Week 2: Boston Consulting Group

The first console I choose was the PS4. "The success of the PS4 began when Sony revealed the console's retail price at the Electronic Entertainment Expo (E3) in June 2013. The PS4 had an initial price of $399, much cheaper than the initial price of $499 for a 20GB PS3 or $599 for a 60GB PS3 model. Microsoft announced the Xbox One would retail for $499 at a press event the day prior to E3. The higher price for the Xbox One was due to the bundled Kinect, which Microsoft no longer includes as part of the standard Xbox One model." http://www.ibtimes.com/ps4-vs-xbox-one-sony-has-sold-302-million-playstation-4-consoles-nearly-double-2199807. This was a cash cow because they made so much money and still making more till today.

 The next console I chose was the Xbox. “Microsoft has just announced its fourth quarter and full-year fiscal results for the period ended on June 30, and the numbers showed some positive sales growth for the Entertainment and Devices division, which houses the Xbox business. For the fourth quarter, sales grew by 20 percent, totaling $1.78 billion and for the year, revenues climbed from $8.92 billion to $9.59 billion. While sales were up, profits were actually down for both the fourth quarter and the fiscal year. Q4 saw a net loss of $263 million (as compared with a net income of $11 million a year earlier). On the bright side, the full year finished in the black with total income of $364 million (down from $1.26 billion a year ago).” http://www.gamesindustry.biz/articles/2012-07-19-xbox-completes-another-profitable-year-as-xbox-live-grows-15-percent This is a star because it has generated so much money and still is to this day.

 The last console I have chosen is Xbox one.  “It may all seem like doom and gloom for the machine and its makers, but look beyond the heavy cash losses and you’ll find that actual sales of Xbox One consoles have been pretty sweet. On the whole, Redmond shifted a sizeable 11.7 million consoles during the recently ended fiscal year, which is a solid improvement on the 9.8 million chalked up the year prior. On the whole, revenue came in at $1.7 billion which is hardly a figure to be sneezed at.” http://www.modernreaders.com/cash-cow-fat-chance-xbox-one-costs-microsoft-400-million/9249/ed-jones. This is a cash cow because it has generated so much money and still is.