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Case Study
Case Study # 10
1. What, if anything, should Sony do to turn around the sales of the PS3?
2. What has been Sony’s strategic approach with regard to new product development?
3. What are the key success factors in the video gaming industry today? Are these the same as in the past?
4. What was Sony’s marketing program for the launch of the PS3? What is the competitive advantage of the PS3? What are the weaknesses of the PS3?
5. Compare the marketing program of the Nintendo Wii to the PS3. How are they different?
To turn around the sales of PS3, Sony should upgrade and go more details of interesting games, spotty support for PS2 games and uninspiring online capabilities to capture the interest of the consumers. In the market, Xbox 360 has been for more than a year and the price is $200 less than PS3. Thus, as the production needs to create more advance games and interesting features to win Xbox 360, the management should consider about pricing in the market. If the product has the same quality with high price in the competitive market, the consumers would not give consideration to purchase. So, even the price of the product is a little bit more expensive and quality is in higher level, it is worth to purchase and the sale will surely be increased.
Sony has been experienced for developing the new products in the market in the history. The company has been developing new products along the way since back in 1975. First of all, videotape was produced in higher definition but the customers preferred the portable recording than higher definition. Later, Sony abandoned the format and began manufacturing VHS players. In 1980’s, Sony Walkman portable music player dominated the portable music market and it has been the celebrated brand of the organization. When digital technology took place in the market, Sony walked with the CDs player with its own format rather than over formats. iPod introduced by Apple in 2001 and supported at least seven different audio formats. To

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