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Sony PlayStation 3 New Console Launch

1.If you were in charge of the Sony PlayStation 3 launch for the holiday season of 2006, how would you position the new console? (Who are you targeting and what value proposition are you highlighting?)

2.How worried should Sony be about the unexpected success of the Nintendo Wii? Is there anything Sony can do to ensure the Wii does not eat into PS3 adoption?

3.Given the way things had unraveled in 2007, what actions should Sony take to improve the performance of its PlayStation 3 in 2008 and beyond? (Consider all elements of the marketing mix; consider also the profitability of the PS3 from the sale of game titles).

4.If you were a game development firm, which of the three consoles would you be most willing to develop games for? How many units would you need to sell to break even on the development of one game title for the PS3?

5.How soon should Sony phase out its PlayStation 2?

6.Does Xbox 360's head start seem to have been effective? Who should Microsoft be more concerned about, the PS3 or the Wii?

Solution Preview

1) When SONY PS3 launched at November 2006, SONY focused more on positioning the new console as a Blu-Ray player, not as a gaming console. This positioning strategy alienated both electronic consumers as well as gamers alike. For electronic consumers, they don't know the full benefits of Blu-Ray disks yet (the Blu-Ray and HD-DVD battle was still alive back then). They are reluctant of trying out the new technology and they will probably not buy something called "PlayStation". For console gamers, they want to play games. They probably care less about what exactly a Blu-Ray disk is. If I were in charge of the PS3 launch at 2006, I would full-hearted positioned the new console as the "Ultimate Gaming Machine" by focusing on how technologically advanced it is compared to XBox 360 and Wii, and all the cool gaming features that were made possible by the new console. By enlarging the PS3 installment base, I will increase the "Blu-Ray player" installment base as well.

2) Sony should not worry too much the unexpected success of Nintendo Wii, because PS3 and Wii target different consumer demographics.
i) Hardcore vs casual gamers: PS3 players (teenager, and young professionals) are the traditional ...

Solution Summary

The solution examines Sony PlayStation 3 New console launch. The solution examines the target audience and the value proposition that is being highlighted with the launch. This launch is compared to the Nintendo Wii and the XBox 360.