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PBM Case Analysis

Sony Playstation3

Abhishek Ram B11064

Piyush Pandey B11097
Mayank Anand Jha B11091

Problem Statement:
In spite of entering the video game console market in the late 90s, Sony had been able to become the market leader. Its products Playstation and Playstation 2 had been very successful. But its console Playstation 3 was not performing well. Playstation 3 was touted to be superior in technology compared to other consoles. It was powered by Cell Broadband engine which increase speed greatly. It also had Blu-ray disc player which enabled storage of large amount of data of high definition content. Due to these features price was kept in the range of 499-599. Microsoft had entered the gaming market with its own console Xbox. Microsoft was able to use its expertise in software development to develop its own gaming titles and also partner with third party developers. It was priced in the range of 299-399.Its other competitor Nintendo had come up with its gaming console Wii, which was priced at 249. Even though it was observed that its graphics were inferior to that of Sony and Microsoft’s, it was able to detect arm and hand motions which provided a realistic experience. This was very much prized by the consumers, which was reflected in its sales. Gaming titles for PS3 were available at 59.99 whereas for Wii it was available at 19.99-49.99 and for Xbox at 19.99-59.99. There was a dearth of gaming titles for PS3.
Hence, Sony needed to consider what to do for its seventh generation gaming consoles whether it should reduce prices and sustain losses for some time. It also needed to see whether Nintendo had a temporary success or done a game changing event which would mean considering either developing gaming devices for a larger audience or sticking to its hard core gamers.
Alternatives:
It may develop motion sensing

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