The Sony PlayStation
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In a mere three years (between 1995 and 1998) Sony, which began as an unknown in the game console market, grew in such a short time to the domination of the market. To illustrate why this happened, the authors use Porter's Five Force model, which was a satisfactory model to apply at that point in time. However, the continued growth in the industry and the major changes in players, suggests that a more valuable model -- the Four Ps of Product, Price, Promotion and Placement might be a more astute way to consider PlayStation 2, which is potentially the new market leader, a position that will not be won, however, without a fight. The reason for this assumption is the size of the market. An article in Time (Oct. 30, 2000) pointed out that the market has changed considerably since the "drop-a-quarter-in-the-slot days. It's now a $20 billion-a-year worldwide business. Last year [1999] games contributed more than $6 billion to Sony's sales and $730 million in operating profits" (Cohen, 2000, 58). The article emphasizes that Sony leads the market with 75 million first-generation PlayStations in existence (27 million of them in the U.S), but that the market is wide open, even with the advent (and distribution problems) connected with the release of PlayStation2. We will vary from the case study by emphasizing PlayStation 2, which represents the possible technological benchmark against which the competition must operate.
. . .
er CD-ROM, game sampler CD-ROM, and instruction manual
Yes
$299.95
X Box
128-bit Emotion Engine CPU, 494.12 MHz frequency, RDRAM, V-Point
Many addons
Yes
$199.95
When compared to Sega and Nintendo, the PS 2 with its features of DVD and VCD compatibility, and its backward emulation (all 800 games can be played), the PS 2 appears to be the better unit. But with Sega's emphasis on Internet connectivity and the ability to play games worldwide, it is still a contender. Likewise, Nintendo has announced its intention to stay in the race with a more powerful processor due out in October, 2001. The verdict is still out on the X-Box but beta testers, according to the Internet Chat Rooms suggest that it will be a formidable challenge.
However, the real success of the game console market is seldom attributed to specs, tech promises or price but is a direct result of the gaming experience. As a personal test, Doom 2 was played on a Dreamcast, N-64, PS1, PS2, and X-Box. The results of this subjective test are shown in Table 2, where certain attributes are graded A-F.
Table 2 Game Comparison
Unit
Speed
Graphics
Sound
Control
Internet
Dreamcast
C
B
B
C
A
N-64
. . .
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Approximate Word count = 1283
Approximate Pages = 5 (250 words per page)
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