The Making of Sony PlayStation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:			Price:
Case Code	:	BSTA089	Electronic Format: Rs. 300; Courier (within India):Rs. 25 Extra Themes -
Case Length	:	12 Pages
Period	:	1966 - 2003
Organization	:	Sony
Pub Date	:	2003
Teaching Note	:	Not Available
Countries	:	Global
Industry	:	Entertainment

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.

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

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