SONY PLAYSTATION PORTABLE

Pranav SabhaneyMA - Digital Media Management

SONY PSPThe Product

Market & Other Players

The PSP lets you access games, videos, music and photos at anytime and lets you share them with your friends.

The offering is great value gaming while on the go.The PSP is the only handheld video-game console to use an optical disc format – UNIVERSAL MEDIA DISC as

its primary storage medium. Other interesting features are its large viewing screen, infinite multi-media capabilities and connectivity with the

Playstation2, Playstation3, other PSP’s and the Internet.

Sony’s PSP is in the portable gaming/handheld gaming console market space.These are consoles smaller than video game consoles and contain the console, screen, storage, buttons and

speakers in one unit allowing people to carry it anywhere, anyplace.

There are quite a few players in this market and of the many the most notable one is the Nintendo DS

Sony's biggest competition is likely to come from Nintendo's newest portable system, the Nintendo DS. The DS features two screens, one of which is a touch-sensitive pad like you'd find on a laptop. The screens can also

be used for innovative game design, showing different information on each of the screens.

HARMFUL BELIEFS

Sony PSP

They firmly believed that they were in the industry of Portable Gaming/Handheld Gaming Consoles

They had a strong belief that Nintendo was their biggest competition

Loyal PlayStation users and Gamers On-The-Move were believed to be their customers

The value they thought they provided was a high quality gaming experience while traveling

CASE FOR CHANGE

Decline in Revenue

It has been a tumultuous life cycle for the PSP.  It started off being lauded as the ‘future of handhelds’ and a sure-fire successor to the throne that had been occupied by Nintendo pretty much since the beginning of time

when they released the Gameboy.Sony's PSP has been suffering declining hardware and software sales of its own. From 2005 through 2008, the

handheld has achieved sales of nearly a million units in the U.S. in the final month of the year. Yet in December 2009 Sony sold just over 650,000 of the handheld.

CASE FOR CHANGEDisruptors

Digital content distribution has disrupted several notable industries. With the original iPod and the iTunes store, Apple changed the face of the music industry. Likewise, digital content distribution has starkly disrupted

news, magazines, books, shows, films and more.Recently the portable gaming industry has taken the biggest hit. Leading the disruption are iOS and Android devices, with its free and inexpensive games accompanied by mobile and tablets form factors and have

already disrupted billions of dollars of game revenue.Portable gaming primarily has been dominated by Nintendo with the DS and Sony with the PlayStation Portable

(PSP)In this model, at retail, consumers pay around $200 for the gaming device and up to $40 for popular game

cartridges.

Apparently, Christmas morning

went like this for a ridiculous

number of people. Wake up, go to

tree. Unwrap smartphone. Give

requisite thanks. Immediately

download Angry Birds. That

approximate scenario, according to

Rovio happened 8 million

times.

DISRUPTION

MOBILE GAMING

smartphone

tablets

download stores

The most striking trend is that iOS and Android games have tripled their market share from roughly 20% in 2009 to nearly 60% in just two years. 

Simultaneously, Nintendo, the once dominant player, has been crushed down to owning about one-third of market in 2011, from having controlled more than

two-thirds in 2009.The freemium game model is revolutionizing and expanding revenue on mobile devices. And just as smartphone game revenue has climbed aggressively, Nintendo DS and Sony PSP revenue has dropped

precipitously.Smartphones are now capable of delivering a good quality gaming experience

especially at the casual end of the market. This pushes dedicated consoles into an even smaller niche.

The new trend - Low Quality over High Quality which translates into Accessibilty

WASTE & VALUE GAPSWhat are value

gaps?Things customers don’t wantThings not doneThings done badlyThings done expensivelyThings done inefficientlyThings done disconnectedlyWaste of Time & EnergyEnvironmental WasteHuman Waste – Fears, Doubts and Uncertainties

I don’t need a PSP. My iPhone does the

same and more.

Karan Reddy, 22

I love gaming in my free time but the PSP is a waste of my

money.

Gustavo Bechtold, 28

It takes up so much space in my bag. I’ve

hardly been using it.

WastageBased on some ethnographic research and a brief customer activity cycle, it was noted that the PSP despite offering services such as WiFi, Internet, Audio and Video, the customers preferred to buy alternatives like the

iPhone because the mobile enables them to do multiple tasks efficiently. The PSP was looked down upon because of reasons such as waste of money, waste of space, fear of it not

being durable and the fact that the UMD’s were expensive as well.The users did not look at the PSP for multipurpose usage.

Mayanka Somiah, 24

CURRENT SITUATION

Sony PSP as a Track 1 company

PRODUCT FOCUSED

The sale is the end transaction where value is providedInnovation is based on incremental improvements in product and service - From PSP to PSPGo to PSP VITA

CURRENT JOURNEY

user retail store/internet

retail store/internet

to buy console to buy game

PlayStation Network

to play against friends

OPPORTUNITYCurrent Market

SpacePortable gaming and Handheld consoles

Future Market Space

Control over home environment while on-the-go

Convenient Home Solutions

universal remote

home security

“From a PRODUCT oriented market space to a

CUSTOMER focused market space”

TO

CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GO

Universal Remote

The PlayStation Portable currently offers a vast array of features such as WiFi, Audio and Video, Connectivity to the PS2 and PS3 and connectivity to the television or computer as well. There are various usages but is pre-

dominantly used for gaming.A household insight is that people do not like too many remote controls because more often

than not they get lost or spoilt.The solution is for Sony with it’s PSP to become a UNIVERSAL REMOTE that could control every household

product/service like the Fridge, Television, Air Temperature Control, Microwave, Electricity, Water.This solution dismisses the problem of having too many devices for multiple purposes. This also solves the

problem of space and money.The user can now access everything he/she owns with the touch of a button.

Solution 1

CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GO

Home Security

Sony has a wide range of electronic products which belong to both sides of the money chain. People get attached to things that they own or are close to them and hence take care of those thing more.

It is a normal human behavior to be secure of the things they own and hence have a peace of mind and be able to carry on each day almost hassle free. Sounds like a dream but currently is not at its best.

Voila! The solution - SONY PSP is a device that is portable and can be used/accessed while on-the-move. Sony would tie up with a home security system and get access to the technology they provide. The PSP will then be the platform the user uses to keep a check on his/her home. Even when they are on-the-move and away from

home, they have complete control.It works as a simple notification system. If the house is being robbed, then the user will be immediately notified

and then in turn can alert the police. This smart system will be useful to the user because they can activate/deactivate anything they want in the house as well as notify authorities as soon as possible. This doesn’t allow

delay and hence in turn protect and safeguards the user’s property. All this can be achieved and still the user can enjoy the PSP and play games.

Solution 2

HOW WILL THIS DRIVE UP REVENUE ?

CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GO

simplicity accessibilitybeyond

gaming & youth

internet as purchase

platform

The user interface of this will be so simple to use and the sheer simplicity will attract consumers to purchase the product because it doesn’t require them to be tech savvy.

Carrying on the tradition of the PSP of it being accessible anywhere, anyplace and anytime, the solutions provided will be easily accessible to the user and will have full control and access over their home.

The PSP was targeted to a niche segment (youth). The solutions provided help enable every kind of individual to have access and full ownership and control of their home. This is a solution which attracts all age brackets.

The vast growth of internet consumption and purchase of electronic goods(via Ecommerce) will be the vehicle that will help in promotion and purchase of the solutions.

FROM AN OS1(PRODUCT FOCUSED) TO ANOS2 BRAND (CUSTOMER FOCUSED) AIMING TOWARDS BEING OS3

SUMMARY & STRATEGIC RECOMMENDATIONS

The Desired Outcome

Market Space

The New Value Chain

Pushing Sony towards providing a breakthrough value in the form of the home security solution and the universal remote. From selling a portable gaming console to providing the best solution of controlling home environment. From

being product focussed to being more customer oriented.

Initially the PSP was targeted to a small yet niche audience (gaming centric) but now they will attract all kinds of people and maybe explode into the woman market with a product that was initially designed to never attract them.

The Home Security solution works like a concierge service as well. So, the relationship with the user is maintained and doesn’t end with the purchase of the PSP.

Opening up doors to a new market space which is waiting to be dominated by Sony.

Effective cost solutions by taking out cost spent on controlling gadgets, remotes by providing a multi-purpose solution

Customer Activity Cycle

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Web.archive.org.PlayStation Portable on PSP News: E3 2003: PSP Press Release - GameDailyIn-text: (Web.archive.org 2003)Bibliography: Web.archive.org. 2003. PlayStation Portable on PSP News: E3 2003: PSP Press Release - GameDaily. [online] Available at: http://web.archive.org/web/20080323190851/http://www.gamedaily.com/games/playstation-portable/psp/game-news/e3-2003-psp-press-release/4356/3143/ [Accessed: 19 Jun 2013].

Community.us.playstation.com.Decline in PSP software & hardware: Should Sony wo... - PlayStation® Community ForumsIn-text: (Community.us.playstation.com n.d.)Bibliography: Community.us.playstation.com. n.d.. Decline in PSP software & hardware: Should Sony wo... - PlayStation® Community Forums. [online] Available at: http://community.us.playstation.com/t5/PSP/Decline-in-PSP-software-hardware-Should-Sony-worry/td-p/2234688 [Accessed: 19 Jun 2013].

Gaulian, O.Jeanne D’arc | A Most Agreeable PastimeIn-text: (Gaulian 2011)Bibliography: Gaulian, O. 2011. Jeanne D’arc | A Most Agreeable Pastime. [online] Available at: http://amostagreeablepastime.wordpress.com/tag/jeanne-darc/ [Accessed: 19 Jun 2013].

Blog.flurry.com.Is it Game Over for Nintendo DS and Sony PSP?In-text: (Blog.flurry.com 2011)Bibliography: Blog.flurry.com. 2011. Is it Game Over for Nintendo DS and Sony PSP?. [online] Available at: http://blog.flurry.com/bid/77424/Is-it-Game-Over-for-Nintendo-DS-and-Sony-PSP [Accessed: 19 Jun 2013].

Liu, R.Android, iOS overtake Sony PSP, Nintendo DS in US portable game revenueIn-text: (Liu 2013)Bibliography: Liu, R. 2013. Android, iOS overtake Sony PSP, Nintendo DS in US portable game revenue. [online] Available at: http://www.slashgear.com/android-ios-overtake-sony-psp-nintendo-ds-in-us-portable-game-revenue-09194335/ [Accessed: 19 Jun 2013].

Thier, D.Angry Birds Racks Up 8 Million Downloads in One DayIn-text: (Thier 2013)Bibliography: Thier, D. 2013. Angry Birds Racks Up 8 Million Downloads in One Day. [online] Available at: http://www.forbes.com/sites/davidthier/2013/01/04/angry-birds-racks-up-8-million-downloads-in-one-day/ [Accessed: 19 Jun 2013].

All icons are from - http://thenounproject.com

The new value chain model by Paul McCabe

THANK YOU !@mrcrazyps