Sony Computer Entertainment’s Core Product: Playstation

Topics: Sony, Sony Computer Entertainment, Video game console Pages: 7 (2143 words) Published: November 11, 2008
Introduction to Sony Corporation

Massaru Ibuka is the man behind some of the most successful high-tech products that consumers use today. Massaru Ibuka is the founder of Sony. After WWII, he opened up a radio shop and named his company “Tokyo Telecommunications Engineering Corporation,” (Sony Corporation, 2008, Introduction section, para. 1) which was then later changed to Sony. “The next year the company changed its name to Sony (from "sonus," Latin for "sound," and "sonny," meaning "little man").” (Sony Corporation, 2008, Introduction section, para. 1) Actually, Massaru wanted to change his company’s name, so that he could market his products to American’s. In order for any of their products to become a house hold name, he understood that they needed to have brand equity among other competitors. Massaru’s plan was to envision a product line that had incredible technological advantages over his competitor’s products. “The goal was to apply various technological innovations that had been developed during the preceding years to the production of new electronic gear for a general audience. Massaru concentrated on the products.” (Rothman, 2001 p.112) Sony has been a key player in the high technology field since the 1960’s when their main product was the transistor radio. Even though these radio’s already existed in the market, people did not see the value in them. Massaru had the vision, and knew how to market the product. After receiving much recognition for their transistor radios, he realized that the transistor radio was in the maturity stage of the product life cycle, and should therefore improve it. He also recognized that rock-n-roll was popular with the young generation at the time, and people needed to have better sounding radios. The new and improved radio (with numerous transistors) made sales skyrocket from only a few hundred thousand units (of old singular transistors) sold, to millions of units sold. Little did Massaru know that from creating a radio shop, that he one day would have created one of the biggest electronic company’s known through out the world!

Sony’s Corporate Divisions & Facts

Sony is one of the biggest producers of electronic devises and a key player in the entertainment industry. According to Rothman, “Sony Corporation is one of the world’s leading consumer electronics firm with additional interests in the entertainment industry through subsidiaries dealing with recorded music, motion pictures, TV programming, DVDs and videos.” (Rothman, 2001 p.109) Sony has a wide range of business ventures that includes many different divisions that make up Sony. Sony has five different strategic business units including “Sony Electronics Incorporated, Sony BMG Music Entertainment Incorporated, Sony Pictures Entertainment, and finally Sony Computer Entertainment America.” ( According to Sony’s website, the firm is “headquartered in Tokyo, and the company oversees approximately 163,000 employees.”

Today, Sony operates on a global scale that generates millions in profits. This company also has a good grip on the international scale. People around the world are familiar with the brand Sony. According to Sony’s website:

The company recorded revenues of approximately $70,355.8 million during the fiscal year ended March 2007, an increase of 10.5% over 2006. The increase was driven by strong sales within the electronics, game and the pictures segment. The operating profit of the company was approximately $608.5 million during fiscal year 2007; a decrease of 68.3% over 2006.The net profit was approximately $1,071.4 million in fiscal year 2007, an increase of 2.2% over 2006. (

As stated, Sony’s sales have increased due to the gaming division. Sony’s cash cow since the late nineties and today has been their gamming devise called the Playstation. Many people do not realize the ingenuity and the struggles that took place to create this product....

References: Gee, J. (2003). What Video Games Have to Teach Us about Learning and Literacy. New York: Palgrave Macmillan, 7-11.
Kline, S
Miller, J. (2005). Business of Brands. New York: John Wiley & Sons Incorporated, 112.
Prues, D. (2003). Games Developer’s Market Guide. New York: Premier Press Incorporated, 203.
Rothman, H. (2001). 50 Companies that Changed the World. New Jersey: Book-mart Press, 112.
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