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Complaints on PlayStation 3 - Case Study Example

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The present case study "Complaints on PlayStation 3" is focused on the fact that a few months after its entry into the market, demand for PS3 had fallen, and soon dealers had reported more returns than sales. Reportedly, this Tretton attributed to bad publicity on the part of the media…
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Complaints on PlayStation 3
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Download file to see previous pages On the other hand, the major complaint, according to dealers, was that customers complained Playstation 3 cost more, but did not perform better, than Xbox 360; PS3 also had fewer titles comparable to Xbox 360 and had compatibility problems.
1. Sony failed to anticipate the developments of its competitors. Xbox 360 by Microsoft and Wii by Nintendo had launched much earlier than PS3, and these had already elevated the standards that customers were expecting from the products that followed. Sony did not look forward to forecasting the features of these products that have already captured the market, in order to determine what features it should offer in order to challenge what they already have.
2. Sony likewise failed to monitor the prices of its competitors. The market for gaming is limited by the price gamers would want to pay for it. If products already in the market have just the same features but are much cheaper, the public will go for the lower price; since Sony had not provided features significantly superior to Xbox 360, then its higher price at $600 would convince buyers that the comparable Xbox 360 is a better buy at $400.
3. Sony had made too many promises and created too much hype before the launching. This heightened consumer expectations maybe even beyond what Sony intended. Since Xbox 360 and Wii launched earlier, customers most likely were led to believe that Sony’s advertising and press claims meant PS3 would be an experience far beyond either of them.
4. The timing of the launch was a big mistake. Sony’s delay in releasing PS3 into the market failed to take advantage of strong market demand, particularly during the holiday season, allowing Xbox 360 to gain a firmer foothold in the market. This mistake was compounded by Sony’s additional costs meant to repair the damage, in launching an expensive ad campaign, only to convince the public to hold off buying Xbox 360 and Wii during the holidays and to wait for PS3. ...Download file to see next pagesRead More
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