Tuesday, October 28, 2014

Week 2 - EOC - Boston Consulting Group - Videogames

            Times are beginning to become tougher for videogame developers. They strived to stay protected, but even the greatest have their weak moments. Oddly enough, the videogame industry was actually thriving months back. Racking up serious growth, releasing new games nearly every other month. Even while other businesses were already suffering through their downfall.
            An article from The Wall Street Journal states, “last month, videogame sales plunged by a record 29% year over year, according to market-research firm NPD Group. Meanwhile, sales of consoles such as Microsoft Corp.'s Xbox 360 and Nintendo Co.'s Wii plummeted 38%. The steep drops came on top of a gradual sales decline that began in March” Kane, Yukari I. "Videogame Makers Can't Escape." The Wall Street Journal [New York City] 28 July 2009.
            Analysts expect the videogame makers fortune to turn around in on-coming months, but not the near future. Gross incomes are also expected to see a decrease nationwide. Which also means a decrease in sales, mostly impacting Nintendo’s Wii. With some luck for the gamers out there, they may be fortunate enough to see a decrease in sales prices for console. Microsoft’s Xbox 360 and Sony’s PS3 has been predicted to cut nearly $100 of its retail price.  Not only because of the recession, but also because the planning of the release of Sony’s brand new PS4.

            Though no representatives from Sony, Nintendo, or Microsoft has confirmed these predictions and assumptions. Analysts say it is more than likely to occur.

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