Playstation 3 5 Forces

Topics: Video game console, Xbox 360, PlayStation 3 Pages: 2 (635 words) Published: September 15, 2009
“Sony Drops Price of Playstation 3”

Assignment 2 Week 3: Industry Analysis

The article “Sony Drops Price of Playstation 3” discusses Sony’s Playstation 3 and its strategy with cutting the price of its PlayStation 3 by 25%, from $399.99 to $299.99. This is a business decision by Sony with hopes that it will generate increased demand for a videogame console that has undersold compared to Microsoft’s X Box 360 and the Nintendo Wii.

As the gaming continues to grows, the Threat of Entries continues to grow. As technology in this industry continues to advance, more competitors want to enter the market, and with online gaming portals now becoming used more often by gamers, the competition from the new gaming experiences continues to grow. With the Playstation 3 now lowering its price, they are trying to compete with x box 360 and the Nintendo Wii. The Bargaining Power of buyers in regards to Sony’s Playstation 3 and in this industry is very high. As more competitors enter the market with newer games and models, the consumer has to decide between which gaming console they want and weigh benefits each console has to offer them

The competitive Rivalry in this industry is very high mostly due to the bargaining power of the bargaining power of the buyers. The rivalry is high because Playstation 3 and x Box 360 and Wii are looking for every competitive advantage they can get because consumers are looking for the best console at the best deal, plus most consumers now stay loyal to one brand of gaming console . As soon as Sony announced its price cut of the Playstation 3, Microsoft announced a price cut with its x Box 360 console. This demonstrates that the competitiveness of this industry, with this particular incident resulting in lowering of prices. When it comes to the Bargaining power of the suppliers, this factor is very low, as there is not a huge impact of this factor unless there is some major component of a gaming console that would be needed to complete...
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