Week 2 EOC: Boston Consulting Group - Video Games

In the article that we had to read about the gaming industry I felt as if the gaming industry is going down as a whole due to finical problems of the world today. The video industry is still pulling in a ton of money but the numbers are not showing it. Even though people still will spend a lot of money on the games they wont on the video game console it’s self. "Initial orders for our products are tending to be lower," said Strauss Zelnick, Chairman of Take-TwoInteractive Software Inc. (Page 1 of the Wall Street Journal in refferance to the video market. In the article the cash cow would have to be Microsoft Co. because even though their sales went down they still are ranking in a lot of money for their gaming equipment. They are a big seller because of their Box 360. The question mark in the gaming world would have to be the games that are just being sold since people seem to keep buying them. "You're seeing an industry slowdown in games and consoles," said Amazon finance chief Tom Szkutak. (Page 1 in the Wall Street Journal]. The star of the whole gaming industry would have to Apple because they are making the games avaible on Phone and Ipods so that consumers don’t have to go out and buy everything, and its right their on their phone for them to get too. The dog would have to be Wii because the price is so slow that now anyone can really get the gaming console. Then they are not making any profit from it because they have cut the prices in half. Unlike some other the other gaming consoles they wont be cut until later this year. "It's highlighting the weak months because if people don't really have a reason to go out to the store, they're not," said John Taylor, a financial analyst for Arcadia Investment Corp. (Page 2 in the Wall Street Journal]. They seem to sell the most when holidays and big title games do come out. So now the gaming industry is not worried because they have not been hit with the big name games yet.