Abstract

On 9 September, 1995, when Sony Computer Entertainment introduced the PlayStation game console in the North American market, it created history. In the very first weekend, more than 100,000 units were sold. In the first six months, over a million units were sold. Like Japan, America and Europe too embraced the PS-X as the next-generation console of choice. Released in 2000, PlayStation 2 (PS-2) sold more copies in a single day than any gaming console in history. Since then, the combination of superb hardware, ease of software development, and the CD format itself has made the PS-2 very popular. Experts opine that Sony's business model, by offering lower risk and more creative freedom for developers and publishers has made PS-2 the system of choice for the top game creators. Recently, Sony has faced competition from Microsoft's gaming console, the XBox. The XBox is positioned as the vehicle for delivering not just a gaming experience, but a whole gamut of entertainment avenues through Microsoft's MSN network. Sony plans to release PlayStation 3 (PS-3) by 2005. It has invested heavily in the fabrication line for the PS-3. The case can be used to explain how technologically sophisticated products are developed and marketed.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Sony, PlayStation II, PlayStation, Video games, Video gaming system, DVD, Microsoft, Vendor development, Linux, .Net, Entertainment industry, XBox, 8-bit, 16-bit, 32-bit systems, PlayStation Portable, PSP, Nintendo