DFC has two major concerns for the video game industry: One, consumers have a rapidly increasing abundance of choice among low cost games and other entertainment products; and two, the five-year console model that has driven industry growth in the past is currently not working for Sony and Microsoft.
http://www.gamasutra.com/php-bin/news_index.php?story=25223
Sony and Nintendo: Microsoft's two primary competitors in the Entertainment & Devices sector are the Nintendo Wii and the Sony Play Station 3. Following the announcement of the cutting-edge Kinect peripheral device to the Xbox 360, Sony plans to release Move, its own body movement-sensitive add-on to the Play Station 3, while Nintendo plans to release a new version of its DS handheld device that does not make use of 3-D goggles[32].
http://www.wikinvest.com/stock/Microsoft_(MSFT)
In my opinion, PS3 is the star. The console has high market share, and is in high demand by it's consumers. It also has high market growth. The product has made significant progression, getting increasingly slimmer and more compact. And now it has gone wireless, using facial recognition, I believe, with the just released Play Station Move.
Question Marks are cell-phones with video game compatible platforms. The amount of progress these have made is unbelievable, and especially considering the very quick time span. Within about 2 years, they have publicized touch screen availability for the majority of customers. Whereas before, this was a commodity offered only at a steep price point, and at one time, known exclusively as an iphone feature. Now, video game compatibility may be the next era for cell phones, or smart phones. However, currently, despite their high growth rate, a low market share plagues these devices.
the cash-cow would be definitely the Wii. The growth rate of the Wii system is significantly low, although the market share remains fairly high. It is still consistently purchased by consumers, but when was the last time a new installment or upgrade was made? From the beginning, the Wii exceeded expectations, and that was probably the issue. Too much too soon. But, for now, they are still selling successfully.
The dog, I'm told, is the X-Box. Before recently, I'd agree, but their new X-Box Kinect is probably going to shoot them up to cash-cow status, if not star. This new system enables literally hands-free controlling. The use of facial recognition makes your body the controller, possible with the help of movement sensors in the console. This is definitely quite a breakthrough, that is, in my opinion, going to be a big commodity very soon.
http://www.oppapers.com/essays/Competition-In-The-Video-Game-Console/209271
http://www.wikinvest.com/concept/Game_Consoles_Wars:_Xbox_360_vs._PS3_vs._Wii
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