Week 2 EOC: Boston Consulting Group - Video Games

All these video game companies are all cash cows, if you look at the makers of the game consoles they are made by cash cows as well, so why wouldn’t they be cash cows themselves? Take Microsoft for an example. Yusuf Mehdi, the CMO of Microsoft’s Interactive Entertainment Division, announced that they have sold more than 67 million Xbox 360s since the console launched in 2005, and it has generated more than $56 billion in sales. That is the sale numbers without it popular Xbox Kinect addon. They have sold 19 million units of those! Another example is Sony the makers of the PS3, since their launch in 2006 they have sold 70 million units beating out Microsoft. When asked about their ps3 launch in 2007 Jack Tretton said, “The fact that we were able to reach the one-million mark faster than our top-selling platform, the PS2, further validates the strength of the PlayStation brand and our belief that consumers are ready to experience true high-definition gaming." Then he followed up by saying,"Reaching the one million mark for PS3 is the first of many major milestones for us as we head into a new year. Even more impressive, is that we were able to accomplish this feat while successfully managing two other gaming platforms—PS2 and PSP." Maybe then was Sony a Star with a new product but today in 2013 they are not. Consoles are not selling anymore the fact is these company's need to release a new consoles that have star qualities to them like the Xbox360, PS3, and the Wii did 7 years ago.