This website uses cookies to ensure you have the best experience. Learn more

Game Business Strategy Essay

5489 words - 22 pages

Sony Corporation and the Video Game Console Market: 1 A Competitive Analysis

By Ryan Bogner, Peter Hung, Guan Wang, and Steven Wang

This report evaluates Sony Corporation’s strategy in the console gaming market from the top-down perspective of the entire corporation.


Executive Summary Sony’s current strategy in the video game console market is simple: use the technologically superior Playstation 3 as a loss leader to introduce the Blu-ray optical drive2 into consumers’ homes and leverage that market penetration to drive content sales once Blu-ray is established as the de facto standard for optical storage. It is therefore in Sony’s interest to reach the tipping point for ...view middle of the document...

The three main competitors are Nintendo, Sony, and Microsoft. The three are fairly dichotomous, either innovative and user friendly or technologically pushing the envelope. Nintendo has made its mission to do the first.4 Sony and Microsoft both fall in to the latter category. Thus, safe in a fairly differentiated position, Nintendo is in a dominant position in the marketplace. It has the expertise and reputation to not only maintain its position, but push out would be competitors. This has paid off and Nintendo sales of the Wii are far outpacing original expectations. Sony is no longer dominating the market, and compared to the previous distribution of demand for gaming consoles is losing significant ground. In terms of market share, Microsoft has stayed in about the same position as the previous generation of consoles. (See Figure 2.) The consumer market is segmented mainly by age. The casual gamer, consumers who do not treat gaming as their main source of entertainment, represents 36 percent of the market.5 This

A Blu-ray optical drive plays high density Blu-ray disks up to ten times the capacity of current DVDs. For more information, please refer to the “Blu-ray Disc” entry on Wikipedia, available at 3 “Annual US Video Game Sales,” The NPD Group, 4 “The development of games that are more complex and graphically intense has been the focus of game companies for too long. . . . Nintendo has implemented a strategy, which encourages people around the world to play video games regardless of their age, gender of cultural background. Our goal is to expand the gaming population.” – Satoru Iwata, Nintendo President & CEO, in Nintendo’s 2006 Annual Report 5 “Annual US Video Game Sales,” The NPD Group,


group tends to be between the age of 18 and 24 and white.6 Nintendo is aggressively courting non-traditional gaming groups outside this traditional profile in an attempt to increase the size of the console market. In contrast, Sony and Microsoft court the “hardcore” gamer and expect console sales to trickle down to more casual gamers. These companies focus on serving their existing customer base, a group that views gaming as their primary source of entertainment. This “hardcore” group, which represents 11 percents of the market 7 , is more likely to play competitively and tend to buy more games and spend more time playing games than casual gamers. This divergence of strategies is perhaps best illustrated by the marketing strategies of each company. Whereas Nintendo’s advertising consists of smiling, racially diverse groups waving around the Wiimote (wireless remote), Sony and Microsoft rely on less traditional means. Sony recently garnered much controversy over its Astroturf (fake grassroots) marketing strategies, including hiring spray painters to paint graffiti images of their...

Other assignments on Game Business Strategy

Marketing Plan Essay

1924 words - 8 pages an effective learning environment (Williams, 2011). In this respect, more and more business schools and companies emphasize the usage of business simulation game in their curriculum. As a result, this trend affords the potential market opportunity for the business simulation products. 4. Product Attractiveness Sim Venture is a Window-based business simulation game. It requires the player to formulate a strategy and make strategic

Jc Penney Essay

388 words - 2 pages a competitive advantage by changing the way Penney’s does business. His ideas are innovative and are being responsive to customers. Finally by offering brand names he is promoting quality over cheaper in-house labels. 3. Ron Johnson has established the mission and vision with his vision on how Penney’s needs to change to become competitive. He has established the grand strategy by assessing Penney’s current performance and lays out the


751 words - 4 pages mission is different with strategy objective. * Mission Why the company exist? * Values what the company believe in and how we will behave? * Vision What the combany want to be? * Strategy What their competitive game plan will be? Even two companies in the same business will have the same strategic objective. As a result, it is not a very good one. The strategic objective should be specific, measurable, and time bound. It should


2159 words - 9 pages associated with -$.5, -$.5. 4. Refer to the game in Scenario 1. What will occur if Lawrence LLP plays a maximin strategy? a. b. c. d. -$100, -$1 $50, -$.5 $1, -$1 -$.5, -$.5 Page 2 of 10 Consider the game shown in Scenario 2, below IVY Corp Business Plan A Business Plan B SAC Group Business Plan Business Plan Y Z $1, $10 $1, -$5,000 $4, $0 5. In the Scenario 2 game, a. b. c. d. Y is a dominant

Capsim Project Paper

787 words - 4 pages group members could not make it. Our group chose to discuss the game as a whole, rather than sectioning it up to make sure that everyone was on the same page. We didn't have any conflicts in our decisions and actually got along very well. Overall as a group we thought Capsim had its advantages and disadvantages. We did learn a lot about the different aspects that go into a business which could help us in our careers later on in life. At times

Topics 1 And 2

598 words - 3 pages Brad McPherson / Article Summaries Topics 1&2 / Strategy and Marketing Strategies for Learning from Failure – Amy C. Edmondson – Strategy Failure is being looked at the wrong way (Edmondson, 2011). Failure can be an important learning tool for organizations around the globe. If analyzed correctly and quickly, but also implemented effectively, failure can transform negative situations into positive growth. Failure is generally discouraged

Protec And Gamble

272 words - 2 pages experience has proven that price promotion may win a quarter here and there, but innovation wins decades”. (Citation needed)   There many examples to prove this, the company’s laundry business in the U.K., for instance. In the late 1970s, the company was competing hard to defend and maintain its 35% market share leadership position. In the three decades since, P&G stepped up innovation efforts which introduced a series of game-changing

Strategic Management

1180 words - 5 pages 1. What is strategy? What isn’t strategy? According to word of play text strategies are choices (bundle of choices) 2. List several ineffective ways to approach strategy. 3. Should winning be at the heart of any strategy? Yes. If you don't play to win, don't play at all. Satan didn't play to win it played to have a holding position in the environment net effect- it disappeared. 4. What are the 5 choices of strategy? What do you play

David And Goliath

303 words - 2 pages In the article "How David Beats Goliath” uncovers the secret to victory as an underdog. An underdog is someone who is seen to be less than or having an disadvantage. The secrete to overcoming a strong opponent is to combat the opponent with a non-traditional approach. If ones opponent is strong in a specific skill set, it is wise to craft at strategy the works against their weakness. In the article Vivek Ranadive coached a basketball team

Organizational Development

1954 words - 8 pages 2.Strategic Business Unit A strategic business unit is a par of an organization for which there is a distinct external market for goods or services that is different from another SBU. - External criteria: customers type, market competition, sorts of channels - Internal criteria: strategic capabilities resources and competences 3. Bases of competitive advantage Competitive strategy is connected with the basis on which a

Jay Congers

284 words - 2 pages Compromise Brings Benefits Jay Conger’s article The Necessary Art of Persuasion presents excellent strategies on how to become a better persuader. To reach any goal, business people need support and cooperation, but many fail to realize the contribution compromise brings to a “debate”: it motivates the other party to consider the opposite point of view. Conger’s insistence that compromise be part of a persuasive strategy recognizes the value

Similar Documents

Marketing Essay

5278 words - 22 pages Contents Contents 2 1. Introduction 3 2. Development 5 2.1 Concept Development 5 2.2 The Process of Development 7 2.3 Testing video game before release. 9 3. Game Marketing 11 3.1 Marketing Strategy 11 3.2 Your media channels 15 3.3 Distribution Platforms 16 4. Bibliography 17 1. Introduction Interactive entertainment industry (sometimes referred to as the video game industry) is the economic sector involved

Poker In The Business Wolrd Essay

1644 words - 7 pages are set, a business will try to go around the rules as much as possible but without breaking them. If the bluffing is within the rules and no one has been hurt then bluffing is completely ethical. In conclusion, bluffing in the business world should be considered a fair strategy to use while playing the game of business. Not only does it help you maximize profits but it also puts oneself at an advantage against everyone else

Dogs Essay

325 words - 2 pages oversupplied in a few years due to the building of new chemical plants and a drop in demand. Pacific only needed to secure an extension from Reliant to enable them to maintain operations for just a while longer or until they could come up with a new business strategy for the future. There is nothing to suggest that Pacific had any incentive to maintain a relationship with Reliant after that time. Although Pacific was considering becoming a producer of PVC

Dota2 Essay

695 words - 3 pages massive, that millions of them all over the world are getting involved ito it. Many other people are encouraged and influenced to play this strategy game that led to their addiction. Background of the Study Drawing inspiration from a popular Defense of the ancients, the first version of DOTA2 was released in the middle of 2010 by Valve Corporation. Since it was first started, many teenagers aging from 13-19 played DOTA (DEFENSE OF THE