Premium Essay

Sony Playstation 3

In:

Submitted By crixus
Words 10292
Pages 42
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 lines and sold-out stores were typical at the beginning of each new generation of video game consoles. What made the scene outside of the video game store in Manhattan quite surprising, though, was that the hopeful customers were not waiting in order to purchase a new
PlayStation 3 (PS3) game console from Sony, the undisputed market leader from the previous two generations of video game

Similar Documents

Premium Essay

Sony Playstation 3 Case Study

...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...

Words: 1138 - Pages: 5

Premium Essay

Sony Playstation 3: Game over?

...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...

Words: 453 - Pages: 2

Premium Essay

English Comp

...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...

Words: 995 - Pages: 4

Premium Essay

Market Case 1

...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...

Words: 9622 - Pages: 39

Premium Essay

Internet Technology, Marketing and Secuirty

...convenience several problems with internet security occur on a daily basis. “Individuals, Businesses, and government agencies are all vulnerable to computer crime. Computer hackers-unauthorized users-sometimes work alone and sometimes in groups. Sometimes hackers break into computer systems just to show that they can do it; other times they have more sinister motives.” (Boone 509) In April 2011 Sony, a leading manufacturer of audio, video, communication and information technology products, experienced a security breach that effected seventy seven million Sony users. Throughout the years Sony has experienced several hacking incidents. One of Sony incidents was when George Hot, also known as GeoHot, cracked security on the Play Station 3 and then gained access to pirated games. Sony pursued legal action against Hotz, which then led to another hacker joining Hotz against Sony. The hacker “Anonymous”, which had previously hacked Gawker, Amazon, MasterCard, and computer security firm HBGary, released the following threatening statement on its site: “Congratulations, Sony” You have now received the undivided attention of Anonymous. Your recent legal action again our fellow hackers, Geo Hot and Graf Chokolo, have not only alarmed us, it has been deemed wholly unforgivable. “You have abused the judicial system in an attempt to censor information on how your products work. You have victimized your own customers merely for possessing and sharing information, and continue...

Words: 1353 - Pages: 6

Premium Essay

The Movie Industry

...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...

Words: 1998 - Pages: 8

Premium Essay

Sdasda

...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 to consider...

Words: 852 - Pages: 4

Premium Essay

Ps4 vs Xbox One

...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 Gamescom (Rivington). The PS4 release date in North America and Canada is November 15, 2013, and November 29, 2013, for Australia...

Words: 2438 - Pages: 10

Premium Essay

Sony Strategy

...Sony Corporation and the Video Game Console Market: 1 A Competitive Analysis By Ryan Bogner, Peter Hung, Guan Wang, and Steven Wang This report evaluates Sony Corporation’s strategy in the console gaming market from the top-down perspective of the 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...

Words: 5489 - Pages: 22

Premium Essay

How Sony Playstation Has Applied the 10 Operation Management Strategies

...How Sony Playstation has Applied the 10 Operation Management Strategies Kenneth Turner GM583 Operations Management June 19, 2011 Table of Contents Abstact 1. Background 1. Problem Formulation Discussion 2. Analysis 5. Reflection 7. Recommendation 8. Appendix 9. References 10. Abstract Even though the Sony Playstation is a leader in their market, they still have the problem of the Japanese yen being more valuable than their foreign country’s currency, and the location of their manufacturing facilities being too far from their customers. This contributes to the increased cost of quality of them having to transport the materials, and finished products to and from the manufacturing facility. Also the cost of imports and exports is not as valuable for them because of the value of the American dollar, or the European pound compared to the Japanese yen. (Sony Corporation SWOT Analysis, 2010) As an Operations Management Consultant, I have been asked to present a paper to Sony Corporation on how they have applied the Ten Operation Management Strategies to successfully achieve their financial, social, market place dominance, cultural influence, international presence, and successful application of quality principals to successfully achieve their objectives in America. Background The Sony corporation is one of the largest consumer electronics makers...

Words: 2308 - Pages: 10

Premium Essay

Wii Preparation

...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...

Words: 635 - Pages: 3

Premium Essay

Strayer Bus 508 Assignment 4 (Diversification)

...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...

Words: 1593 - Pages: 7

Premium Essay

Xbox vs Playstation

...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...

Words: 1359 - Pages: 6

Free Essay

External Intrusion of the Playstation Network

...External Intrusion of the PlayStation Network Lecola Pierce Strayer University Professor Curtis Bunch Feb 6, 2015 External Intrusion of the PlayStation Network Sony has had recently troubles with hackers intruding into their system and threating all Sony users with the capability of stealing all users’ information, but there was a case on April 20, 2011 that had all Sony employees in shock. One of Sony’s bestselling products, the PlayStation, was taken offline after their company discovered there was an intrusion in the PlayStation Network. For those who are not familiar with the PlayStation Network this is where most of the PlayStation business is done. In the PlayStation Network customers are all registered into this network and most have sensitive information uploaded onto the network including payment information. Hacking this interface would allow access to all users’ personal information which is considered to be a serious problem since one out of four homes either have a PlayStation 3 or PlayStation 4, which all must be registered onto the system before activation. The hackers were able to gain access to three separate gaming systems including PlayStation, Oriocity, and Sony online gaming. Before Sony was able to shut down their systems approximately over a million credit card numbers were reported stolen. It’s not certain exactly when the hackers gained access to the Sony Network but Sony first announced the system had been hacked on April 22, saying an external...

Words: 794 - Pages: 4

Premium Essay

Bringing Video Gaming and Bd-Live from Being an Entertainment Tool to a Becoming a Distance Learning Tool

...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...

Words: 3146 - Pages: 13