Preview

Gap for Sony

Satisfactory Essays
Open Document
Open Document
820 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Gap for Sony
Gap and Current Strategy Analysis * Macro Environment:
The major trend in the macro-environment which affects Sony’s future strategy is socio/cultural/demographic. Since the Nintendo Wii emerged, it attracted many of non-traditional gamers came into the videogame console market, especially females and elderly people. Traditionally, non-traditional gamers think PlayStation is not ease of use for them. For instance, the joystick is difficult controlled or the instruction of the games are not easily understood for them how to play. Due to the non-traditional gamers want simpler products, high level of technical and graphical complexity are not concerned by them, so Nintendo Wii seems more suitable for them as it is ease of use, simple but fun games. Moreover, as the obesity epidemic is an important social factor within countries such as America and Australia, unlike PlayStation, the Wii Fit as a platform for the people to do exercise with its innovative motion-sensitive controller. Therefore, the current business strategy of Sony is not matching the non-traditional gamer’s needs.

However, as we mention before in macro environment analysis, society is becoming more intelligent and technology savvy, the gamers are increasing their demand for more challenging and stimulating game story lines and features, so the high technology feature of PlayStation matches this factor, the gamers can be played over the internet. Therefore, Sony PlayStation still maintains competitiveness by keeping up with technological advancements.

* Industry Environment:
The major trend of industry environment comes from the power of competitor. As we know, Microsoft Xbox 360 and Nintendo Wii are the main competitors of Sony PlayStation. There is a threat of Sony PlayStation while Nintendo Wii emerged. As Nintendo knew that it had competitive disadvantage of competing with Sony and Microsoft in the traditional gamer market, so when Sony and Microsoft was competing each other in the

You May Also Find These Documents Helpful

  • Powerful Essays

    Responding To The Wii

    • 1072 Words
    • 4 Pages

    Sony, with its PlayStation and PlayStation 2 product lines took this game further. They expanded the target customer base to include grown-ups by creating games fit for all ages and combining forces with game developers.…

    • 1072 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Case Responding to the Wii

    • 1457 Words
    • 6 Pages

    When looking at how the industry evolving over time we can use figure A given in the case reader. Here we can clearly see the market leaders in the gaming console industry over the generations. When looking at the product life cycle of each of the volume leaders, we can see that each console produced by the volume leader has an approximate life time of about 5 years. Technological improvements and competition over time have been the main…

    • 1457 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Responding to Wii

    • 551 Words
    • 3 Pages

    There is high internal rivalry among competitors because the core player market is growing slowly, competitors have high exit barriers and the products developed turn obsoletes in less than 5 years due to the fast progress of technology. The players in the industry are: Sony, XBOX and Nintendo.…

    • 551 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Nintendo wii

    • 367 Words
    • 2 Pages

    Altough there are only three main competitors in the market the competition is strong so that Playstation even had to set the initial price of its Playstation 2 under production costs to gain market share.…

    • 367 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Wii Case

    • 304 Words
    • 2 Pages

    In the console game industry, “generations” defined by advancement of the underlying technology. Nearly all technological leaps from one generation to the next were marked by a change of industry leadership. Such as, the 3rd generation (1988~1944) was dominated by Sega Genesis console which was set firstly applied with a 16-bit microprocessors. And in the 4th generation, Sony introduced PlayStation, a 32bit CD-ROM videogame machine which had more storage capacity and more lower costs…

    • 304 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Wii Encore Case

    • 1383 Words
    • 4 Pages

    Secondly is the first mover advantage. The earliers the new technology is introduced, the more effective impact it will have on the industry. Although the companies applied with the similar type of technology, the first mover gained the perception as the dominant player. The first introduction of he 16-bit and CD-ROM can lead respectively the market in its generation like Sega and Sony. However, it doesn’t always affect it; if the competitors have a strong response, quickly to follow its advantage, the firs mover’s benefits would not last long like with the Wii.…

    • 1383 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    XBox Vs. PS4

    • 3148 Words
    • 13 Pages

    The game console industry is unpredictable, as the market leader changes as frequently as new games being released. Currently, the most prominent console manufacturers in the industry are Sony (PlayStation), Microsoft (Xbox), and Nintendo (Wii). While Sony and Microsoft focus on powerful machines and games targeted at older teens and young adults, Nintendo’s family friendly, less graphically polished consoles target an entirely different market, and is not applicable to the Sony/Microsoft battle.…

    • 3148 Words
    • 13 Pages
    Powerful Essays
  • Better Essays

    Ps3 vs Xbox360

    • 1842 Words
    • 8 Pages

    There are two biggest companies that product Game Console in the world. In this report we talk about Sony Company and Microsoft Company, they product different kinds of game console. Sony Company product PLAYSTATION 3, for the other side Microsoft Company product XBOX 360. These products are the 7th generation of the Game Console history era. The result for more research of this two products show that there are some differences between their quality, but the amount of number of the products that had been sold are far different from each other.…

    • 1842 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    Executive Summary nintendo

    • 1043 Words
    • 4 Pages

    The video game industry has grown substantially since 1995. (See exhibit 1) and the prospects of growth look great going forward. Three main players dominate the current market: Microsoft, PlayStation 3, and Nintendo. Furthermore, based on porter’s five forces, the threat of new entry is low. (Exhibit 2) Nintendo is outselling Sony 2 to 1 by going after customers currently out of the video game market share. This threat shouldn’t be as much of a concern as an opportunity; the two companies are competing in different realms. (Exhibit 3)…

    • 1043 Words
    • 4 Pages
    Satisfactory Essays
  • Better Essays

    2014 saw the release of the eighth generation of video games consoles. This includes the Microsoft Xbox One, the Sony PlayStation 4, and the Nintendo Wii U. Although, these companies are competing against each other for market leadership, they also face competition from smartphones, tablets, and smart TVs. Some analysts have predicted that…

    • 4659 Words
    • 16 Pages
    Better Essays
  • Powerful Essays

    Nintendo Strategy

    • 4445 Words
    • 18 Pages

    Nintendo Co. Ltd. is a longstanding member of the home entertainment software industry that has embarked on a mission to offer the highest quality products and services while treating their customers with attention, consideration and respect. Nintendo’s strategy thus far has been to take advantage of their video game development capabilities; nearly 60% of games sold by Nintendo are self developed. The innovative capabilities derived from various gaming platforms have allowed Nintendo to capitalize off of a series of attachment control devices. The biggest strength that Nintendo has is a strong brand name along with high returns. A well established brand name gives Nintendo an edge over its competitors. Nintendo is the only company that has managed to capitalize on both hardware and software components. The biggest opportunity for Nintendo is to incorporate themselves into the online gaming market due to short product life cycles. Nintendo maintains their competitive advantage through superior game and character development, for which it often owns the legal rights. In a technical comparison of the Wii against its major competitors, it is substantially outperformed in speed processing, memory, storage, networking, video output and multimedia output. If Nintendo wishes to maintain a competitive advantage, the niche market must be penetrated while maintaining the integrity of the Nintendo brand image. Nintendo Black would become a subsidiary company of Nintendo Co. Ltd. that will operate with a mission to specialize in advanced technological specifications to consoles that will compete with Microsoft and Sony. If the proper measures are taken then Nintendo has the opportunity to continue to position itself as an alternative to the gaming experience while increasing the level of competition for its rival companies with its subsidiary company.…

    • 4445 Words
    • 18 Pages
    Powerful Essays
  • Better Essays

    The video game console industry is a very competitive segment. This segment requires a keen eye on product development as well as strategic product marketing and a rather large logistics arm to ensure rapid distribution to targeted areas. Video game industry in the US, which is hugely driven by retail sales of software and hardware, registered revenues of USD ~ million in CY'2012. Even so with the advent of new video game players in the industry, the revenues decreased by 11.7% compared to CY'2011 where the total revenues was USD ~ million. Each segment in the video game industry is subject to a gamut of different factors such as price cuts and number of units sold that play an important role in determining their respective revenues. The video game industry in the US has grown at a CAGR of 8.5% from USD 13,300 million in CY'2006 to USD ~ million in CY'2012. (PR, N. 2013, March 7). The video game console industry is still postured to grow despite the already rapid growth from CY’2006 to 2012. Opportunity still exists for new entrants into the video game console industry.…

    • 1258 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Responding to the Wii

    • 1022 Words
    • 5 Pages

    Kazuo Hirai, the chief executive of Sony Computer Entertainment Inc. (SCEI) has encountered two large rivals in the video game industry this year. Nintendo and Microsoft have released advanced video game consoles that have left Sony sales behind. Nintendo especially, has broken the status quo for marketing in the video game industry by dramatically expanding its target market from 18-34 year-olds to 9-65 year-olds both male and female with its new video game console, the Wii. For years, Sony had gone head to head with Microsoft competing for the same market with their PSPs and X-Boxes consoles. Both Sony and Microsoft focused on using advanced technology to create cutting edge video game consoles whose purpose was more than just video games. Their target market was 18-19 year old males. On the other hand, the Wii is not as advanced as the PSP or X-Box. Its main attraction are its wireless, motion-sensing controllers that allow gamers to use their limbs (punching, swinging, batting) to control the actions of on-screen characters. Also, the Wii was designed with user- friendly capabilities that appeal to all audiences. Nintendo is threatening competition for Sony. There are five main forces that drive Video Game Industry competition:…

    • 1022 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Marc Morial once said, “Technology is permeating every single thing we do... And to the extent that we can better expose our young people to all the different ways that technology can be used, not just for video games or toys, we're planning for the future.” In this generation, the generation of technology, in almost every house, you will find some type of video game console. Video games have become something that is not just for children, it has become an activity for human beings of all ages. In the constant debate of Xbox One vs. Playstation 4, the similarities and differences between the graphics, the hardware, the affordability, and the various game choices are the important factors to consider.…

    • 393 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The three main contenders in this industry were Nintendo, Sony and Microsoft. Nintendo’s competitors had huge financial resources due to their other businesses whereas Nintendo worked solely in the video game industry. Sony and Microsoft started catching up with Nintendo after the runaway success of the Nintendo Wii. Sony introduces the PS3 and Microsoft developed the Xbox360. Nintendo had used off-the-shelf hardware for Wii and made it suitable for the masses- specially the ‘Moms’. Wii avoided directed competition from next generation game consoles and instead identified a new market by targeting customers who had no or little interest in gaming. Along with Wii, Nintendo introduced motion sensing gaming, Wii Remote.…

    • 617 Words
    • 3 Pages
    Good Essays