Wednesday, October 10, 2012

Week 2 EOC: Boston Consulting Group - Video Games

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         Video game industry is facing a really big challenge is because people are actually quit playing games. Like pretty much every industry these days, video-game publishing is in some financial trouble. (What's Killing the Video-Game Business? By N. Van Zelfden. Posted Monday, Feb. 16, 2009, at 3:27 PM) Either TV video games or PC video games are losing their loyalty players. From side to side, we can see why more and more people are stepping out from play video games. First of all, creativity; which is the most important reason as well. Creativity may not be the right word for it but it serves its purpose for this. Lets put it this way, if the price is going to go up, the quality of the games shouldn't go down. Lets take a look at the most successful video game: The world of warcraft. What made this PC game to become the most successful game in the world? The answer is creativity with no doubt. But the leader of video game industry is falling. According to Activision-Blizzard, owners of the cash cows World of Warcraft and Call of Duty, reported losses of $72 million in the fourth quarter of 2008. (They lost $194 million the quarter before that.) (What's Killing the Video-Game Business? By N. Van Zelfden. Posted Monday, Feb. 16, 2009, at 3:27 PM). There are many reasons that why they are losing so many loyalty players. Creative again. Blizzard couldn’t figure a good way to keep the most successful online game fresh as before. Second, The price is always a big problem of the video game industry. December 24, 2008 According to iSupply, in November 2006 the entry-level US$499 PlayStation 3 console was made up of over 4,048 different components at a cost to Sony of $805. (Sony still losing money on each PlayStation 3 console, By Tim Hanlon,December 23, 2008). It Sounds like Sony is out of their mind isn’t it? They are taking their money back from each game that they sold. That’s the reason why the price of games is going up and up, from $30 to $60 just in three years. Back to the frist part, it would be really bad that people are paying $60 for a shitty quality game. There is another very important reason that traditional game consoles are losing their customers. The new gen smart phones and tablets are taking over the world now. Iphones and Ipads are having the largest game players in the world. Most of them are not hardcore gamers they are just playing games for pass time while they are waiting for something. There is old says would be perfect the situation now. For a new civilization to emerge, another must crumble.  

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