The Making of Sony PlayStation

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Case Details:

Case Code : BSTA089
Case Length : 12 Pages
Period : 1966 - 2003
Organization : Sony
Pub Date : 2003
Teaching Note :Not Available
Countries : Global
Industry : Entertainment

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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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Introduction

Sony, the world's leading consumer electronics firm made a host of products, including PCs, digital cameras, Walkman stereos, and semiconductors. TVs, stereos, and other consumer electronic products accounted for more than 60% of Sony's sales. Sony also had a strong presence in the entertainment industry, including recorded music and video (Sony Music), motion pictures (Epic and Columbia), DVDs, and TV programming (Columbia TriStar). On September 9, 1995, when Sony Computer Entertainment introduced the PlayStation game console in the North American market, it created history.

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

In the very first weekend, more than 100,000 units were sold. In the first six months, over a million units were sold. By the end of 1996, more than 3.2 million PlayStation game consoles were being used in homes across North America.

Sony rapidly became a dominant force in the $30 billion video game market. Released in 2000, PlayStation 2 sold more copies in a single day than any gaming console in history. The next version PlayStation 3 was due for release by 2005. Sony also had plans to release a handheld gaming console called PlayStation Portable (PSP) by the end of 2004. The PlayStation was Sony's biggest hit since the launch of the Walkman in the 70s...

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