What, if anything, should Sony do to turn around the sales of the PS3? * Instead of focusing on one particular target segment (18 to 35 year-old male gamers with above average-education and high degree of comfort with new technology) further target segments should also be focused (e. g. women, children, occasional gamers and non-gamers).
Some of the further customers require games which are easy to play because they have a low degree of comfort with new technologies. Furthermore some of them don’t want to invest a significant amount of their time to learn and play these games because of their busy lives. * Supply simpler games irrespective of age, gender or gaming experience. This could lead Sony to two advantages: 1. Larger number of potential customers 2.
Lower production costs for the simpler games higher margins * Supply more especially higher ranked PS3 titles to create stronger incentives for customers to buy a PS3 console/ to prefer PS3 over other game consoles * Sell the PS3 in different packages (e. g. 2 controllers and one game included when you buy a PS3) * Introduce a motion-sensing game controller for the PS3 to have similar features like the Wii ( “Playstation Move” already launched in 2009) 2.
What has been Sony’s strategic approach with regard to new product development? * Sony supplied usually products with higher quality than the competitors (technical superiority) e. g. Betamax vs. VHS, PS3 vs. Xbox 360 and Nintendo Wii * Sony products were usually significantly more expensive than the products of the competitors e. g. Betamax vs. VHS, PSP vs. Nintendo DS, PS3 vs. Xbox 360 and Nintendo Wii * Sony didn’t adapt its products to the wishes of the consumers e. g.
The Term Paper on The Home Video Game Industry: Atari Pong To The Nintendo Wii
... Nintendo released enough product to meet demand while maintaining a higher price point. Within one year following the release of Nintendo Wii, both Microsoft and Sony ... “Sony Settles Class Action Lawsuit: Over $1 Million in Free Games, Themes and PS+ Discounts Available for Canadians.” PlayStation LifeStyle. N.p., ...
Betamax: Consumers preferred longer recording times over higher definitions but Sony was unwilling to adapt the technology to accommodate longer play times because doing so would degrade the video quality * Sony wanted to provide their own formats for their products; Sony has been reluctant to license its technologies to competitors (copy protection schemes) e. g. ATRAC: unwillingness to support other formats on their products; SACD: player incompatible with most stereos * Created high expectations before launching their products, e. g. PS3:”Play Beyond” 3. What are the key success factors in the video gaming industry today?
Are these the same as in the past? * A key success factor is still having a library of quality game titles to offer consumers key success factor today as well as in the past * The backward compatibility between the consoles is still a key success factor key success factor today as well as in the past (See PS2 to PS1 and PS3 to PS2) * A key success factor today is the possibility to play online in networks * In the past game consoles were just for playing games but today they are more than just for playing: surfing in the internet, download pictures and movies, rip music, and watch movies (e. . Sony’s integrated Blu-ray) past: gaming ; today: gaming and home entertainment systems.
Quality of graphics and the power of processors has lost its importance Wii more successful than PS3 despite its underpowered processor and comparatively basic graphics 4. What was Sony’s marketing program for the launch of the PS3? What is the competitive advantage of the PS3? What are the weaknesses of the PS3? Sony supported the launch of the PS3 with a $150 million advertising campaign that aimed to convince potential customers to hold off purchasing a new system until after the PS3 is launched instead of buying a Xbox360 or Wii * Sony wanted to launch its product after Microsoft’s Xbox 360 to learn from their mistakes and adapt its console more to the needs of customers
The Research paper on Sony Case Study 2
... is having a library of quality game titles to offer consumers. When Sony made the launch of PS3, the company spent $ 150 ... of the PS3? 5. Compare the marketing program of the Nintendo Wii to the PS3. How are they different? To turn around ... than higher definition. Later, Sony abandoned the format and began manufacturing VHS players. In 1980’s, Sony Walkman portable music player dominated the portable ...
Sony gave a free high-definition television valued at more than $4,000 to the first 125 people to purchase a PS3 * Sony launched its PS3 first in Japan and US, later in Europe * With the integrated Blu-ray Player in the PS3 Sony wanted to penetrate the market with the Blu-ray Player * Sony continued its previous strategy of increasing the computing power of its newest product and adding more impressive graphical interfaces. However, Nintendo used another strategy for its new product * Competitive advantages of the PS3: 1. integrated Blu-ray Player; 2. better processing power; 3. ability to go online and surf in the Internet for free; 4. free online play; 5. ability to download pictures and videos; 6. ability to rip your music; 7.
Long years of leadership in the gaming industry (with the PS2) * Weaknesses of the PS3: 1. most expensive console (highest costs and highest prices); 2. Longer development cycles for PS3 titles than for Wii titles; 3. Fewer titles available/ less exclusive titles; 4. spotty support for PS2/ just a few backward compatible titles; 5. PS3 games look just the same as they do in Xbox360 despite higher prices for the PS3; 6. Uninspiring online capabilities; 7. Isolated vibration feature from the motion sensors 5. Compare the marketing program of the Nintendo Wii to the PS3. How are they different? * PS 3 is much more expensive than the Nintendo Wii Nintendo boasted a number of exclusive titles for the launch of the Wii, including highly rated games (more titles than the PS3) –
Sony launched its PS3 with only 15 titles and the majority of these titles were franchise games that had previously been available for the Xbox360 * Sony: the needed video cables to take advantage of the PS3’s graphics capabilities are not included in the offered package – Nintendo: included its popular “Wii Sports” title with each console * PS3 controller: vibration feature isolated from the motion sensors to reduce costs – Nintendo Wii controller: vibration feature with motion sensors * Sony PS3: Blu-ray player integrated into the console —- Nintendo Wii: No integrated Video Player * The PS3 has got more advanced graphical and processing capabilities than the Wii 6. What would you have done to launch the PS3 more successfully? * I would have launched the PS3 earlier and tried to prevent delays in the market launch, even though there would be higher production costs.
The Essay on Nintendo, Sony, Video Game case
The video game industry has gone through six generations of consoles, and the seventh is now underway with new consoles from Nintendo, Sony, and Microsoft. Atari led the first generation of the video game industry. They were able to create the first home video game Pong in 1972, and they were the first to develop the interchangeable cartridge and the joystick. The creation of the interchangeable ...
The fact that Sony couldn’t hold its promises (Planned launch of the PS3 pushed back from spring 2006 to fall 2006), led to loss of trust and image * Furthermore, it would be better to launch the PS3 as soon as possible to reduce the head start advantage of Microsoft’s Xbox 360 * I would have tried to launch the PS3 in Europe at the same time as in Japan and in the US to provide a greater Hype-effect all over the world. * I would have tried to enlarge the target market for the PS3 * Even before the PS2 console was launched, Sony entered into development partnerships with 164 Japanese software companies. This strategy would also have been better for the PS3 to supply more games at the time of the market launch. * Conducting more or better Conjoint analysis to request the willingness to pay and the importance of certain product features for the consumers
