Case 3

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Sony's next-generation video game console, the PlayStation 3 (PS3), was scheduled to launch

worldwide on November 17, 2006, a week away. Despite the dominance of the PlayStation 2
(PS2) in the last generation of game consoles, Stringer understood that past successes were no
guarantee of future success in the intensely competitive games industry, as other consoles of
different brands.

But the PS3 had an added value, in addition to being a video game console, it was a Blu-Ray
disc player. Blu-Ray was a next-generation optical disc format that contained more than five
times more information than DVDs and enabled owners of high-definition television sets
(HDTV) to view movies with an unprecedented level of picture quality. The PS3 was, in effect,
the "Trojan horse" of the Blu-Ray format.

Since entering the video game industry in 1994, Sony's ability to capture the attention of both
adult and child gamers has been impressive. However, as technology became more varied and
versatile, so did consumer tastes. Stringer knew it was critical that Sony keep consumers'
appetites both satiated and demanding more.

In 1983 the market had become saturated with multiple consoles and low-quality software,
completely ending consumers' appetite for games, that same year Nintendo entered the home
video game market, in an effort to avoid the quality problems that had occurred. Affected by
other game consoles, Nintendo focused on producing fewer but higher quality games.

Believing that a three-dimensional (3D) game could provide a more immersive experience than
a traditional two-dimensional (2D) game, Sony's PlayStation, released in 1994, was designed as
a fully three-dimensional machine. Ken Kutaragi, the main architect of PlayStation, believed
that gamers were eager to navigate 3D environments that were more realistic than side-
scrolling 2D games like Super Mario Brothers. Ready for the leap in complexity, gamers rushed
to buy the PlayStation.

With PlayStation, Sony managed to capture 60% of the US market in 1999, eclipsing Nintendo's
30% share and Sega's 5% share. Sony Computer Entertainment Interactive was tasked with
enhancing the success of PlayStation with its successor, the PlayStation 2 (PS2). With powerful
graphics and a faithful following of seasoned game development studios, the PS2, released in
October 2000, was once again a resounding success. One of the main features responsible for
the success of the PS2 was the additional functionality that the console provided to
consumers. The early PlayStation's ability to play audio CDs was considered a minor feature, as
many people already had CD players. But the PS2 had the ability to play DVDs. Released in
1996, DVD players had yet to become mainstream, and as of the end of 1999, they could only
be found in 11% of US households. The PS2 enabled consumers to improve their listening
experience watching movies while getting a cutting edge video game console.

Over time, they realized that buying talented development studios became a defensive
strategy. Measure for publishers to prevent competitors from acquiring top talent.

The launch of the Xbox 360 in November 2005 ushered in the first console war in which
Internet connectivity was a core component of all major hardware manufacturers. Before
Internet games, one of the main reasons to buy the most popular console was that it made it
easy to share games with friends. Internet games created the opportunity for a much deeper
experience, experience between owners of the same console. Users can now play together
online, create groups of friends they liked to play with, and monitor friends' progress through
various games.

For PS2 owners, Sony released a network adapter, sold separately for $ 39.95, allowing users
to connect via dial-up or broadband. It was then up to individual game developers to provide
an online experience for gamers despite significant variation in connection speeds. Sony gave
developers enormous freedom to shape the online experience however they see fit.

Sony would be entering the field of online video games with the PlayStation Network platform,
described as an "ecosystem" comparable to Microsoft's Xbox Live that would launch
simultaneously with the PS3. The platform would allow players to connect to the internet so
they can play against each other online, as well as communicate via email and live voice chat.

Different strategies were implemented for different audiences

Until the 1990s, video games were thought to be toys primarily for children and teens, and the
goal for console makers was simple: to target children. Eventually, the popularity of the games
grew to the point where entire generations were labeled the Atari or Nintendo generation. But
eventually in the 1990s, the first generation of video game players graduated from college,
entering the workforce and spending their income on video games. Sony owes much of the
PlayStation's success to an effective campaign targeting mature gamers looking for more
sophisticated and sophisticated games that put their gaming skills to the test. As Sony asserted
dominance of the industry, a new mantra spread across the world.

Nintendo began to develop other strategies under the criteria that having simple and fun
games with a target audience of children would achieve success, confident that its strategy
was solid, Nintendo advanced in the development of its next home console, Nintendo Wii,
bringing to the market a new type of controller that could detect three-dimensional
movement and acceleration. In a tennis game, for example, players no longer pressed a button
to swing the racket, but moved the controller like a real racket to hit the ball. Consumer
anticipation was very high as the Wii release date approached.

Some industry analysts believed that the PS3 would put Sony at the top of the video game
market for the foreseeable future. A communications services research and analysis firm
predicted that through 2010, the Sony PS3 would represent just over 50% of the installed base
of the next generation consoles, while Microsoft Xbox 360 would have 28.6% and Nintendo
Wii, 21.2%.

Sony's battle for video game supremacy is that every time a company is in a position to expand
it simply depends on the properties it owns.

Through the years improvements and updates were made according to Sony consoles, today
we know the PlayStation 5, It is the fifth desktop console of the PlayStation brand and the third
to be designed by Mark Cerny. Since its launch, the console has had two models: a PlayStation
5 console with a BD UHD-ROM disc reader and also for the multimedia function, and a digital
version called, PlayStation 5 Digital Edition without the reader.

The PS5 console competes against Microsoft's Xbox Series X | S and Nintendo's Switch
consoles to usher in the ninth generation of video games.

As a group conclusion, we believe that technological evolution gave a great step to the
industrial revolution that today can be seen in the development of new technologies, in this
case, videogame consoles that transformed people's daily lives. , giving the opportunity to
obtain technology-based entertainment that today is very normal.

On the other hand, we believe that both Sony, Nintendo and Microsoft, being in constant
competition, mutually favor each other since when taking out new trends, companies analyze
and study the purchasing behavior of customers and what their new demands are, for what
the products they offer can evolve and improve, meeting the needs and demands of
customers.

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