Sony Playstation 3: Game Over?
Step 1: Situation Audit (SWOT Analysis)
Strength
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Sony with PS was the market leader for the last two generation of video games
PS3, the most technologically advanced video game of the seventh generation.
Well organized campaign across multiple forms of media.
PS3 has cell chip and Blue ray disc player.
Great Graphics and audio capabilities
High Quality Blue Ray function
Weaknesses:
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High retail price of PS3
They were late to the market when they lunched PS3.
The launch of PS3 was delayed several times.
PS3 and PS2 were very similar.
The price of the PS3 games was also High.
Lake of ps3 games
Less innovation compare to Wiiremote
Opportunities:
1. Sony has long history of successful product such as Walkman, PS.
2. Sony can establish a license agreement quickly with large number of third party game developers, some of them turned into exclusive agreements.
3. Get the advantage of PS2, a lot of people still buying it from Amazon or Best buy, etc.
4. Blue Ray become the standard format for high definition content.
5. Production cost will go down in 2008.
Threats:
1. After 7 month of Wii Launched in the market, all the shipments of Wii been sold immediately 2. Low retail price of Xbox 360 and Wii when we compare it to PS3
3. Microsoft strategy of development process through the creation of XNA, new software tools that will make the cost of games creation low, that will decrease the game prices.
4. The Wii wireless controller and creative Ideas
Step 2: Problem Defined
Even thought that Sony is a great company and PS had several peaks, and achieve a lot of success and had been the top , but after w while, when Xbox 360 and Wii, showed up in the market with their latest Technology the Market share of PS 3 starts to decline , Xbox and Wii start to earn this share, so the Key problem is the Decline in Market share.
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