Prepared by:
Max Pearson
Sukhee Youn (Saleisha)
Jennifer Palahniuk
Lin Liu (Austin)
OCT 2009
Focus on Play Station Dept.
Introduction & Co. History
• Founded in late 1945
• Stock share became publicly traded in 1958
• 1980s, purchase Konica Minolta
• Walkman, Betaman Player, MD Player, 3.5” disk, Memory Stick, DVD, Blue-ray Disc
• Key point: Keep creating new…Standard maker gets most profit
Walkman Player
Betaman Player
MD Player
3.5” Disc
DVD, or a Blue-ray Disc
Introduction & co. history
Found in 1945
Stock share publicly traded in 1958
1980s, purchasing Konia Minolta
Keep creating new and always changing the world: walkman, MD, DVD, 3.5” Disc etc.
Industry AnalysisHistory – Video Game & Play Station
• Start in 1958, Nintendo and SEGA dominion
• In 1994, Nintendo aborted cooperating with Sony to develop video game, and put Sony develop alone
• 1995 – PS, 2000 – PS 2
• 2004 – Microsoft put XBOX console on sale
• To keep market share, 2006.11.11 – PS 3(original planning put on 2008, since HDTV tech)
• 2007 – Nintendo put Wii on sale
• 2008 – Microsoft put XBOX360 on sale
• A game disc is made for different console
• Motivation: more profit, spread riskCausing: more competitive between consoles
Industry AnalysisCurrent Situation
17%
26%
57%
Market Share 2009
PS series (SONY)
XBOX series (Microsoft)
Wii (Nintendo)
illegalcopy
game producer losingprofit
lowqualitygame
customer dislikethe console since
no good game
console producer losingprofit
low qualityconsole & low-
tech in anti-crack
National ID Number Verify
You can log in game; however, we suggest you to verify your ID the release the playing limit.
Protect student from fallen in game, political & culture issues.
Industry - current situation
Market share
Illegal copy
A game developed for different consoles
Barriers in some countries
• Desire of high quality in pictures and sounds
• More illegal copy, and do NOT have useful method yetprotect technology always comes with crack methods
• Multi-sensory playing experience
Industry Analysiskey issues & future trend
One kind of Controllers
for Wii console (Nintendo)Industry – key issues & future trend
High quality pictures and sounds
Anti-copy goes with being cracked
Multi-sensory playing experience
Sony Co. - Current Profile
• Poor Operating Incomes
• High Priced Consoles
• Strategies for profitability
• http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html
• Game Consoles
–PS3
–PS2
–PSP
Sony Co. - Global Market
• Sony Computer Entertainment Asia
• Sony Computer Entertainment Europe
• Sony Computer Entertainment America.
Competitors
• Nintendo Corporation Ltd.
• Microsoft Corporation
• SEGA Corporation
(Sega Sammy Holding Inc.)
• Founded in 1889
• In 1977 The first TV game
• In 1983, Start
Video game business
• Innovative game player- Nintendo DS
- Wii
- Wii Fit
• Increasing market size
- Touch generation
- Women
- Old people
• Network Expansion
- Grows company size and profits
- Domestic : Japan
- Global : United States, German, France, Netherlands, Australia, South Korea etc.
Competitors - Nintendo Corporation Ltd.Founded in 1889
In 1977 - The first TV game In 1983, Start Video game business
Innovative game playerNintendo DS, Wii, Wii Fit
Increasing market sizeTouch generation, Women, Old people
Network ExpansionGrows company size and profitsDomestic : JapanGlobal : United States, German, France, Netherlands,
Australia, South Korea etc
• Major IT company
• Founded in 1975
• “New Efficiency”
• EDD (Entertainment and Devices Division)
- Xbox 360
- Xbox Live
• Xbox 360, Xbox live
- Online based
- Stable Service
- Internet Infra
- Communicate with other gamers
- Various games
• Xbox-Alpha-Dunks
• $ 2,500• Lots of foreign subsidiaries
- Access global market easily
- Meet the tastes of customers
- Domestic : United States
- External nation : Almost all over the worlds
Competitors – Microsoft Corporation
Major IT company, Founded in 1975, “New Efficiency”
EDD (Entertainment and Devices Division) Xbox 360, Xbox live
Online based, Stable Service, Internet Infra, Communicate with other gamers, Various games
Lots of foreign subsidiaries-Access global market easily-Meet the tastes of customers-Domestic : United States-External nation : Almost all over the worlds
• Founded in 1940
• SErvice GAme of Japan
• Home video game player
- SG100
- Sega Satern
- Dreamcast
• The greatest hit games
- Sonic
• Lots of loss
• In 2004, collaborated with Sammy Corporation
• Sega Sammy Holding Inc.
• Subsidiaries- Sammy
- Oasis Park Corporation
- Secret Level
• International Markets- USA
- Europe
- Taiwan
- France etc.
Competitors – SEGA Corporation
Founded in 1940, SErvice GAme of JapanHome video game player: SG100, Sega Satern, DreamcastThe greatest hit games: SonicLots of lossIn 2004, collaborated with Sammy Corporation - Sega Sammy Holding Inc.
SubsidiariesSammy, Oasis Park Corporation, Secret Level
International MarketsUSA, Europe, Taiwan, France etc.
Company Analysis
14.78 13.66
7.91
9.613.81
14.11
3.55
9.12
10.06
0
5
10
15
20
25
30
35
40
2007 2008 2009
Hardware Sales
PS3
PSP
PS2
In Millions of Units
193.5
154
83.5
54.7
55.5
50.3
13.3
57.9
103.7
0
50
100
150
200
250
300
2007 2008 2009
Software Sales
PS3
PSP
PS2
Hardware sales
Software sales
SWOT Analysis
• Name Recognition
• Internet usage
• Backwards capability
Strengths Weaknesses• Price
• Blue-ray
• Release date
Opportunities• Technology
• Online sales
• Customization
Threats• Shift towards non-violent
games
• Economy
• Television technology
Recommendations – Short term
• Lower prices for gaming consoles
• Increased downloadable content on PlayStation Network
• Customized gaming consoles bundle packages
• Develop related industry productsHDTV, Audio Player etc.
• Ask game producer to develop TWO editions to each game
• Enhance anti-copy technology
• Peripheral products, Tees, toys etc.
• Cooperate with other game media, PC etc.
• Collaborate with Nintendo and Microsoft to gain market dominance
RecommendationsLong-term Recommendations
PC Play Station Cell Phone
Player 012
Player 008
Player 007
Player 002
Player 003
Player 005
Player 014
Player 010
Player 015
Player 013
Player 001
Player 004
Player 006
Player 011
Player 009
Recommendations – Long term
Develop related industry products
Ask game producer to develop two editions to each game
Enhance anti-copy technology
Peripheral products
Cooperate with other game media
Collaborate with Nintendo and Microsoft to gain market dominance
Conclusion
• Great Company with a successful globalization
• Problems in PS3 project
• For PS Dept.
Continue PS3 production or not?
R&D PS4?
What’s new?
How to?
Conclusion
Great company
Problems in PS3 project
PS Dept. needs to change
