EOC: Boston Consulting Group

The video game industry has proven itself to be a profitable industry with the various games and interfaces that people have used. This is an industry with has a great deal of consumers. “According to The Entertainment Software Association, this is an industry with 155 million American users. In 2014, American consumer spending within this industry was $22.41 billion.” (http://www.huffingtonpost.com/yura-bryant/getting-your-piece-of-the_b_8273850.html). This is an industry where there are plenty of people and that they are willing to spend money on aspects of this industry, whether it be consoles or games. There are various ways that people can play the games, and these interfaces can be profitable in and of themselves. There are the consoles, of which are mainly the Xbox, PlayStation 4, and Wii U. The other major interface that is a competitor to these major consoles, and that is the PC. Even with competition from that last system consoles are still fairing well. “While many have predicted the slow decline of consoles, the segment is holding up well. Total console games are expected to grow from $8.84 billion in 2014 to $11 billion in 2019, a CAGR of 4.5 percent.” (http://venturebeat.com/2015/06/02/u-s-games-industry-forecast-to-grow-30-to-19-6b-by-2019/). The PlayStation 4 has sold 18.5 million units, the Xbox One has 10 million, while the Wii U hasn’t sold as well, the additional accessories have proven to be profitable. For consoles digital console games are expected to grow from 1.17 billion in 2014 to 3.27 billion by 2019. On the PC side, PC game revenues are expected to grow from 3.28 billion from 2014 to 4.53 billion by 2019. “Sales of traditional video game hardware (such as consoles and handheld gaming systems) and software in 2014 topped $22.4 billion, according to the Entertainment Software Association—an 8% increase from 2012.” (http://fortune.com/2015/08/06/video-game-developer-jobs/). There is a market for both console and PC games. Overall it appears that considering both consoles and PC, the star is the mobile game appears to have the most growth, the question mark is are TV games, the cash cow is the Xbox and play station 4, and the dog is the Wii.