Week 2 EOC: Boston Consulting Group - Video Games

 

In the video game world there are so many different video games and video game systems. And some are doing better than others. For example, the portfolio analysis of the video game market is the star of all the game systems which is the Microsoft X-box. Then, there is the cash cow which is Sony PlayStation. Then there is the question mark which is the Nintendo Wii. And last but not least there is the dog of the industry which is Sega Dream Cast.

        Microsoft X-box is the star of the industry because it has high growth rate and high market share. The game system has popular games and features that the other game systems don’t have. Which is why most people prefer the X-box. “We rate MICROSOFT CORP (MSFT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and solid stock prices performance.”( http://www.thestreet.com/). This quote shows exactly why Microsoft X-box is the star.

       Sony PlayStation is considered the cash cow of the industry. It has low growth rate but high market share. PlayStation doesn’t have all the features to draw people in like the X-box. But according to an online source PlayStation new ps4 is competing by adding new features that they know their customers would love. For example an online source states “But the most advanced revelation could be the PS4 system update 2.0 which will allow friends to play a game even if they don't own it” (http://www.cnbc.com/). Then, there is the question mark of the video game industry which is the Nintendo Wii. The Wii is a game system where you can be active and it’s for all ages. The Wii has high growth rate but low market share which is why it’s not doing as its full potential.

          Then, there is the dog of the industry which is Sega Dream Cast. They are labeled the biggest failure of the video game industry. The Dream Cast has low growth rate and low market share which is why it is discontinued. It could not compete with the other video game systems. As stated in an online source “Few gadgets are remembered as fondly as Sega's Dreamcast, and yet this quirky games machine flopped so hard that it forced Sega to quit the console market entirely.” (http://www.cnet.com/). Which is why they are considered the dog of the market.