Damage Control: How Sony Can Regain the Lead By: Derek Chan Simon ...

Source: www.mcafee.cc
Topic: Xbox 360

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While the PS3 controller also has motion sensors the design of the ... The Xbox 360 comes with an Ethernet port and can use wireless with a separate ...

 

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Damage Control: How Sony Can Regain the Lead By: Derek Chan Simon Kung Nixon Li Andrew TanPage 1Damage Control: How Sony Can Regain the LeadBy: Derek Chan Simon Kung Nixon Li Andrew TanPage 21Console gaming is currently entering a new generation with the introduction of the SonyPlayStation 3 (PS3) Microsoft Xbox 360 and Nintendo Wii. Sony with its PlayStation 2 wasthe market leader in the previous generation with an estimated share of 70% while Microsoftand Nintendo split the rest of the market123. However Sony is in danger of losing market sharewith the PS3 mainly due to the PS3s significantly higher cost.The reason cost is so crucial is because it is one of the two most important attributes of agame console; the other attribute is game selection. Nintendo has differentiated its gameselection enough that it is not in direct competition with Sony and Microsoft. On the other handthe PS3 and Xbox 360 offer a similar collection of games. With the exception being forconsumers who display franchise loyalty (such as diehard Halo fans) there existed comparablesubstitutes between PlayStation 2 and Xbox games and there have been no signs that things willbe any different for the PS3 and Xbox 360. While the PS3 and Xbox 360 are comparable inrelation to game selection the basic model PS3 is 66% more expensive than the basic modelXbox 360 ($499.99 vs. $299.99)4. The price difference can be traced to the inclusion of a Bluray drive in every PS3. Sony has given Microsoft a major advantage in hopes that the PS3 willhelp it win a format war.Due to the PS3s significant cost disadvantage Sonys main strategic focus should beconvincing consumers that the PS3 is worth the higher price tag. We will focus on strategies theycan employ to do so.A main point of competition in the video game industry is product differentiation. Thisdifferentiation occurs in two categories: price and customers. How a console is positioned inthese areas is determined by its hardware and software; therefore we wi ...

 

 

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