Week 2 EOC: Boston Consulting Group - Video Games

The gaming console market has either good news or bad news depending on which manufacturer you are. Apple is looking at the future with optimistic eyes based on current market trends. The iphone and ipod touch make them the big? For sure. "Noting that some 665-760 million games may have been downloaded from the Apple (AAPL) App Store during the last 12 months, Sacconaghi estimates that the installed base for the iPhone and iPod touch platform could amount to about one third of the total handheld gaming installed base by 2012." “http://digitaldaily.allthingsd.com/20090929/iphoneos-gaming" On the other side of things Nintendo remains the star but may soon fall down the latter. "U.S. consumers are increasingly ditching the Wii and are adopting rival game consoles, especially Microsoft’s Xbox 360. Nintendo needs a new Wii now, not in 2011 or in 2012. Nintendo has to face reality that the Wii is dying in the U.S. It will be nearly impossible for Nintendo to return to positive growth again." http://www.conceivablytech.com/2685/business/game-console-market-dissected-nintendo-wii-is-dying/" Remaining as the cash cow Ps3 has been able to keep up and stay in the game. "The SACHD report says that in the first quarter of 2010, the PS3's market share grew at the expense of the Xbox 360. The Wii still holds the largest share of the market with an estimated 17.5 million sales by the end of 2010, compared to the predicted 14 million for PS3, and 10.5 million for the 360." http://www.gamepro.com/article/news/215272/ps3-hits-31-percent-market-share-gets-hbo-distribution-deal/" As revealed by the above sources the Xbox 360 still remains at the end of the pack. All in all we can clearly see the big ? will soon be the dominating star. Hats of once again to Apple.