The presentations I completed with a group on Sony for my Economics class at Full Sail.

1. SONY CORPORATION OF
AMERICA
AMBER BATTLES, MEGAN KEARNS, D’MARCUS HOWARD & XAVIER HAMILTON

2. INTRODUCTION/OVERVIEW
SONY CORPORATION OF AMERICA, LOCATED IN NEW
YORK, NY, IS THE U.S. HEADQUARTERS OF SONY
GROUP CORPORATION, BASED IN TOKYO, JAPAN.
THEY ALSO HAVE 61 OFFICE LOCATIONS SPREAD
THROUGHOUT 46 COUNTRIES. SONY'S PRINCIPAL
U.S. BUSINESSES INCLUDE SONY ELECTRONICS
INC., SONY INTERACTIVE ENTERTAINMENT LLC.,
SONY PICTURES ENTERTAINMENT INC., SONY MUSIC
ENTERTAINMENT AND SONY MUSIC PUBLISHING.
SONY RECORDED CONSOLIDATED ANNUAL SALES OF
APPROXIMATELY $76.67 BILLION USD FOR THE
FISCAL YEAR ENDED MARCH 31, 2020 AND
EMPLOYS APPROXIMATELY 114,400.

3. MARKET DESCRIPTION/HISTORY OF THE COMPANY
▸ Masuro Ibuka opened an electronics shop in Tokyo, Japan in 1946, during the beginning of World War II.
▸ In 1947, Ibuka, along with Akio Morita, founded Tokyo Tsushin Kogyo, which built the
fi
rst tape recorder
called the Type-G.
▸ SONY became the of
fi
cial name of the company in 1958.
▸ Morita founded SONY corporation of America in 1960.
▸ In 1979, SONY created a life insurance company.
▸ During the 1970s and 80s, compact discs were developed and there was a drop in electronic sales.
▸ In the 1990s, the PlayStation was developed.
▸ SONY purchased CBS Records and Columbia Pictures in 1989.

4. MARKET DESCRIPTION/TOP COMPETITORS
▸ Microsoft
▸ Apple
▸ Philips
▸ Qualcomm
▸ Samsung
▸ Sony Ranks 2nd in product quality
(Apple comes in 1st)
▸ Sony ranks 3rd in Net Promoter
Score, Pricing Score and Customer
Service (Apple 1st and Microsoft
2nd)

5. MARKET DESCRIPTION/REVENUE STREAMS
▸ On the PlayStation store, Sony is
charging Developers up to
$200,000 for a better placement.
They charge $25,000 just to be
seen on the PS store.

6. SOURCES OF INCOME
▸ Game & Network Services
▸ Music
▸ Films/Motion Pictures
▸ Electronic Products & Sensing Solutions
▸ Imaging & Sensing Solutions
▸ Financial Services

7. COMPETITIVE STRUCTURE
▸ Oligopoly Type Market - a market form in which a market is dominated by a
few number of producers and sellers
▸ Sony’s pro
fi
t depends on what other corporations do.

8. FACTORS AFFECTING DEMAND
▸ Consumer's Income
▸ Price of Related Goods
▸ Tastes Within the Market
▸ Expectations Within the Market
▸ Number of Buyers
▸ Elasticity

9. CONSUMERS INCOME
▸ Median household income was $67,521 in 2020, a decrease of 2.9% from
2019
▸ Average annual wage in 2019 was $51,916.2

10. PRICE OF RELATED GOODS
▸ Sony is competing with Microsoft, but it is doing so while maintaining the
higher price. If Xbox price goes up, Sony will make sure their PlayStation is still
more expensive. The PlayStation 5 is already expensive because of the chip
shortage, making it a high demand item.
▸ If Sony made the PlayStation 5 cheaper, it would make Xbox look like a better
product, pushing the demand down.

11. TASTES WITHIN THE MARKET
▸ Arti
fi
cial Intelligence (AI) and Machine Learning
▸ Robotic Process Automations (RPA)
▸ Virtual Reality and Augmented Reality
▸ 5G
▸ Cyber Security
▸ Online Payments/Shopping
▸ Curbside/Pickup Orders
▸ Contactless Payments/Service

12. EXPECTATIONS WITHIN THE MARKET
▸ Technology that tailors to the consumer's needs
▸ Personalized marketing
▸ Better customer service with increased online sales

13. NUMBER OF BUYERS (FACTORS AFFECTING)
▸ Price of Product
▸ Consumer's Income
▸ Price of Related Goods
▸ Tastes/Preferences of Consumers
▸ Number of Consumers in the Market

14. ELASTICITY
▸ Keeping prices higher than competitors, price change should not affect the
business too much, as long as Sony stays above the competitor prices.
▸ To drop the prices below or equal to competitors may affect the consumer's
idea of product quality, leading to a decrease of sales.

15. FACTORS AFFECTING SUPPLY
▸ Input Prices
▸ Technology
▸ Expectations
▸ Entry/Exit
▸ Number of Establishments in the U.S.
▸ Impact of Covid

16. INPUT PRICES
▸ Consumer Price Index climbed 7% in 2021
▸ Container and vessel shortages have caused ocean prices to quadruple over
the past year
▸ Lack of truck drivers
All of these things are going to drive the cost of supplies up, because it's going to
cost more to make,
fi
nd, and deliver.

17. TECHNOLOGY
▸ Cloud Computing- saves money on paper,
fi
ling cabinets, and other of
fi
ce
supplies.
▸ Automations and AI- manage payments and invoices to reduce human error
▸ Customer Relationship Management Software (CRM)- helps maintain and
develop connections with customers
▸ Teleconferencing- fully remote and free options available
▸ Webinars- a digital experience to help exchange information

18. EXPECTATIONS
▸ Sony lowered its full-year
PS5 sales forecast from 14.8
million units to 11.5 million
units due to chip shortage
▸ Sony is expecting more
music streaming and digital
cameras as PlayStation
software sales and
subscriber additions sow
post pandemic

19. ENTRY/EXIT
▸ With Sony being a large company within the electronics market, new
competitors will
fi
nd it hard to enter the market. There is already too many big
competitors within this market, a new one will most likely not make it.

20. NUMBER OF ESTABLISHMENTS IN US
▸ 6 Of
▸ Sony Corporation of America
Locations
▸ Sony Corporation of America is
headquartered in New York, NY and
has 6 of
fi
ces located throughout the
US.

21. WHAT IMPACT HAS COVID HAD ON YOUR BUSINESS?
▸ Game & Network Service- No material Impact
▸ Music Segment- delays in new releases, interruptions in supply chains for physical music and
media, decrease in music licensing. Concerts and live events canceled or postponed including all
Sony-sponsored performances.
▸ Picture Segment- temporarily shut down all production, pushing back release dates for some titles.
▸ Electronics Products and Solutions Segment- Malaysia manufacturing plant shut down and
fl
ow of
resources from suppliers in Asia have become unstable.
▸ Imaging and Sensing Solutions Segment- No material impact.
▸ Financial Services Segment- No material impact.

22. REFERENCES
▸ Fusci, Preston, and Preston Fusci (461 Articles Published) . “Sony Reportedly Makes Developers Pay for Crossplay Support.” Game Rant, 3 May 2021, https://gamerant.com/sony-reportedly-makes-
developers-pay-crossplay-support/.
▸ Grubb, Jeff. “PlayStation 5 Price: How Does Sony Choose What to Charge?” VentureBeat, VentureBeat, 15 Sept. 2020, https://venturebeat.com/2020/09/15/playstation-5-price-how-does-sony-choose-
what-to-charge/.
▸ Hashimoto, Kazuma, and Kazuma Hashimoto. “Sony's Game and Network Services Revenue Totals 25 Billion Dollars.” Siliconera, 28 Apr. 2021, https://www.siliconera.com/sonys-game-and-network-
services-revenue-totals-25-billion-dollars/.
▸ “In-Ear & over-Ear Headphones: Sony US.” In-Ear & Over-Ear Headphones | Sony US, https://electronics.sony.com/audio/headphones/c/all-headphones.
▸ Laricchia, Federica. “Sony Sales by Business Segments 2012-2020.” Statista, 14 Feb. 2022, https://www.statista.com/statistics/297533/sony-sales-worldwide-by-business-segment/.
▸ Laricchia, Federica. “Sony Sales Share by Business Segment 2020.” Statista, 14 Feb. 2022, https://www.statista.com/statistics/279272/proportion-of-sonys-sales-by-business/.
▸ Lynch, Gerald, et al. “Ps5 Vs Xbox Series X: Which next-Gen Console Should You Buy?” TechRadar, TechRadar, 1 Feb. 2022, https://www.techradar.com/news/ps5-vs-xbox-series-x-which-next-gen-
console-should-you-buy.
▸ Murray, Sean, and Sean Murray (5577 Articles Published) . “Sony Charging Developers up to $200,000 for Better Placement on PlayStation Store.” TheGamer, 30 June 2021, https://www.thegamer.com/
sony-charging-devs-200k-placement-PlayStation-store/.
▸ Sony Competitors - Comparably. https://www.comparably.com/companies/sony/competitors.
▸ Sony Corporate Headquarters, Of
fi
ce Locations and ... - Craft. https://craft.co/sony/locations.
▸ “Sony Corporation of America Businesses – Operating Companies.” Sony Corporation of America Businesses – Operating Companies, https://www.sony.com/en_us/SCA/who-we-are/overview.html.
▸ “Sony Corporation.” Sony Corporation - 2082 Words | 123 Help Me, https://www.123helpme.com/essay/Sony-Corporation-322829.
▸ “Sony Cost of Goods Sold 2010-2021: Sony.” Macrotrends, https://www.macrotrends.net/stocks/charts/SONY/sony/cost-goods-sold.