...beginning when 8bit was cool and colorful games meant everything to the present where consumers seek better graphics, 3Dimensional gameplay and online gaming. The market for Video Game consoles has now become very wide, but at the same time Sony and Microsoft remaining the two main players of the market. So we could say the market runs on a duopoly system. Sony and Microsoft, the cutthroat competitors in this field have brought video-games to this level. They’ve always been competitors and went head to head with their products and upgrades to those products. For each new release by Sony, Microsoft had a close competing machine coming up, and vice versa. Through this project I’ve tried to do a comparative study and research on the two Operating Systems and the console Systems in a detailed manner. This analytic study covers a comparative study of the competing models by the two Gaming Leaders with respect to their technology, networks, marketing strategy, competing strategy, pricing and surveys from their users. Sony Computer Entertainment, Inc. (SCEI) A Japanese multinational video game company specializing in a variety of areas in the video game industry, and is a wholly owned subsidiary and part of the Consumer Products & Services Group of Sony. The company was established on November 16, 1993 in Tokyo, Japan, prior to the launch of the original PlayStation video game system. Sony Computer Entertainment handles the research...
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...Video Game Consoles Video Game Consoles Video Game Consoles Name | Varun Punjabi | Class | PGDM - Communications | Subject | Marketing Management | Roll No | 39 | Scope: The Indian video games sector in 2011 was driven by the urban middle class/upper-middle class population, who adopted both static and handheld games. Rising income levels, increased availability of international brands such as Sony PlayStation 3, Nintendo Wii and Microsoft Xbox 360 as well as growth in retail chains were primary factors driving the demand for video games in India. An industry worth 25 billion dollars globally, the 9th generation of video game consoles will see tremendous advances especially with the inclusion of virtual reality compatible hardware technology. ------------------------------------------------- ------------------------------------------------- Video Game Consoles: Interesting Trivia ------------------------------------------------- ------------------------------------------------- - 2 out of 5 gamers are women ------------------------------------------------- - 65% of US households have atleast 1 video game console ------------------------------------------------- - The average age for gamers is 32 ------------------------------------------------- - An average gamer spends 18 hours playing video games. ------------------------------------------------- - Sony Playstation 2 sold 138 million units worldwide making it the best-selling 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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...and it had a great stereo. The salesman had everything done and ready for me to sign. My father looked over the contract and noticed a “service fee” hidden in the price. According to the salesman, all service for the first three years I owned would be free. But of course the “free” service was paid for in advance. Today I am 37 years old, and there are still times I have to tell my father that he is right. At midnight on November 17, stores everywhere in America finally began selling the long awaited PlayStation 3, also known as the PS3. Across the country, people waited in line for hours, and even days in some cases, to get their hands on a PlayStation 3. In Kentucky, ardent gamers fired BB guns at people waiting in line in order to get to the PS3s first. Millions of Americans tried to get a PlayStation 3 on that first day; however Sony had only produced 400,000 of them. On average, an additional 100,000 PS3 systems have reached stores each week since November 17. They’ve been flying off the shelves as gamers rush to buy a PS3. The PlayStation 3 has been selling for between four to six hundred dollars in stores, and over two thousand dollars on Ebay. Other popular video game consoles such as the Xbox 360 and Nintendo Wii are available at much lower prices. So why are people spending so much on the PS3? The graphics and data processing capabilities of a PlayStation 3 far exceed any other gaming console or computer system...
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...An Analysis of the PlayStation Network Joe Student Date Business 508 Professor An Analysis of the PlayStation Network Sony Corporation is a well diversified company providing many complementary products and services. Not only does Sony offer electronics through its own website, it has a series of online products and services it offers to its users. The PlayStation Network, a part of the Sony Entertainment Network, is one of these many services. Through the PlayStation Network, owners of Sony PlayStation products can play games online with each other. Users can also purchase games and additional items through the PlayStation Network. Credit card information is stored in the network to be used for future purchases. Storing credit card information allows users to make future purchases very quickly, and possibly increases sales. However, its users entrust Sony to handle this information with care. In April 2011, the Sony PlayStation Network had a series of security breaches that not only compromised users’ login, password, and personal information, but also their financial information such as credit card numbers. The Sony PlayStation Network had to shut down completely and did not return fully for over a month. This paper will discuss the PlayStation Network and the recent security breaches. Despite the fact that the PlayStation Network has over 77 million online users, the system was compromised and Sony was unable to respond adequately to the problem. All companies...
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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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...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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...The Challenge Of Maintaining Greatness in the Gaming Industry Strategic Management Professor : Yuri Mishina 12-12-2013 1 Table of Contents Executive Summary....................................................................................................................................... 3 Industry Analysis ........................................................................................................................................... 3 Threat of New Entrants ............................................................................................................................. 4 Power of Suppliers .................................................................................................................................... 4 Power of Buyers ........................................................................................................................................ 4 Substitutes ................................................................................................................................................ 5 Degree of Rivalry ....................................................................................................................................... 6 Firm Analysis ................................................................................................................................................. 7 Company Strategy ....................................................................................
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...Five Forces Analysis of the Video Game Industry As in every industry, there are five competitive forces that determine the intensity of competition between the different players. These competitive forces are; the threat of entry of a new company in the industry, the threat of substitution by another product, the bargaining power of the buyers, the bargaining power of the suppliers, and rivalry among currently existing competitors. These competitive forces are easily seen in the video game industry, as there is already immense competition in the industry due to the similarities between the few major companies at play. Sony, Nintendo, and Microsoft are the three large players in the present day video game industry. Sony Computer Entertainment Inc. has been a dominant company in the industry for over a decade with the PlayStation 1 and PlayStation 2 platforms; however, it is struggling to stay at the helm of the industry due to the presence of these competitive forces. The threat of entry of a new company in the video game industry is a relatively weak competitive force for Sony. The video game industry is already dominated by three major players (Sony, Nintendo, and Microsoft), thus the possibility of a new entrant in the industry is very low. Nintendo was established well before Sony as a major player, and Microsoft came into the industry in 2001 with the original Xbox. When Sony came in with the PlayStation 1, they completely took over the industry and continued to dominate...
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................................................................................................3 Intro………………………………………………………………...............................................4 Relation to DB communications……..........................................................................................4 Features…………………………………………….....................................................................5 The Dashboard……….…………………………………………………....................................6 How it works……………………………………………………………………….………….6-7 Online Gaming……………………………………………………………………..……………7 The PlayStation Store………………………………………………………………….……...7-8 Sony is Hacked…………………………………………..……………………….……………8-9 The Return of PSN……………………………………..………….…………………...……9-10 Conclusion……………………………………………………………………………….……...10 Bibliography…………………………………………………………………………..…..…11-12 Executive Summary The PlayStation is the foundation of the PlayStation Network. So, this process basically started its reality transition in 1994. The PlayStation Network operates similarly to the definition of what database communications is. There are many features that make the gaming console itself, as well as the network, attractive. Sony collaborates with many other companies to make this product more versatile. The dashboard is similar to the Xbox Live’s in a sense that if gives the user total control but in its own unique way. The way the PlayStation Network actually works is not complicated. It is in fact very similar to a computer. The...
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...PLC Case Study: Sony Computer Entertaiment Inc. Nestor Herrera October 30, 2015 Sony Computer Entertainment Inc., is a multinational company that serves as a subsidary of Sony Corporation, with main head quarters in North America. Sony is responsible of delivering some of the most innovative and best selling products in the electronics market. For this case study, the main focus will be on one of Sony´s most successful brand, the Playstation, and how the company have manage the product life cycle of its Playstation products, putting an emphasis on the PLC of its first product, the Playstation 1. The case study will also evaluate the effectiveness of the strategies used to mantain the Playstation brand among the leaders of the market share by effectively managing their PLCs. The Playstation 1 - the Introduction process The irruption of Sony into what was then a very primitive video game market came in 1995 when they relased the Playstation 1 (PS1) in North America. The PS1 definatly had a huge impact in the whole video game industy as it was one the pioneers that helped the industry become what is now a multi-billion dolar industry that dominates modern entertaimet. Sony manage to differiante its new console from Nintendo, (who by far were dominaning the market at that time) who marketed themself as a more family-friendly entertaiment console. Nintendo has always provided Sony with some fierce competition, from the PS1's introduction untill the more recent years (2013-)...
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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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...Xbox One vs. Playstation 4 Media (Artifact paper) Mario Palomino Student ID: 1760440 BUSB 340 – Robert Liljenwall Due Date: February 23 2014 What hell is a Nintendo? I got my first video game console in the summer of 1991. My parents purchased it from SEARS for my birthday and at which point I had no idea what it was. A couple of the kids and their parents knew that it was and were shocked that my parents spend $100 dollars on something like that. It was still in the box until one afternoon I came home from school. I set it up in the living room, only room with a television. Popped in Super Mario Bros, this simple 8-bit game would change the entertainment industry. I did not become a fanboy until I attend Florida A&M. Besides my classes and football schedule, I usually spend my free time in my apartment. One of my friends back home told me about Microsoft’s Xbox gave gamers the ability to play against each other and they did not need to be in the same living room. Walked into a Game Stop and walked out with my first console since the Nintendo my parents got me so many birthdays ago. Once at my apartment, plugged everything in and started playing. Completely different from what I remember when I was eight years ago. Xbox became my gateway drugs, from hours of study, from the beating my body would take from football and boredom. History of Sony's gaming console Before Sony entered into the gaming industry they establish Sony Computer Entertainment (SCE) in mid-November...
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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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...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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