Sony Playstation 3 Case Essay

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September the 26th 2012
Case Analysis: Sony Playstation 3

1. 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
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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.g. 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
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