...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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...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 image that caters to the family and casual gamers that the Wii won over. The Playstation has the hardware to mimic the Wii’s functionality and take it to the next level. This combined with creative new ideas that are oriented with the family dynamic and entry level gamer in mind, Sony will have the ability to reclaim their position...
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...comparing the PlayStation 3 and Xbox 360. Starting with features they both have, the ps3 and 360 have, of course, exclusive games that can only be played on that specific system. For example halo is for the 360 and god of war is for ps3. They both have an internet browser and apps; they are Wi-Fi enabled meaning they can detect wireless internet. Through Xbox live and PlayStation network, they allow you to play with friends and meet people all over the world (the name tells what system has what). Now the PS3 and the Xbox 360 are generally made for the same they can do different things that set them apart. The ps3 has a Xross media Bar (XMB) which allows you to chat with friends while pausing the action in-game. This comes in handy when people message you while you’re in a good game and do not want to interrupt it. While playing users can earn trophies which so how bad ass you are. The trophies are ranked as follows: Bronze, silver, gold and platinum which can only be attain when you achieve all other trophies for the game. Keep in mind that some trophies are easier to get than others. While in-game the XMB can be used to invite players to your gaming session know as parties where you can play with or against your friends. When you are not in in-game the XMB allows the users to invite others up to six to video chat or voice with each other and text chat with up to 16 other people this can also be done during gameplay. Gamers can enjoy the PlayStation Store (PS Store) which has all...
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...wonderful game. Throughout history the games has changed in so many ways. Even though it has changed the principle of the game stayed the same and is still loved by people. James Naismith the creator of basketball was born and raised in Canada and the United States. Naismith went to college at McGill University in Montreal, where he became involved in athletics. He graduated in 1887 and was in the top ten percent of his class. Naismith was able to watch the game of basketball become a worldwide sport and watch the sport change from people throwing a ball into a basketball to players competing at a high level. He lived to watch first Olympic basketball game in Berlin in 1936. Naismith also was the athletic director at the University of Kansas and worked there for thirty-nine years (“Basketball,” 2007, pp. 69-72) (George, 2013, pp. 690-691). In 1891 Dr. Luther Halsey Gulick asked James Naismith to create a new indoor game, which was different from gymnastics and calisthenics. When the game was first created, players would bounce a soccer ball and pass it to try and score points by throwing a ball into a raised goal. That winter Naismith decided to create thirteen rules to set guidelines for the players. All the students who played the game wanted it to be called “Naismith Ball,” but he chose to call it basketball. Then championships were created and started to outburst in the country, while thew first was played in New York, 1908 (Applin II, 2001). Once the game was...
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... A new generation of video game consoles will be premiering shortly. The video gaming world is calling it “The Console Wars”. Although 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...
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...ALI FARHOOMAND NINTENDO’S DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY For some time we have believed the game industry is ready for disruption. Not just from Nintendo, but from all game developers. It is what we all need to expand our audience. It is what we all need to expand our imaginations. - Satoru Iwata, president of Nintendo Co. Ltd1 In the 2008 BusinessWeek–Boston Consulting Group ranking of the world’s most innovative companies, Nintendo Co. Ltd (“Nintendo”) was ranked seventh, up from 39th the previous year. 2 This recognised Nintendo’s significant transformation into an innovative design powerhouse that had challenged the prevailing business model of the video game industry. In 2000, when Sony, Microsoft and Nintendo (the “big three” of the video game console manufacturers) released their latest products, Sony's PlayStation 2 (“PS2”) emerged as the clear winner, outselling Microsoft’s Xbox and Nintendo’s GameCube. In 2006, a new generation of video game consoles was introduced by these players, precipitating a new competitive battle in the industry. Microsoft and Sony continued with their previous strategies of increasing the computing power of their newest products and adding more impressive graphical interfaces. However, Satoru Iwata, president of Nintendo, believed that the video game industry had been focusing far too much on existing gamers and completely neglecting non-gamers. Armed with this insight, the company repositioned...
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...……………………………………….……3 Industry analysis ……………………………..………………….……...…......4 Competitors strategy ……………………….……………………………………. Microsoft – A differentiator………………………….…......7 Sony – A differentiator ……………………….…………………9 Analysis of competition………………………………………………………11 Nintendo’s strategy …………………………………..……………………….14 SWOT ………………………….…………………………………………………….17 Recommendations …………….………………………………………………18 References ……………………………..………………………………………….20 Introduction The first video game was created in the 1960's. Half a century later, the industry of video games represents a 42 billion Pound industry. The recent significant increase in this industry is due to the growth of broadband, the adoption of more robust wireless networks and phones, and the consolidation of game developers and publishers. This global turnover is divided in two parts: the software component is worth (32 billion pound) and the hardware component is worth (10 billion pound). Some recent analysis shows that there is about 300 millions of players in the world. It is quite difficult to find the exact number because a game or a console can be used by more than one player. The Video Game Hardware market is dominated by three main competitors: Nintendo (49%), Microsoft (30%) and Sony (21%). While the video game software market is dominated by four companies: Nintendo (19%), Activision (12%), Electronics Arts (11%) and Konami (5%). These figures indicate that Nintendo is the leader on the video games market, on hardware...
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...handheld system Home console | Playstation | Playstation 2 | Playstation 3 | Playstation 4 | Launch Price | 299 | 299 | 499 (20GB)599 (60GB) | 399 | Price drop | | 199 | 299 | | Handheld system | Playstation Portable | PSP Go | Playstation Vita | Launch Price | 249 | 249 | 299 | Price drop | 129 | 149 | 199 | Pricing Strategy Market skimming Sony usually drops price of their products after one or two years. For exemple: PS2 (299->199), PS3 (499->299), PSP (249-129), PSP Go (249->149), PS Vita (299->199) This help them to secure their market share and to introduce new products, especially when their new product’s price is usually very high. Loss Leaders Pricing for home console product line Loss leaders pricing strategy is a very special point of Sony. They sell their hardware product at a price below the cost, even the production cost, intentionally take loss to gain market share. But they take profit by selling games and movies. Let’s assume that the profit on any one game averages $15.00. For every console sold, the company expects to sell an average of 60 games over the consoles life. This means the profit on games per console is $900.00. In addition, the loss on each console sold is $450.00 With this strategy, Sony gain a big success for PS2. but we can’t say the same for PS3. Because of high price, only 80 million PS3 were sold (2/11/13), compared to 155 million PS2 (31/3/12). After the failure, Sony CFO claimed that the PS4 wouldn’t be “a loss-leader...
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...Executive Summary In 2008 the video game industry is dominated by three major players, there's Sony with its PS 3 launched by the end of 2006. Then there's Microsoft with its Xbox 360, launched in the end of 2005; and finally Nintendo with the "Wii" in late 2006. These three players are competing to gain market leadership in the game console industry. The video game industry has been marked by quick and frequent changes of fortune amongst the various players in the market. The market is characterized by rapid growth as well as unexpected down turns such as the one in 1983 where the industry lost 97% of annual sales volume in 3yrs. The industry exhibits five to six year cycles of competition which concur with advancement of underlying technology. Nearly all-technological leaps from one generation to the next are marked by a change in leadership except from the PS to the PS2 when the lead was held by Sony. Currently, the market is led by Nintendo which has managed to overthrow both Sony and Microsoft despite having a console which is significantly less technologically advanced. Analysis How attractive does the video game industry look in late 2008? There is a low risk of potential entrants due to high sunk costs (as demonstrated by Atari's "ET" flop), large capital requirements and very high economies of scale needed especially since product is sold at very low markup. The video game industry appears to have a solid base of loyal customers and is recently increasing in size...
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...number and variety of different types of products, including their office software, Zune (digital music player), CRM applications, sever and storage software, and last but not least XBOX as well as, the XBOX 360 video gaming consoles. Now that we are entering 2013, XBOX has stood by idle, in the portable gaming device market as we watched Sony & Nintendo dominate their way through this particular gaming market. Well now!! Microsoft has been absence for far too long, and it’s time to make our presence felt, which is why we have developed a brand new totally portable, online gaming experience. By venturing into this realm of gaming this will open doors as well as allowing us a huge market and opportunity to grow within. While the portable game industry is still led by Nintendo and Sony, mobile phones and other portable devices are quickly adding to...
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...DISRUPTIVE STRATEGY: IMPLICATIONS FOR THE VIDEO GAME INDUSTRY Summary and Analysis by Aris Metin Burning Questions: 1. Has Nintendo really disrupted the industry and changed the name of the game? 2. Would this disruptive transformation of the video game industry leave the competitors in the cold? 3. What course of action was available to them? Disruptive Technology – coined by Clayton Christensen, a Harvard business professor – leading companies , despite having followed all the right practices, still lost their top positions when confronted with disruptive changes in technology and market structure. – Failure to meet the technological demands of customers in the future – An innovation that used a “disruptive strategy’ rather than a “sustaining strategy” or revolutionary strategy KEY PLAYERS IN THE VIDEO GAME INDUSTRY Sony (Playstation), Nintendo (Wii) and Microsoft (Xbox) SONY – introduced Playstation (PS), attracted late teens and young adults with disposable income, offered more sophisticated and more violent games; backward compatibility (PS1, PS2 and PS3), can also play CDs and DVDs. Also launched Playstation Portable (PSP) 1. PS3 – a multimedia entertainment hub; allows users to chat online, listen to music, view HD animations 2. results were disappointing because of Supply problems and the high price tag SONY produced 40% of its components in-house. Massive costs of investing in the game console equipped with Blu-ray and Cell chip ...
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...The Analysis of PlayStation of SONY Corporation NAME: Mei Zhang Yixuan Yao Zhaorui Liu Yong Zhang In this case we choose the SONY Corporation. SONY Corporation (NYSE: SNE), commonly referred to as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues. SONY is one of the leading manufacturers of electronics products for the consumer and professional markets. The Game is an important industry, SONY launches "PS3" in the middle of 2006, and it also strengthens self-developed video games software. We focus on the PlayStation of SONY Corporation to analysis the market structure and the competitors (XBOX of Microsoft, WII of Nintendo) A. Nature of demand 1. The buyers currently go about buying existing products of SONY considering the number of stores shopped, the consumers will feel that the more stores sell one item, the more popular the product is. For example, there are many different types of SONY Digital Single Lens Reflex Camera, but most stores only sell α35,α390, buyers may propensity to buy this two types. Buyer will buy SONY`s products when they are sold in different stores. The buyers also consider the industrial sources, as a consumer, we all want to the best raw material, intermediate material and final material, thus the industrial sources is the key factor. The display screen...
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...VIDEO GAMES CONSOLE The games console industry is divided into three periods. The first period is the growth of the industry to the advent of the 32 bit era. The next period is the developments and trends during the PlayStation era and the third is the likely development of the industry over the next few years BRIEF HISTORY OF THOSE PERIODS and THEIR REVENUES (The Evolution of the Game Console Industry) In 1994 , the first time that consumer electronics giant Sony had bravely attempted to enter the highly competitive games console market. Going under the catchy, self–explanatory name PlayStation, this 32–bit, CD–based system hit Japan in December and faced tough competition from 'The Big Two' in the form of Sega's fundamentally similar Saturn, and Nintendo's upcoming Ultra 64. By May 1995, barely six months after the release of PlayStation, over 1 million Japanese gamers had become converts. Games like Toshinden, CyberSled, Jumping Flash!, and a host of other, decidedly more obscure titles (our favourite is Chou Aniki – Kyuukyoku Muteki Ginga Saikyo Otoko – literally 'Super Older Brother – The Galaxy's Absolutely Invincible Strongest Man') helped to propel sales, impressing players with their advanced 3D visuals and diverse gameplay. By October, worldwide PlayStation shipments had reached 9 million, and with the arrival of huge sequels such as Tekken 2, Ridge Racer Revolution and Wipeout 2097. In a year that saw cosmologists announce that the expansion...
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...does the Wii’s success has strategic merit Nintendo was nt just a lucky adventure. They had such a big success because they focused on customers. Before Wii: 2 groups were targeted 18-35 years old young adults and children and teens. Nintendo changed this and extended to people of all ages. They took a step back from technologies and focused on the fun aspect of playing video games. By creating the Wii fit and the balance board they were able to reach out to every one (exercising is more fun). It became the reason for family games at night and also a reason fr exercising (the console similar to remote control allows to play box or tennis for instance). They didn’t compete with Sony and Microsoft, they tried to differentiate. BE UNIQUE Q2: Has Nitendo put the fad question to rest? State a case as to why the Wii is or is not here to stay Nintendo managed to effectively target a large population segment of common gamers that are not going to disappear soon. Although Nintendo is not out of the red from becoming a fad, increasingly adding supplemental products has the ability to make them last. Games are differentiated for those who use the Wii just as a console and for those who are using this as an entertainment tool with a scope (be fit or play with family and friends) The clearest indicator the Wii is here to stay are the imitation effects of other gaming companies. The PS3 Motion is a clear imitation of the Wii and Microsoft Kinect definitely took some hints from Nintendo...
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...and less relevant for professional marketers. That’s because in the real-time, digital world, the intersection of the 4 Ps – price, product, promotion, and place is constantly changing. New technologies allow and even require marketers and advertisers to understand consumer preferences and environment in real time to get the media exposure they desire. Although the core concepts of the 4 Ps are still essential, it’s clear that the marketing industry need a new guide to develop strategy and measure outcomes in the digital world. In fact, relevancy, not reach, is the new number of the game. Yet marketers have the same need that the original 4 Ps addressed identifying the core elements and principles that must be managed and optimized in order to drive a core success factor: relevancy. As per my opinion, the 4 Ps should an upgrade with the following new version:- 1. Preference: Modern marketing practices are founded on the belief that preferences matter- that what a consumer cares about has a noticeable impact on their attitude and activities. Only by understanding and acting on these preferences will it become possible to ensure relevancy for any given viewer. For instance, if I learn that consumer A prefers to view videos rather than read email, is primarily active at night versus the day, likes electronics products, and enjoys visiting stores over purchasing online, I...
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