...9-508-076 REV: APRIL 14, 2008 ELIE OFEK Sony PlayStation 3: Game Over? [W]hen you look at the history of the video game industry since the PlayStation was launched back in 1995, we were able to take the leadership position very quickly with the PlayStation. With PlayStation 2 we have more than 110 million gamers and consumers enjoying the PlayStation 2 on a worldwide basis. And I think we have a very loyal following for the PlayStation family of products. So with the PlayStation 3, I believe that we are going to be able to quickly take the leadership position once again and maintain that position for a very long time. — Kaz Hirai, President and CEO, Sony Computer Entertainment of America, November 17 20061 It was a picture that was reminiscent of the launch of the original PlayStation nearly a dozen years before. Some eager customers had arrived as early as 6am and from as far as New Jersey to a video game store in Manhattan with the hope of purchasing one of the newest and most sought after video game consoles. By 9am, the number of customers waiting for entrance to the store exceeded 100 and the line extended down the block. One customer in line had been searching stores across the region for two weeks in order to find a console for her brother’s twenty-fifth birthday. A twelve-year-old and his grandmother were visiting their third store in search of the new console. “I just hate what you have to do just to get one,” the boy said.2 In one sense, long...
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...Marketing Plan: Sony Playstation 3 Brian Moats A marketing plan focusing on Sony’s Playstation 3. Introduction to Marketing Business 120 4/13/2008 Executive Summary This marketing plan is looking at Sony’s Playstation 3 (PS3). This powerful piece of hardware is the cutting edge of gaming entertainment. The PS3 has been out for a little over a year, and in that time, it has proved to be a hardcore gamers dream. Sony got into the console gaming market in late 1994. The concept for the original Playstation (it was under a different name, SNES CD) was actually brought up in a joint partnership with Sony and Nintendo in the late 80’s; however, when the time came to announce their new hardware, Nintendo re-read over their earlier contract and found the agreement to no longer be satisfactory. As a result, Sony took all the research they had done and began work on the Sony Playstation. 2 Table of Contents Situation Analysis .......................................................................................................................................... 4 Internal Environment ................................................................................................................................ 4 Key Executives ....................................................................................................................................... 4 Board of Directors ........................................................................................
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...Brief Case: Sony Playstation 3: Game Over? Backgrounds: The origins of the modern video games was the proliferation of pinball machines and jukeboxes and other games at the same style in the 1930s and 1940s The electromechanical games were mostly based on physical activities like baseball, car racing and horse racing. The idea for playing video games on home television sets came in September 1966 from Ralph Bear. In 1972 the first home video game console, the Odyssey was launched whit 16 pre-programmed games and a retail price of $99 In 1972 another person realizing the commercial potential for the video games was Nolan Bushnell, and later in the 1970s, Bushnell and the company he helped to found, ATARI, would become major winners in the beginning of the game industry. Analysis SWOT: Strengths. - The game industry have a lot of innovation some always have a star products and a very good sales and whit a really huge market. Weaknesses.- For me the games industry is a very competitive business because have three powerful companies Sony, Microsoft and Nintendo and whit a little advantage one company can have a victory like Microsoft when launched the xbox360 a year before the other firms and whit that could get a lot of sales. Opportunities. - The evolution of the industry do not have limits like the wii and the kinect that this option of video games use a control that perceive the moves of the player and whit this innovation have a more and more clients of this new...
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...Sony Playstation 3 Case analysis I. Improving Sales In the time since the release Sony has made numerous attempts at turning around sales. One of the biggest moves was to drop the price drastically. This gave a lot of consumer’s confidence to spend their money on the system. Some consumers rationalize the purchase as a reasonably priced Blu-ray DVD player. Sony also introduced a new peripheral that emulates a lot of the functionality of the Nintendo Wii’s “Wii-mote”, which will most likely sway new buyers away from Wii. Sony has also built a library of very popular games that was a major weak point at the time around release. While many of these moves are a step in the right direction, they were almost expected. For Sony to truly bring back the following they once had with the Play Station 1 and 2, they need to go back to the fundamental mentality of game content. Many of the popular games are now released for all three systems (PS 3, Xbox, Wii), which makes the unique value of having PS3 limited. Sony needs to help developers create highly unique and innovative games that are exclusive to the Playstation 3. While there are a handful of name titles that are sole residents on the PS 3, they do not have the ability to build the brand loyalty in game products that PS 3 needs to convert consumers. Wii has also created opportunity in the market, as they have expanded the consumer market drastically. Sony needs to capitalize on this by creating an alternative brand...
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...Comparing Xbox 360 vs. Playstation 3 There are many differences between Playstation 3 and Xbox 360. They are both 7th generation video game systems and share many titles together, but as a console they are two different machines. The Playstation 3(PS3) is a product from Sony that has had a few different models released going from a big system to a much slimmer version that is now on the market. The older versions from the first few releases could play Playstation 2 games in addition to being able to play CD’s, DVD’s, Blu-Rays, Playstation 1 games and of course Playstation 3 games. The newer models lost the compatibility with Playstation 2 games, but still play all of the other forms of media. The online store with Playstation 3 is updated every Tuesday for the most part and is a free services to owners of the PS3 and allows players to download extra content for games, updates for games, strictly downloadable games that were not released on any other media. PS3 owners are also able to connect to many different applications through the software on the PS3 such as Netflix and even running a media center from your home computer. The PS3 also has an option to put downloaded Playstation 1 games onto the Playstation Portable, which is a handheld video game system from Sony. Although how good a video game plays is an opinion many of the PS3 exclusive games are highly rated among critics and overall the PS3 has a fair library of games to choose from. The system used to be a very...
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...PBM Case Analysis Sony Playstation3 Abhishek Ram B11064 Piyush Pandey B11097 Mayank Anand Jha B11091 Problem Statement: In spite of entering the video game console market in the late 90s, Sony had been able to become the market leader. Its products Playstation and Playstation 2 had been very successful. But its console Playstation 3 was not performing well. Playstation 3 was touted to be superior in technology compared to other consoles. It was powered by Cell Broadband engine which increase speed greatly. It also had Blu-ray disc player which enabled storage of large amount of data of high definition content. Due to these features price was kept in the range of 499-599. Microsoft had entered the gaming market with its own console Xbox. Microsoft was able to use its expertise in software development to develop its own gaming titles and also partner with third party developers. It was priced in the range of 299-399.Its other competitor Nintendo had come up with its gaming console Wii, which was priced at 249. Even though it was observed that its graphics were inferior to that of Sony and Microsoft’s, it was able to detect arm and hand motions which provided a realistic experience. This was very much prized by the consumers, which was reflected in its sales. Gaming titles for PS3 were available at 59.99 whereas for Wii it was available at 19.99-49.99 and for Xbox at 19.99-59.99. There was a dearth of gaming titles for PS3. Hence, Sony needed...
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...the battle of video game system superiority has been going on for a while now, this year promises to be on a larger scale than the previous wars. Sony, the maker of PlayStation, and Microsoft, the maker of Xbox, are expected to release their next-generation systems in November. This report will be a comparative analysis of the soon-to-be-released Xbox One and PS4. The purpose of this report is to compare both systems on their specific features. The goal is to find out which system is the best when comparing both capabilities and value. This comparative analysis is intended to help customers decide which system is better suited for their needs. This report covers: * The general description of each product * Accessories * Specifications * Exclusive games for each individual system After extensive research, I found that both systems are fairly comparable from a technical standpoint. However, I recommend the PS4 over the Xbox One based on value and services. General Description of Products PS4 Mark Cerny, lead architect of the PS4, said the development of the eighth-generation console began in 2008 (“PlayStation 4”). The PS4 is developed and created by Sony Computer Entertainment (“PlayStation 4”). On February 20, 2013, Sony announced that the PS4 would be the successor of the PlayStation 3 during a press conference at Gamescom (Rivington). The PS4 release date in North America and Canada is November 15, 2013, and November 29, 2013, for Australia and Europe...
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...Technology-enhanced teaching and learning Abstract: To some parents and educationist, video gaming has long been associated with wasting time. The interactivity and connectivity of the sixth and seventh generation video console has resulted in the introduction of the use of motion as input, and IR tracking and wireless controllers and 3D together with connectivity among the different console users in a network. This paper discusses the application on how the sixth and seventh generation video game console can be adapted to deliver vocational instruction through the gaming consoles. Apart from the video game console we would also be discussing on the use of the BD-Live feature on the BluRay disc. Using the case studies of Xbox 360, WII, Play Station 3 and BD-Live, we would like propose how video game and BluRay consoles can be used to deliver vocational education through the distance learning mode. The advent of the internet, motion technology and 3D technology, would mean enhanced educational content can be delivered to students in a more effective, expansive and entertaining manner. The discussion of this paper will benefit the makers and software engineers of video gaming and BluRay consoles by opening their products to the educational market while distance learning instructors will benefit with new forms of content delivery. 1 Introduction Video gaming has long being associated with wasting time to many parents and educationist. Contrary to popular thought, McGonigal (2011) reported...
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...entire corporation. 1 Executive Summary Sony’s current strategy in the video game console market is simple: use the technologically superior Playstation 3 as a loss leader to introduce the Blu-ray optical drive2 into consumers’ homes and leverage that market penetration to drive content sales once Blu-ray is established as the de facto standard for optical storage. It is therefore in Sony’s interest to reach the tipping point for market adoption of Blu-ray as soon as possible. To increase the rate of Blu-ray adoption in the market, we recommend that Sony adopt a “good-better-best” strategy, whereby Sony produces discounted and premium versions of the current Playstation 3 for sale to consumers. This strategy will encourage price-sensitive customers to purchase Playstation 3 consoles without marginalizing power gamers. Nintendo and Microsoft will most likely respond to this strategy with differentiation rather than price competition. If Sony reinforces this strategy with coherent marketing and intellectual property strategies, it can increase Blu-ray adoption rates and make it more likely that the format will be adopted as a standard. The Market for Video Game Consoles is Growing, but Competition is Fierce The market for interactive video entertainment is growing; this market grew four percent over the same period two years ago. 3 However, all players in the market are facing increased competitive pressures. Substitutes for console gaming are growing rapidly (such as massive...
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...Question 1 How structurally attractive is the video console industry in 2008? 1. There are three great players already in the market, which are Sony with its PlayStation 3, Microsoft with its Xbox 360 and Nintendo with Will. All three players are striving for market leadership in the game industry. New entrants into the video game market is difficult because of the huge previous investment and the saturated market. 2. With the Wii outselling the PS3 2:1, it will be difficult to compete against anyone. According to exhibit 2b, Nintendo is the only company that is still making a profit, while Sony and Microsoft have negative going margins and profit. 3. There is still an enormous potential customer in the videogame market. 4. The industry is considered by the uncertainty of the competition and technology. 5. Online gaming was another prominent feature of consoles. A user could play multi-player videogames against friends over the internet. Online gaming will improve the player’s enthusiasm and interest of the game. 6. These three companies have different consistent price to provide the best cost value. Moreover, each firm chose a different strategy of product differentiation, led to higher conversion cost and reduced the level of competition. Therefore, we can conclude that the video game industry was a rapidly growing sector with a small number of competitors and a huge potential for profits. Question 2 What are the most important lessons...
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...STRATEGIC MANAGEMENT ASSIGNMENT # 5 BLUE OCEAN STRATEGY October 24, 2014 Case Study Question 1 Critically analyze the case. Solution 1 In this case study, the author has discussed different methods and strategies which global firms are adapting to achieve success and to grow exponentially in their relevant industries. This article has focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to define the environment a firm is operating in and to figure out whether they are creating value for the firm or not. Blue Ocean Strategy is basically to create new uncontested markets solely through innovation and creativity where demand is created and derived from the market. Whereas Red Ocean refers to competing in the existing share of market with your rivalry firms within set boundaries to gain a bigger portion of the pie. Researches done on various firms following the Blue Ocean strategy have shown that firms which have invested and focused on areas which customers value the most have achieved huge profits mainly through cost leadership. Red Ocean strategy offers high value at a higher cost or can offer low value at a lower cost, this is a tradeoff where the Blue Ocean strategy has an advantage as its purpose is to create value and offer newer products/services which have not been previously introduced in the market or to a specific untapped market segment. Blue Ocean strategy not only requires technological advancements but also...
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...is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. Marketing The strategy for marketing consoles is based on: – Better technologies/graphics Ex: HD, Blue Ray and 3D – Better games Ex: FIFA, Halo and Mario Production • Production started in the US then moved to China and Japan. • Development is expensive but the consoles cost little to produce. • The longer a product is sold the more profitable each sale. Competition • As the market became more profitable: • Computer companies began investing in the market. • Sony created it’s famous PlayStation • Microsoft introduced the Xbox and Xbox live. Growth and Profit Strategies Red Ocean “Bloody competition to take a larger share in the market” Blue Ocean “Why compete when you don’t have to ?” Red Ocean § Basis of competition is trying to get a bigger share in the same defined market. § Boundaries are defined and accepted. § Competitive rules of the game are well-known and predefined. § example. Blue Ocean § All...
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...XBOX vs. PlayStation Kathryn Davis COM 170 August 7, 2013 Alfred Chavez Xbox vs. PlayStation There is an age old debate about which gaming system is the better one, Xbox 360 or PlayStation 3. It all depends on one’s preference. There are advantages and disadvantages to each gaming console. If any gamer was to be asked which gaming console, Microsoft’s Xbox 360 or Sony’s PlayStation 3, they prefer, there is likely to be a heated debate without any clear answer and mostly fans loyal to their brand. Both the XBOX 360 and PlayStation 3 have extraordinary media capabilities. Netflix and HULU Plus are just some of the apps that are available on the Xbox and PlayStation. Not only are both systems able to instantly stream and watch movies and TV shows, they can browse the internet and watch videos on YouTube, as long as they are connected to the internet. Although both gaming systems were made to primarily play video games both are able to transform into DVD and CD players. Like most media devices today, both the XBOX 360 and PlayStation 3 play movies and games in High Definition as long there is an HDMI cable available and a High Definition TV. High Definition is what makes the games and movies seem real and so appealing to people other than gamers. Sony and Microsoft have a loyal, hardcore fan base and both companies are always trying to please their fans and come up with the next best thing. After the Nintendo’s Wii came out, Microsoft and Sony pulled out the big guns to compete...
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...XBOX 360 VS Playstation 3 Introduction There is always a fude going on between witch console is better, between the Xbox 360 and playstation 3. Both are great systems and that makes it hard to tell which is truly better. The playstation 3 is made by Sony where as the Xbox 360 is made by microsoft. Sony has a wide range of electronics and so does microsoft. So both systems come from an amazing background. It is without a doubt going to be a close race between the Xbox 360 and the Playstation 3. Literature Review There is a website called gamer.blorge.com and it really breaks down the system fude. The article goes over 6 specific catagories that are very important to determine which is better. The catagoies are Design, Fetures, online, Graphics, games, and value for money. I think this article does a great job on how they determined which console is better. A second artice i found is called the great debatemon a website called alteredgamer.com. It Pretty much gives you the breakdown on what each console has to offer. Like which Xbox 360 to buy and playstation 3 to buy. In each Paragraph it talkes about what each type of Xbox 360 and Playstation 3 has to offer. It also does a quick comparison of the two consoles. Third article is Hardware throwdown on IGN.com. This article talks about what is on the inside of the two consoles. Like the CPU, GPU, RAM, hard drive, disc drive, video support, etc. All of these things come in to play when deciding on which console...
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...A Case Study With Sony On Penetration Pricing As Global Pricing Strategy Meaning of Penetration Pricing This is a marketing strategy used by firms to attract customers to a new product or service. Penetration pricing is the practice of offering a low price for a new product or service during its initial offering in order to attract customers away from competitors. The reasoning behind this marketing strategy is that customers will buy and become aware of the new product due to its lower price in the marketplace relative to rivals. It can often increase both market share and sales volume. Additionally, the high sales volume can also lead to lower production costs and higher inventory turnover, both of which are positive for any firm with fixed overhead. The tagline “special introductory offer” is the classic sign of penetration pricing. The aim of penetration pricing is usually to increase market share of a product, providing the opportunity to increase price once this objective has been achieved. Penetration pricing is, therefore, the pricing technique of setting a relatively low initial entry price, usually lower than the intended established price, sometimes lower than the costs too, to attract new customers. The strategy aims to encourage customers to switch to the new product because of the lower price. Penetration pricing is most commonly associated with a marketing objective of increasing market share or sales volume. In the short term, penetration pricing is likely...
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