The Launch of the Sony PlayStation 3
There is very little Sony can do to turn around the sales of the PlayStation 3. It has been nearly six years since its launch, the full lifetime of most gaming consoles. While the Nintendo Wii and Micrsoft Xbox360 have drastically lowered their prices to move existing stock, Sony has only dropped their price in the last 2 years. Now priced at $300, the PS3 is still over $100 more expensive than the competitors. At this point in time, it would be wise for Sony to discontinue the manufacture the sale of the PS3 and focus on its next game console. Sony’s strategic approach to new product development has always been to be a market leader in new, innovative technology. This approach has brought them huge success, but also some notable failures. For instance, the Sony Betamax, which was introduced in 1975, was supposed to be a direct competitor to VHS. It provided higher quality images, but did not offer the longer playtime of VHS. Sony stubbornly refused to change its format for eight years, but eventually switched over to the far more popular and cheaper VHS. Despite this notable failure, the Sony Walkman was one of its greatest successes, with 100 million units sold within its first decade. The key success factors in the video gaming industry today are content, price, availability, and compatibility. These have remained factors since consoles first began emerging in the late 70s. For gamers around the world “Content is King.” It doesn’t matter how crisp and beautiful the quality of the images if there are only fifteen games, which, coincidently was the number of games with which the PS3 launched. Gamers who rushed out to buy the PS3 quickly realized that the limited number of games made the PS3 little more than an expensive TV attachment. Sony tried to counter this by touting the Blu-Ray capability of the PS3, but gamers weren’t interested in watching movies on their PS3, they wanted to play new games. Another...
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