Week 2 EOC: Boston Consulting Group - Video Games

The Video Game Industry is ever changing, and currently not going through the best of times.  Big corporations like Microsoft, Sony, Nintendo are all feeling the hard times of the recession. Big game consoles are getting the worst of it, because games are $60-$70 and gamers are being more reserved with their money.  However there is one section of the industry that isn't getting affected, and in fact is growing into a cash cow, are the video game apps people can download on their hand-helds for 99c. or even for free.  Microsoft is trying to take advantage of this, stating that, "The company will also give developers who build apps for the Windows Phone platform broader access to a phone’s hardware, including the built-in camera and motion sensor. This will let programmers build a new range of apps, including augmented reality experiences." (Nick Bilton. http://bits.blogs.nytimes.com/2011/04/13/microsoft-demonstrates-windows-phone-updates/?scp=9&sq=video%20game&st=cse)  It's hard to keep production strong, when nobody wants to spend, and companies like, "AT&T and Time Warner to Tele-Communications Inc. and the proposed Paramount-Viacom combo -- are spending billions." (Philip Elmer-DeWitt;John F. Dickerson/New York and David S. Jackson/San Francisco. http://www.time.com/time/magazine/article/0,9171,979289,00.html) NPD manager, Matthew Tattle says, "Clearly gamers are becoming much less reluctant to spend on games . . . One would think it is a little unusual to see impulse purchases during a recession but it's clear that hardcore gamers will find a way to satisfy their need for something new, different and  enjoyable." (TimTuri. http://www.gameinformer.com/b/news/archive/2009/10/16/news-npd-study-says-40_2500_-of-games-sales-are-impulsive.aspx)    Gaming will continue to find a way into the people's homes, its just going to give the engineers more of a challenge to find what will grasp the consumers attention and keep it.