Sony
PlayStation 3: Game Over?
1.
Problem
Definition
Sony was the undisputed market leader
from the previous two generations of video game consoles (PlayStation &
PlayStation 2). It is believed that the next generation console from Sony
(PlayStation 3) will follow the success of the previous two consoles. In one
sense, long lines and sold-out stores were typical at the beginning of each new
generation of video game consoles. But, what made the scene outside of the
video game store in Manhattan quite surprising, though, was that the hopeful
customers were not waiting in order
to purchase a new PlayStation 3 (PS3) game console from Sony. Rather, these
particular customers were waiting in line to enter Nintendo’s flagship store,
and it was Nintendo Wii that they were after.
It was caused by the higher PlayStation
3 price compared to the other
competitors (Xbox 360 & Wii). Another thing that made the situation worse for PS3 are the quality of the
graphics and the Blue-ray movie playback can’t compete with the Xbox 360’s. PS3
are better in these sections if compared to Wii’s, but playing Wii is more exciting,
fun and satisfying.
2.
Market
Strategy
For the seventh generation of video game
consoles, Sony and Microsoft targets are the hardcore gamers (they are looking for fun and the best graphics
quality), different from Nintendo, who are targeting the casual gamers (they are just playing for fun and not too care about
the graphics quality).
In November 2005, Microsoft was the first company who launched the first
video game console of the seventh generation (Xbox 360). Their product received
mostly positive reviews and became a prized item of the 2005 holiday shopping
season. Moreover, Sony and Nintendo were not expected to launch new consoles
until the spring of 2006 at the earliest. It was no doubt a big opportunity for
Microsoft to gain a sizeable lead over its competitors.
3.
Solution
Sony has to make different product (new innovation)
from the other competitors and set their new product’s price lower. It is too risky if
they continue to compete with the Microsoft for the hardcore gamers segment
because of the lost of their
technology (in graphic and Blue-ray movie playback) or to follow Nintendo for
the casual gamers segment because of their popularity.
by syndicate R45-A2
MBA ITB
