Week 3 EOC: Boston Consulting Group- Video Games

In a society where many people are jobless, or having their hours cut at work, there is a need for more at home entertainment. People are turning to their video games to keep them occupied at a time when they would normally be doing any other mundane activities they may have no interest in. However, due to the recession, it is expected that many people will not be able to spend the money necessary to obtain these games, or rather that was the projection back in 2009. According to an article in the Wall Street Journal entitled Videogame Makers Can’t Dodge Recession, it is explained that videogame sales have plummeted while people are “tightening their purse strings [waiting for game makers] to cut the prices of their consoles." Although this article was written a few years ago, part of its meaning is still relevant, and still applies today.

Just as we are coming out of the recession, the gaming industry seems to have taken a turn for the better. According to an article by Jay Green called Microsoft Earnings Meet Expectations as Windows Sales Dip, Microsoft CEO Steve Ballmer said, “We delivered solid financial results, even as we prepare for a launch year that will accelerate many of our key products and services.” About three years later, people are now spending more on home entertainment as it becomes available. As people are spending more time at home, it seems to be more important to allow themselves to generate a way to be entertained. As job rates are increasing, people now have the money to spend on games and gaming consoles.

After studying the Boston Consulting Group matrix in Marketing: An Introduction for Education Management Corporation, 10^th Edition, by Gary Armstrong and Philip Kotler, I believe that the video game market is a question mark meaning that they are in a high market growth rate and a relatively low market share. “Management has to think hard about which question marks it should try to build into stars and which should be phased out.” Video game makers have constantly tried to revamp the gaming world with new technology, while recognizing which is not working.