PS3: Sony on the Run (Case #10, Notes)
Overview
Sony, one of the most recognizable global brands, has long been the world's most valuable electronics firm, by stock market value. Currently its market value is less than half of Samsung's, a direct competitor. Sony, never a typical Japanese firm, has been financially hurt from broad investments & increased outsourcing. In recent times, Sony has been buoyed by the constant stream of PS2 revenues. Without such protection in the past, the company would have been in dire financial distress. With the life-cycle of the PS2 coming to an end, Sony looks to retain its dominance in the current 3rd generation videogame market. The highly competitive market, still in its infant stage, is up for grabs.
In this case, we intend to illustrate the importance of the PS3's marketing strategy for not only its success of but also Sony's broader corporate profitability. In doing so, we also propose the marketing dilemmas Sony will need to overcome in order to achieve the PS3's desired success.
Discussion Questions
1. What were the past strengths of the PlayStation line?
2. How should Sony promote the PS3 and Blu-ray technologies in the future?
3. Which target market should Sony go after? How?
4. How should Sony position itself against the Xbox 360/Wii?
5. If you were Sir Howard Stringer how would you improve Sony's position when bringing the PS4 to market?