Do you remember when Anonymous attacked PlayStation Network? "Its stock dropped.  Everyone freaked out. Information got stolen." How can you make money when people don’t trust to use your system? It might not be the dog now but if Sony does not do anything about it, it will soon become the dog.

http://arstechnica.com/tech-policy/news/2011/04/anonymous-attacks-sony-to-protest-ps3-hacker-lawsuit.ars