Wednesday, October 10, 2012

Week Two EOC: Boston Consulting Group Videos Games


 
Videogame Makers Can't Dodge Recession
The way the recession is affecting video game sales is no surprise to some. In 2009, sales have declined about 23% from the previous year.
“Retail sales in the PC game software industry also experienced declines, with revenues down 23 percent, generating $538 million in 2009. The total console, portable and PC game software industry generated $10.5 billion, an 11 percent decline versus the $11.7 billion generated in 2008.”

 Most thought the video game industry was a bit immune to the economic recession. With more declines in the following years, sales have dropped sharply.
The xbox has shown dropping sales and struggled to make any kind of profit. The PS 3 hasn’t fared much better. With Nintendo’s Wii U due out soon, industry analysts will be keeping a close eye on Christmas sales.
            In my opinion the Dog would be the Xbox, the Star might be the new iPhones and iPads and Kindles, the cash cow would probably be the Sonys’ PS 3, and the Question mark could be the online gaming world.
 “Watch for more practical purchases this year with consumers buying useful items that they need rather than spending their money on luxury treats,” NPD analyst Marshal Cohen told GamesIndustry Interntational, “Consumers tell us they want to shop more but without the’it’ item and lack of pent-up demand this could be the Christmas of Contradictions.”

 Normally the holidays are good to video game sales. This year, though, not so much. According to NPD game sales in December were down 21 percent over the same time last year, to just $3.99 billion.”

“ Hardware sales took an even larger nosedive, plummeting 28 percent, and accessories dropped 27 points. For the full year, video game sales were down 8 percent compared with 2010, and even digital sales suffered. Downloadable content, in app purchases, subscriptions and other non-physical media gaming sales totaled between $16.3 and $16.6 billion -- down 2 percent from last year. And, in case you're interested, the best selling game of the year was Call of Duty: Modern Warfare 3 -- shocker!”

/http://www.engadget.com/2012/01/13/video-game-sales-drop-21-percent-in-us-as-kids-remember-theres/

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