Thursday, August 11, 2016

Week 2 EOC: Boston Consulting Group - Video Games

Video games impact the economy more than most people think. The average person plays at least one video games even if it’s just a mobile application. The market only seems to be rising overall.  “Market research firm Newzoo revealed today that it expects the global gaming market to be worth $99.6 billion dollars in 2016. That’s up 8.4 percent when compared to last year.” (MIKE MINOTTI, April 21st, 2016) (http://venturebeat.com/2016/04/21/video-games-will-become-a-99-6b-industry-this-year-as-mobile-overtakes-consoles-andpcs/).
People are spending more which makes it better for the economy and gaming industries can flourish. More people are gaming, there is less being bought, but the play time is exponential.“I think the industry is in a very good place,”said Handler.
“It’s evolving very differently than it was a cycle ago. People are playing fewer games, but they’re spending more time with those games and they’re spending more on those games [though downloadable content]. Today, its about people spending $ 100 on the game rather than $60 on the game. (Chris Morris, June 7th, 2016) (http://www.cnbc.com/2016/06/07/as-ea-approaches-video-game-industry-is-at-a-turning-point.html).
The more entertaining the games are, the more people are willing to go buy games and gaming systems. Xbox, Playstations, and PC’s are helping bring in the most revenue, although the mobile market is also taking over.“Newzoo predicts that “at this pace, global revenues will reach $107 billion in 2017” according to a release today. Last year, the company said that the market would be worth $102.9 billion by 2017.” (Collin Campbell, April 22nd, 2015) (http://www.polygon.com/2015/4/22/8471789/worldwide-video-games-market-value-2015). Revenues in Asia are increased with global gaming also the Chinese market has increased so much that it could overtake the United States, possibly even Japan, even though this seems unlikely. Some of the requirements in order to keep the game marketing business up is the competition are difficult, again the entertainment of the game, and the hardware for the games. Without the constant competing against other companies of trying to make new games, hardware, and consoles, an industry won’t be able to keep up with growing new generation and old generation of gamers. However the most important thing is to appeal to the customers of the younger generation since they are more likely to spend more.

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