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Prepared by:

Max PearsonSukhee Youn (Saleisha)

Jennifer PalahniukLin Liu (Austin)

OCT 2009

Focus on Play Station Dept.

Introduction & Co. History

• Founded in late 1945• Stock share became publicly traded in 1958• 1980s, purchase Konica Minolta• Walkman, Betaman Player, MD Player, 3.5”

disk, Memory Stick, DVD, Blue-ray Disc

• Key point: Keep creating new…Standard maker gets most profit Walkman Player

Betaman Player

MD Player

3.5” Disc

DVD, or a Blue-ray Disc

Introduction & co. history

Found in 1945

Stock share publicly traded in 1958

1980s, purchasing Konia Minolta

Keep creating new and always changing the world: walkman, MD, DVD, 3.5” Disc etc.

Industry AnalysisHistory – 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

• A game disc is made for different console• Motivation: more profit, spread risk

Causing: more competitive between consoles

Industry Analysis Current Situation

17%

26%57%

Market Share 2009

PS series (SONY)

XBOX series (Microsoft)

Wii (Nintendo)

National ID Number Verify

You can log in game; however, we suggest you to verify your ID the release the playing limit.

Protect student from fallen in game, political & culture issues.

Industry - current situation

Market share

Illegal copy

A game developed for different consoles

Barriers in some countries

• Desire of high quality in pictures and sounds• More illegal copy, and do NOT have useful

method yetprotect technology always comes with crack methods

• Multi-sensory playing experience

Industry Analysis key issues & future trend

One kind of Controllers for Wii console (Nintendo)Industry – key issues & future

trend

High quality pictures and sounds

Anti-copy goes with being cracked

Multi-sensory playing experience

Sony Co. - Current Profile• Poor Operating Incomes• High Priced Consoles• Strategies for profitability• http://www.scei.co.jp/corporate/data/bizdata

ps3_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.)

• Founded in 1889

• In 1977 The first TV game

• In 1983, Start Video game business

• Innovative game player - Nintendo DS - Wii - Wii Fit

• Increasing market size - Touch generation - Women - Old people

• Network Expansion

- Grows company size and profits

- Domestic : Japan- Global : United States, German, France,

Netherlands, Australia, South Korea etc.

Competitors - Nintendo Corporation Ltd.Founded in 1889In 1977 - The first TV game In 1983, Start Video game business

Innovative game playerNintendo DS, Wii, Wii Fit

Increasing market sizeTouch generation, Women, Old people

Network ExpansionGrows company size and profitsDomestic : JapanGlobal : United States, German, France, Netherlands,

Australia, South Korea etc

• Major IT company

• Founded in 1975

• “New Efficiency”

• EDD (Entertainment and Devices Division)

- Xbox 360 - Xbox Live

• Xbox 360, Xbox live - Online based - Stable Service - Internet Infra - Communicate with

other gamers - Various games

• Xbox-Alpha-Dunks• $ 2,500• Lots of foreign subsidiaries

- Access global market easily- Meet the tastes of customers

- Domestic : United States- External nation : Almost all over the worlds

Competitors – Microsoft Corporation

Major IT company, Founded in 1975, “New Efficiency” EDD (Entertainment and Devices Division) Xbox 360, Xbox live

Online based, Stable Service, Internet Infra, Communicate with other gamers, Various games

Lots of foreign subsidiaries-Access global market easily-Meet the tastes of customers-Domestic : United States-External nation : Almost all over the worlds

• Founded in 1940

• SErvice GAme of Japan

• Home video game player - SG100 - Sega Satern - Dreamcast

• The greatest hit games - Sonic

• Lots of loss

• In 2004, collaborated with Sammy Corporation

• Sega Sammy Holding Inc.

• Subsidiaries- Sammy- Oasis Park Corporation- Secret Level

• International Markets- USA- Europe- Taiwan- France etc.

Competitors – SEGA Corporation

Founded in 1940, SErvice GAme of JapanHome video game player: SG100, Sega Satern, DreamcastThe greatest hit games: SonicLots of lossIn 2004, collaborated with Sammy Corporation - Sega Sammy Holding Inc.

SubsidiariesSammy, Oasis Park Corporation, Secret Level

International MarketsUSA, Europe, Taiwan, France etc.

Company Analysis

2007 2008 20090

5

10

15

20

25

30

35

40

14.78 13.66

7.91

9.613.81

14.11

3.55

9.12

10.06

Hardware Sales

PS3PSPPS2

In Millions of Units

2007 2008 20090

50

100

150

200

250

300

193.5

154

83.5

54.7

55.5

50.3

13.3

57.9

103.7

Software Sales

PS3PSPPS2

Hardware sales

Software sales

SWOT Analysis

• Name Recognition• Internet usage• Backwards capability

Strengths Weaknesses• 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

• Develop related industry productsHDTV, Audio Player etc.

• Ask game producer to develop TWO editions to each game

• Enhance anti-copy technology• Peripheral products, Tees, toys etc.• Cooperate with other game media, PC etc.• Collaborate with Nintendo and Microsoft to

gain market dominance

Recommendations Long-term Recommendations

PC Play Station Cell Phone

Player 012

Player 008

Player 007

Player 002

Player 003

Player 005

Player 014

Player 010

Player 015

Player 013

Player 001

Player 004

Player 006

Player 011

Player 009

Recommendations – Long term

Develop related industry products

Ask game producer to develop two editions to each game

Enhance anti-copy technology

Peripheral products

Cooperate with other game media

Collaborate with Nintendo and Microsoft to gain market dominance

Conclusion• Great Company with a successful globalization

• Problems in PS3 project

• For PS Dept. Continue PS3 production or not?R&D PS4?What’s new?How to?

Thanks for WatchingYou may ask question now

Conclusion

Great company

Problems in PS3 project

PS Dept. needs to change