Investment Potential of Sony Computer Corporation

Japan is the home to of the top companies in the world. One of the companies, which has helped Japan’s economy to be one of the top, is Sony. Modern day Sony is a high profit high output company, which is manly due to its marketing strategies and decision to its customers.

Sony Corporation is a Japanese owned company, created in 1946 based in Tokyo, Japan. The company competes in the technology market with diversity. This includes video games, computers and computer hardware, television, media players, etc. With that being said, Sony has had their ups and downs over the past few years, just like everyone else in this industry. Things such as the U.S. economy can really affect the future of this company. Now that the economy is on the downfall, things such as entertainment are not as important as paying for food, gas, and other bills. It is important to realize these things as you analyze the company due to the fact that the company

* Identification of the strategic goals of both the SBU and the parent company, Sony, and reevaluating goals as the market or technologies shift, or as Sony adjusts its corporate strategies;

Sony must reposition its “growth driven” and “stable profit generator” sectors in their markets to increase its audience, achieve sales growth, profit expansion and maximization, and capture market shares.

There are rumors about the next Nintendo console, dubbed the NX.Very little is known about it, but the speculation is that it’s more powerful than the PS4 and may use cartridges, not discs.

As sales of Nintendo’s Wii and DS dominate the PlayStation 3 and Xbox 360, and PlayStation Portable, respectively, the pressure continues to mount on Sony and Microsoft to move to the next level in the ongoing console wars. Sales of the Wii in 2008

The Xbox One X is going to be a massive step up in gaming consoles and PlayStation does not have the hardware to compete yet. I believe that PlayStation is going to be working on a console to hit back at the Xbox One X. Nintendo Switch had a very positive response so they may carry on making new Nintendo devices similar to the Switch. Also if Xbox and PlayStation are stepping up the power of their consoles then Nintendo might have to make more power out of their console too. Also Xbox, PlayStation and Nintendo are going to have extra competition once again as Atari have announced they are going to be re-entering the console business after years of absence. Atari will be restarting their console market by releasing the Atari Box.

Sony, Microsoft and Nintendo have been competing for a decade with Sony dominating the market throughout most of the years because of their superior technological products. The video games industry faces an entirely new rivalry situation. In 2008, Sony lost its strong position on the market, because of Nintendo’s success with their dynamic Wii over Sony’s high-tech PlayStation 3 and Windows’ Xbox 360. Although the Wii was technologically much less advanced than PS3 and Xbox 360, the Wii's cheaper price, ease of use, innovative motion-sensitive controller, and simple but fun games, made the console a hit all demographics from 9 to 65 years old, male and female. All these factors resulted in Nintendo’s Wii dominating sales and surpassing Sony’s by an impressive ratio of 2:1.

Overall, the market response to these three consoles has been surprising. Nintendo Wii, has outsold its rivals and more surprisingly, Sony’s PS2 has outsold PS3. This has let Microsoft and Sony with the enormous challenge of competing with a rival possessing two key advantages: a lower cost console and a product with a sound response in the market.

This is the ting you receive with a Playstation 3 but you can’t actually touch. In the case of the Playstation 3 it is of course the fun, the family time. And also the movie entertainment experience.

Nintendo appears to have implemented a market-penetration pricing strategy. The Wii at a cost of $250 is 50% less than the 20-gigabyte PS3 (smaller hard drive machine). At this lower price, it is easier for the product to penetrate the market due to affordability in most segments. This aligns with the assumed company’s aim of maximising market share in the current and new segments. To achieve this, Nintendo ensured that the Wii was less costly to manufacture. Moreover, a higher sales volume may lead to lower unit costs and higher long run profits. Conversely, Sony is believed to have a market-skimming pricing strategy. The company invested $2 billion in technology, so this strategy aims at recovering the maximum amount of revenue to cover the high costs incurred in the early stages of the product life cycle. Additionally, Sony has a strong brand due to the success of their previous machines (PS2 and playstation) and the high price assists in communicating the image of a superior product with quality.

The plan is to market these 3D releases by debuting in the consumer home with select Sony 3D products. This launching would be during the high-traffic holiday retail season which will be featured nationwide in the United States.

1. What, if anything, should Sony do to turn around the sales of the PS3?

Way back then, Sony entered the market originally as a supplier of components for Nintendo Entertainment System (NES) home console. However, when Nintendo failed to introduce new technologies that would improve the gaming experience, Sony grabbed the chance to seize the opportunity. Sony

I recently entered a sector of the home entertainment market by purchasing a Playstation 3. The Playstation 3(PS3) is Sony Computer Entertainment’s third video game console which competes in the current seventh generation of consoles alongside Microsoft’s Xbox 360 and Nintendo’s Wii.