Sony Playstation 3 Case Study

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

They are much more reactive and have a lot better processors. The consoles are well equipped with great storage and can hold plenty of content. The PlayStation is known to have a more comfortable controller with a smaller and skinnier design to better fit the player and make it a more enjoyable experience. Sony improved the thumb sticks so that they don’t touch while playing, the triggers have an inward curve unlike the previous outward curve on the PS3, and the thumb sticks have a concave surface for more comfort (www.ign.com). The play station has wireless rechargeable controllers and is compatible with hdmi for more vivid picture and shapes. They are both excellent gaming consoles but are so complex that they have many differences. The biggest advantage of a PlayStation is that it can play Blu-ray movies, it has a 500GB hard drive, and it is $400, which is $100 cheaper than the Xbox (Best Buy). The Xbox one also has the features of Blu-ray and a 500GB hard drive, however it cannot connect to a mobile device while playing a game unlike the PlayStation (www.ign.com). Consumers rated the PlayStation 4.7 out of 5 stars and the Xbox received a 4.6 which is very close considering the PlayStation was released a week before the

For the industry analysis, we are certain of sales since the PS4 is a consumer product particularly. For that reason, the buyer has a high bargaining power on the product. The market for casual gamers has increased seriously and sales increased after decreasing price of the PS3. Due to the uniqueness of every video game console and the games buyers have bargaining power. A small difference might be significance an extra hundred dollars for an intense gamer. People have more aware to the price difference because they play video games more casually and as a result they have more bargaining power. Buyers have a reasonable amount of power in the video game industry in particular with Nintendo. Although Microsoft and Sony have other sources of revenues, the major source of income comes from the sales of games and game consoles.

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

With all these elements concerning the gaming industry. PlayStation 4 continue to outsell its competition. Which is the Xbox One as well is the Xbox 360 and the Nintendo. In turn makes it the number one gaming console worldwide. Sony has committed to cultivating it's gaming system for the next generation to enjoy the product. Sony PlayStation 4 has no pressure with it status in the gaming industry with it significant prices, and design. With gives reasoning to buy the console.

Sony has made the console both attractive and practical (Keller). They have made the console more attractive by giving it a

When buying a gaming consoles, be prepared to spend a lump sum of cash. The PS4 used to cost 400 dollars since being first released back on November 14, 2013, but recently it has dropped down to 350 dollars. The Xbox One price has fluctuated since first being released on November 22, 2013. When it first launched in the United States, the original price was 100 dollars more than that of the PS4’s original price of 400 dollars. In todays society, people or perhaps only me, tend to buy the cheaper options of things. So of course, people brought the PS4 over the Xbox One. Microsoft must have thought their gaming console was far superior than Sony’s gaming console so they made it cost more. This action by Microsoft weakened the Xbox One sales. In

Block out the world and experience total audio immersion for your PlayStation 3 with the Sony CECHYA-0080 headset. It has over-the-ear cups to fully seal out external noise and keep in the sound of your Playstation game. The comfortable seal allows you to enjoy playing official Sony games for hours. The cups extend around the outside of your ear and rotate at an angle for a customized fit.

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.

“To become a leading global provider of networked consumer electronics, entertainment and services.” That’s the mission of Sony, producer of the Sony Playstation. Sony, information and

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.

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

The main obstacle facing a start-up video game console company from entering the industry is saturation of the market from the larger video game console makers or the “big three” Nintendo, Microsoft, and Sony. The big three tend to release new game consoles around the same time frame and compete head to head for sales. During the time frame it is impossible for a new entry to jump into the fray. 2010 was a banner year for video console sales Sony’s PS3 sold 14 million units followed by Microsoft’s Xbox 360 13 million and surprisingly Nintendo’s Wii led the big three selling 17 million units. After the 2010 release of all three consoles sales started to decline for each company. Nintendo took the largest sales loss at 72% in 2013 only 747,000 were sold compared

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.