Playstation is a product of Sony, which is one of the leaders in the electronic equipment industry. Since it was founded in 1946, Sony has produces some of the most innovative, quality products as apart of mainstream culture. The SWOT analysis provides a snapshot of the Strengths, Weaknesses, Opportunities, and Threats for not only Playstation, but also examines certain aspects of the video game industry along with the entertainment industry as a whole.
Best raw computing power of the three main competitors in the industry.
Sony provides Playstation with a very strong band name.
Playstation has developed a strong brand name as well, this being the third version of their product.
Game licenses; royalties typically provide about 16% of their revenue and are a major source of profit due to the high margins in receiving them.
Strong global market presence, in large part due to Sony's global diversification.
High quality Blue-Ray function.
Favorable view of their computer power, graphics and audio.
High quality products.
Playstation 3 fell behind in the race from the start versus the Wii and Xbox 360; most likely because of price.
Online Service inferior compared to competitors.
Sony added cloud game saving as a part of PS3’s 3.60 firmware update. A Parks Associates poll showed that only 30% of tech savvy users believed that cloud storage was a viable option for multimedia.
The Playstation Portable has become nearly obsolete.
With Sony being such a large company, then are active in an extremely large number of products. Therefore the can not focus on PS3 as much as PS3’s competitors are able to focus on their products. Opportunities:
Blue-Ray becoming the standard for high-definition.
Synergies with other Sony products.
Production costs decreasing due to...