Cacchiotti Consulting Group
    Bogdan, Lauren, Alicia, Jeffrey, Cassandra, Curtis
                                     Ma...
Strengths
 Power
   • The Cell Processor versus
   the Xenos Processor
 Unique Technology
   • Backwards Compatability
 ...
Weaknesses
  High price relative to other gaming systems

 Playstation Network still playing catch-up with
  Xbox Live
...
Opportunities
                           International World Market
       Online Service
                         •Worldw...
Production Cost                             Production Cost
         $448.73                                       $158


...
Console Usage < 18 Year Olds




                             Wii [58.3%]
                             XBOX 360 [42.2%]
  ...
Lowering MSRP




 Older game systems very
     Back to basics
 Take out blu-ray player
        successful
Increase Game Developers
             Problem: games made for
            XBOX, not PS3
               • time release
   ...
Recommended Strategy

  Family-centered games

 Increased functionality
 International marketing
Grand Turismo Series
    Sales, millions of units


                         PS3, 2.37


                                ...
N64 vs. Wii
    Game sales in millions of units



           Mario Party

    Super Smash Bros.
                        ...
Projected PS3 Sales
    Wii’s 182% of 5th generation console game sales projected to PS3


        Raymond


Crash Bandico...
Projected PS3 vs. Wii for Classic Games

4


3
                                Wii
                                Project...
All-in-one Entertainment Package
    Video game console

    Blu-ray player

    Netflix

    Hulu

    Enhance Intern...
PS3: Working Towards a Greener
              Tomorrow
  Reducing chipset by 20% from

  90nm to 65nm
 Results will cut e...
Marketing Strategy
        Then Focus on Western USA
         1st, focus on Japan andEurope
                              ...
5 Year Plan
              2009          2010           2011        2012           2013

                                  ...
Mission Statement


   Improving families’ home entertainment
        experience by providing a cost-
effective, environme...
Reasoning
    Current economy

    ◦ Movie watching coming home
    ◦ Refocus on family time
      Center around PS3
   ...
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Consulting Presentation to Sony for PS3

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Presentation to Sony PS3 executives highlighting a multi-faceted approach for revitalizing the Playstation 3 console.

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Consulting Presentation to Sony for PS3

  1. 1. Cacchiotti Consulting Group Bogdan, Lauren, Alicia, Jeffrey, Cassandra, Curtis March 13th, 2009
  2. 2. Strengths  Power • The Cell Processor versus the Xenos Processor  Unique Technology • Backwards Compatability • PSP Connectivity • High Definiton Optical Disc Format • Blu-ray player • Wi-fi and built-in internet  Brand Loyalty • PS2 sales surpass XBOX sales
  3. 3. Weaknesses High price relative to other gaming systems   Playstation Network still playing catch-up with Xbox Live  Lack of 3rd party exclusive games  Ahead of its time Playstation 3 Wii System $399.99 $249.99 Games $59.99 $39.99-49.99 Controllers $54.99 $39.99 Source: iSupply
  4. 4. Opportunities International World Market Online Service •Worldwide Sales figures •Play your own Music •Canada: 520,000 •Download few things •Japan: 2,664,366 at once •United Kingdom: 1.9 million •Video chat •United States: 5.7 million •Launch a game Netflix Increase Language • Increasing number of Support people staying home • About 16 languages • Success of Netflix • Arabic • Success of Xbox live with Netflix
  5. 5. Production Cost Production Cost $448.73 $158 -$48.74 +$91.99 Sale Price Sale Price $399.99 $249.99 Source: iSupply, Manufacturers
  6. 6. Console Usage < 18 Year Olds Wii [58.3%] XBOX 360 [42.2%] PS3 [31.2%] Source: http://www.hardcoreware.net/
  7. 7. Lowering MSRP Older game systems very Back to basics Take out blu-ray player successful
  8. 8. Increase Game Developers  Problem: games made for XBOX, not PS3 • time release • programming/ development challenges  Solution • utilize hardware capability • reduce development obstacles • decrease cost of developing for Sony (lower cost of entry) • re-release of PS3
  9. 9. Recommended Strategy Family-centered games   Increased functionality  International marketing
  10. 10. Grand Turismo Series Sales, millions of units  PS3, 2.37 PS One, 10.85 PS2, 9.53 PS One, 9.37 Source: Sony
  11. 11. N64 vs. Wii Game sales in millions of units  Mario Party Super Smash Bros. Wii Zelda N64 Mario Kart 0 5 10 15 Source: Sony, Nintendo
  12. 12. Projected PS3 Sales Wii’s 182% of 5th generation console game sales projected to PS3 Raymond Crash Bandicoot 3 Projected PS3 PS One Crash Bandicoot Final Fantasy 7 Sales of games, millions of units 0 5 10 15 20 Source: Sony
  13. 13. Projected PS3 vs. Wii for Classic Games 4 3 Wii Projected PS3 2 1 Sales of 0 5 10 15 20 games, millions of units Source: Sony, Nintendo
  14. 14. All-in-one Entertainment Package Video game console  Blu-ray player  Netflix  Hulu  Enhance Internet capability  http://www.pcworld.com/
  15. 15. PS3: Working Towards a Greener Tomorrow Reducing chipset by 20% from  90nm to 65nm  Results will cut energy use from 200 watts to 135 watts  New aluminum cooling plates further reduce to 120 watts  Has the potential of using less energy by people taking advantage of there standby sensor that shuts down the console when inactive Source: Sony
  16. 16. Marketing Strategy Then Focus on Western USA 1st, focus on Japan andEurope USA: High consumption rate Japan: Huge market for of DVR, Video Games, Netflix electronics and video games Home Entertainment System Will make PS3 Appealing in many wealthy countries
  17. 17. 5 Year Plan 2009 2010 2011 2012 2013 Diversify Game Offerings Games Increase Backwards Compatibility Media- Add Hulu, Netflix Support Center Focus on Japan, US Focus on W. Europe Marketing UK Olympics 2012
  18. 18. Mission Statement Improving families’ home entertainment experience by providing a cost- effective, environmentally friendly, and all-in- one solution
  19. 19. Reasoning Current economy  ◦ Movie watching coming home ◦ Refocus on family time  Center around PS3 ◦ Broad HDTV adoption  Consumers ready to embrace HD  Only console with Blu-ray, 1080P ◦ All without decreasing revenues

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