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Sony Playstation

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Submitted By Minal
Words 602
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Background

• The global video game market was dominated by two seemingly invincible giants: Nintendo and Sega. Then came PlayStation – and everything changed!

• Sony entered the video game market in 1994 with a bang and conquered the market with a profit of 70 million within 2 years Sony launched PlayStation in Japan in December 1994 and in United States in 1995; within two years of launch, PlayStation revenues reached $700 million with profits of $70 million

■ Sony redefined the market to include customers that Nintendo and Sega had ignored. ■ It made technology choices that both enhanced the performance of its hardware and recast the economics of selling software. It designed a tough-minded approach to innovation that helps its developers churn out a string of popular games. ■ It presented its customers with a new form of entertainment. PlayStation was more than a toy.

Sony conquered the game console industry with relentless innovation in hardware, software, and business strategy.

■ Nintendo and Sega stuck with cartridge-based hardware because of its blazingly fast performance -- and because it was the platform on which it rose to power. Nintendo had always sold games on proprietary cartridges that were expensive for developers to buy and took months to manufacture. It expected its partners to bear these costs. Nintendo insisted that third-party developers place huge orders for cartridges and pay their manufacturing fees upfront.

■ The result? Developers worked only on games with huge market potential. Retailers featured a limited selection of titles. This resulted in Retailers featuring a limited selection of titles. ■ Sony learnt from its bitter experience with Sony Betamax machine and recognized that competing with Nintendo on a game-to-game basis would be difficult.

■ PlayStation's first

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