At a time when the financial climate is so unstable, the video game industry is more uncertain than ever. Last year the industry was reporting growth, but by the end of 2010 the market slowed down and they reported losses. The market is now facing much more competition than ever, which is changing the environment drastically. The true question here is who is the leader of the gaming market? Since the Wii came out it has arguably ruled the marketplace. Its direct competitor Playstation 3 has fallen behind. Xbox hasn’t been able to keep up with either systems, but still remains a major player in the competition. Now there is a new player, Microsoft’s Kinect, which has made an impact but still not selling the keep the market afloat for too long. “According to a study by Strategy Analytics, The video game market worldwide has grown by over 50% in the period 2005-2010 thanks to the popularity of console games like the Wii and PS3. However, it is believed that Wii has already peaked in sales and will decline post 2011.” [http://gorumors.com/crunchies/video-gaming-console-market/]
If trying to place the gaming consoles in a Growth Matrix, based on sales this year, the Wii and Playstation would be the Cash Cow, the Kinect would be the Star, PC Games would be the dog due to their lack of real competition in the market, and smart phones would be the question mark. Smart phones offer a brand new range in the market and have a relatively low cost so far. “Smartphone subscribers will drive the mobile gaming market upwards, comScore states, noting that these users are more likely to play games on their handsets.”
[http://news.softpedia.com/news/Smartphones-Help-US-Mobile-Gaming-Market-Increase-139866.shtml]
The market is at a down time and desperately looking for something new and revolutionary to pull it out. “The advent of numerous smart devices featuring enhanced gaming capabilities has largely caught most gamers’ attention. A recent study by Flurry reveals that the iOS and Android video game market sales have increased from 5% in 2009 to 8% during the last year.” [http://www.mobiletor.com/2011/04/19/apple-and-google-increase-u-s-video-game-market-share-in-2010/]
If trying to place the gaming consoles in a Growth Matrix, based on sales this year, the Wii and Playstation would be the Cash Cow, the Kinect would be the Star, PC Games would be the dog due to their lack of real competition in the market, and smart phones would be the question mark. Smart phones offer a brand new range in the market and have a relatively low cost so far. “Smartphone subscribers will drive the mobile gaming market upwards, comScore states, noting that these users are more likely to play games on their handsets.”
[http://news.softpedia.com/news/Smartphones-Help-US-Mobile-Gaming-Market-Increase-139866.shtml]
The market is at a down time and desperately looking for something new and revolutionary to pull it out. “The advent of numerous smart devices featuring enhanced gaming capabilities has largely caught most gamers’ attention. A recent study by Flurry reveals that the iOS and Android video game market sales have increased from 5% in 2009 to 8% during the last year.” [http://www.mobiletor.com/2011/04/19/apple-and-google-increase-u-s-video-game-market-share-in-2010/]
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