>> Focus on Play Station Dept. Prepared by: Max Pearson Sukhee Youn (Saleisha) Jennifer Palahniuk Lin Liu (Austin) OCT 2009 3.5” Disc Introduction & Co. History Introduction & co. history • Founded in late 1945 Found in 1945 • Stock share became publicly traded in 1958 • 1980s, purchase Konica Minolta Stock share publicly traded in 1958 • Walkman, Betaman Player, MD Player, 3.5”MD Player disk, Memory Stick, DVD, Blue-ray Disc 1980s, purchasing Konia Minolta • Key point: Keep creating new…Standard maker Keep creating new and always changing the Walkman Player gets most profit world: walkman, MD, DVD, 3.5” etc.Disc DVD,Disc or a Blue-ray Betaman Player Industry Analysis History – 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 Industry Analysis National ID Number Verify Current Situation situation Industry - current low quality You illegal can log in game; & lowhowever, suggest you to copyweconsole A game discconsole is made for different tech in antiverify your ID the release crackprofit, spread the playingrisk limit. Motivation: more • Market Share 2009 Market share • Causing: more competitive between consoles Illegal copy 17% PS series (SONY) game producer losing console producer losing Protectprofit student from profit fallen in game, political for different consoles A game developed XBOX series (Microsoft) & culture issues. 57% 26% customer dislike Wii (Nintendo) Barriers the in some countries low console since no good game quality game One kindAnalysis of Controllers Industry for Wii console (Nintendo) key issues & future Industry – key issues &trend future trend • Desire of high quality in pictures and sounds • More illegal copy, and do NOT have useful High quality pictures and sounds method yet protect technology always comes with crack Anti-copy goes with being cracked methods • Multi-sensory playing experience Multi-sensory playing experience Sony Co. - Current Profile • • • • Poor Operating Incomes High Priced Consoles Strategies for profitability http://www.scei.co.jp/corporate/data/bizdat aps3_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.) Competitors - Nintendo Corporation Ltd. Founded in 1889 In 1977 - The first TV game In 1983, Start Video game business • Innovative game player •Innovative Networkgame Expansion player Nintendo DS, Wii, Wii Fit - Nintendo DS • Founded in 1889 - Wii - Wii Fit -Increasing Grows company size and profits • In 1977 market size The first Increasing market size Touch generation, Women, Old• people TV game - Touch generation -Network Domestic : Japan - Women Expansion -Grows Global : United States, German, France, company size and profits • In 1983, Start - Old people Domestic : Japan Australia, South Korea etc. Netherlands, Video game business Global : United States, German, France, Netherlands, Australia, South Korea etc Competitors – Microsoft Corporation Major IT company, Founded in 1975, “New Efficiency” • Major IT company • Xbox-Alpha-Dunks • Xbox 360, Xbox live EDD and Devices Division) •• (Entertainment $ 2,500 Lots of foreign subsidiaries -Founded Online based • in 1975 Xbox 360, Xbox live Stable Service Online based, Stable Service,-Internet Infra, • -“New Efficiency” Internet Infra games -Communicate Access global market easily gamers, with other Various - Meet the tastes of customers - Communicate with • EDD (Entertainment and other gamers Lots of foreign subsidiaries Devices Division) - Domestic -- Xbox Various -Access global: United marketStates easily 360 games - External nationof: Almost all over- the Xboxworlds Live -Meet the tastes customers -Domestic : United States -External nation : Almost all over the worlds Competitors – SEGA Corporation Founded in 1940, SErvice GAme of Japan Lots of loss Home video game player: SG100, Sega• Satern, • Subsidiaries • - Home video game player Dreamcast Sammy -- SG100 Oasis Park The greatest hit games: SonicLots of loss • InCorporation 2004, -- Sega Satern Secret Level collaborated In 2004, collaborated with Sammy Corporation - Sega - Dreamcast with Sammy • Founded in 1940 Sammy Holding Inc. Corporation • International Markets USA Subsidiaries • SErvice GAme of-Japan • - The greatest hit Sammy games • Sega Europe Sammy, Oasis Park Corporation, Secret Level - Sonic Taiwan Holding Inc. - France etc. International Markets USA, Europe, Taiwan, France etc. Company Analysis Hardware Software Sales Sales In Millions of Units 300 40 250 35 Hardware sales 13.3 57.9 9.12 30 54.7 200 25 150 20 3.55 Software sales 9.6 55.5 PSP PS2 14.1150.3 193.5 10 50 0 PS3 13.81 15 100 10.06 103.7 154 14.78 13.66 5 83.5 7.91 0 2007 2007 2008 2008 2009 2009 SWOT Analysis Strengths Weaknesses • Name Recognition • Internet usage • Backwards capability • 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 Recommendations– Long term Recommendations Long-term Recommendations Develop related industry products • Develop related industry products Ask game to develop HDTV,producer Audio Player etc. two editions to each game • Ask game producer to develop TWO editions to each game technology Enhance anti-copy • Enhance anti-copy technology Peripheral products • Peripheral products, Tees, toys etc. Cooperate with with otherother gamegame media • Cooperate media, PC etc. • Collaborate with Nintendo and Microsoft to Collaborate with Nintendo and Microsoft to gain gain market dominance market dominance Player 002 Player 001 Player 003 Player 005 Player 004 Player 006 Player 007 Player 015 PC Player 014 Play Station Player 013 Player 011 Player 012 Cell Phone Player 009 Player 010 Player 008 Conclusion Conclusion • Great Company with a successful globalization • Problems PS3 project Greatincompany • For PS Dept. Problems in PS3 project Continue PS3 production or not? R&D PS4? needs to change PS Dept. What’s new? How to?