Week 2 EOC: Boston Consulting Group - Video Games

The video game industry is continuing to grow on a daily basis. Companies are continuously upgrading their consoles in order to enhance the technology and the gamer's experience. "…this prolific industry is rapidly embracing big data technologies, the industry is expected to make waves in novel methods of customer engagement, optimized and targeted advertising, and enhance the end-user experience”(https://www.experfy.com/blog/big-data-transformation-gaming-industry/). There are a variety of gaming consoles that consumers choose from. These include PlayStation, Xbox, Nintendo, and PC. 

In order to look at all of the strengths and weaknesses of these consoles we can perform a BCG analysis. “The BCG matrix was developed by Boston Consulting Group for the management of various business units…[it] is an effective management tool and offers a good framework for resource allocation” (http://benefitof.net/benefits-of-bcg/). With this, we can divide them into four categories: star, question mark, cash cow, and dog. We look at a companies share and growth and then classify which By doing a BCG analysis we can look at how each of these brands compare to each other and what are their weakest and strongest points.

For the video game industry, the star would be iPhone games. These are the products with high-share and high-growth. "Many console and PC game sales are also being cannibalized by digitally downloaded games and alternative entertainment sources like Apple Inc.'s iPhone, which offers thousands of games that can cost only 99 cents or even nothing at all" (http://online.wsj.com/article/SB124865158612682399.html). The question marks are virtual reality and TV games Nintendo, which is high growth rate and low market share. The cash cows are PlayStation and Xbox, which is high-share and low-growth. And the dog is Wii which is low-share and low-growth.