Pranav sabhaney s&i_ra


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Strategy and Innovation for Sony PlayStation Portable. A Case For Change.

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Pranav sabhaney s&i_ra

  1. 1. SONY PLAYSTATIONPORTABLEPranav SabhaneyMA - Digital Media Management
  2. 2. SONY PSPThe ProductMarket & Other PlayersThe PSP lets you access games, videos, music and photos at anytime and lets you share them with yourfriends.The offering is great value gaming while on the go.The PSP is the only handheld video-game console to use an optical disc format – UNIVERSAL MEDIA DISC asits primary storage medium.Other interesting features are its large viewing screen, infinite multi-media capabilities and connectivity with thePlaystation2, Playstation3, other PSP’s and the Internet.Sony’s PSP is in the portable gaming/handheld gaming console market space.These are consoles smaller than video game consoles and contain the console, screen, storage, buttons andspeakers in one unit allowing people to carry it anywhere, anyplace.There are quite a few players in this market and of the many the most notable one is the Nintendo DSSonys biggest competition is likely to come from Nintendos newest portable system, the Nintendo DS.TheDS features two screens, one of which is a touch-sensitive pad like youd find on a laptop.The screens can alsobe used for innovative game design, showing different information on each of the screens.
  3. 3. HARMFUL BELIEFSSony PSPThey firmly believed that they were in the industry of Portable Gaming/Handheld Gaming ConsolesThey had a strong belief that Nintendo was their biggest competitionLoyal PlayStation users and Gamers On-The-Move were believed to be their customersThe value they thought they provided was a high quality gaming experience while traveling
  4. 4. CASE FOR CHANGEDecline in RevenueIt has been a tumultuous life cycle for the PSP.  It started off being lauded as the ‘future of handhelds’ and asure-fire successor to the throne that had been occupied by Nintendo pretty much since the beginning of timewhen they released the Gameboy.Sonys PSP has been suffering declining hardware and software sales of its own. From 2005 through 2008, thehandheld has achieved sales of nearly a million units in the U.S. in the final month of the year. Yet in December 2009Sony sold just over 650,000 of the handheld.
  5. 5. CASE FOR CHANGEDisruptorsDigital content distribution has disrupted several notable industries.With the original iPod and the iTunesstore,Apple changed the face of the music industry. Likewise, digital content distribution has starkly disruptednews, magazines, books, shows, films and more.Recently the portable gaming industry has taken the biggest hit. Leading the disruption are iOS and Androiddevices, with its free and inexpensive games accompanied by mobile and tablets form factors and havealready disrupted billions of dollars of game revenue.Portable gaming primarily has been dominated by Nintendo with the DS and Sony with the PlayStation Portable(PSP)In this model, at retail, consumers pay around $200 for the gaming device and up to $40 for popular gamecartridges.Apparently, Christmas morningwent like this for a ridiculousnumber of people.Wake up, go totree. Unwrap smartphone. Giverequisite thanks. Immediatelydownload Angry Birds.Thatapproximate scenario, according toRovio happened 8 milliontimes.
  6. 6. DISRUPTIONMOBILE GAMINGsmartphonetabletsdownloadstoresThe most striking trend is that iOS and Android games have tripled theirmarket share from roughly 20% in 2009 to nearly 60% in just two years. Simultaneously, Nintendo, the once dominant player, has been crushed down toowning about one-third of market in 2011, from having controlled more thantwo-thirds in 2009.The freemium game model is revolutionizing and expanding revenue onmobile devices.And just as smartphone game revenue has climbedaggressively, Nintendo DS and Sony PSP revenue has droppedprecipitously.Smartphones are now capable of delivering a good quality gaming experienceespecially at the casual end of the market.This pushes dedicated consoles into aneven smaller niche.The new trend - Low Quality over High Quality which translates intoAccessibilty
  7. 7. WASTE &VALUE GAPSWhat are valuegaps?Things customers don’t wantThings not doneThings done badlyThings done expensivelyThings done inefficientlyThings done disconnectedlyWaste ofTime & EnergyEnvironmental WasteHuman Waste – Fears, Doubts and UncertaintiesI don’tneed a PSP. MyiPhone does thesame andmore.Karan Reddy, 22I lovegaming in myfree time butthe PSP is awaste of mymoney.Gustavo Bechtold, 28It takes upso much spacein my bag. I’vehardly beenusing it.WastageBased on some ethnographic research and a brief customer activity cycle, it was noted that the PSP despiteoffering services such as WiFi, Internet,Audio andVideo, the customers preferred to buy alternatives like theiPhone because the mobile enables them to do multiple tasks efficiently.The PSP was looked down upon because of reasons such as waste of money, waste of space, fear of it notbeing durable and the fact that the UMD’s were expensive as well.The users did not look at the PSP for multipurpose usage.Mayanka Somiah, 24
  8. 8. CURRENT SITUATIONSony PSP as a Track 1 companyPRODUCT FOCUSEDThe sale is the end transaction where value is providedInnovation is based on incremental improvements in product and service - From PSP to PSPGo to PSPVITACURRENT JOURNEYuserretail store/internetretail store/internetto buy console to buy gamePlayStationNetworkto play against friends
  9. 9. OPPORTUNITYCurrent MarketSpacePortable gaming and Handheld consolesFuture MarketSpaceControl over home environment while on-the-goConvenientHome Solutionsuniversalremotehomesecurity“From a PRODUCT oriented market space to aCUSTOMER focused market space”TO
  10. 10. CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GOUniversal RemoteThe PlayStation Portable currently offers a vast array of features such as WiFi,Audio andVideo, Connectivity tothe PS2 and PS3 and connectivity to the television or computer as well.There are various usages but is pre-dominantly used for gaming.A household insight is that people do not like too many remote controls because more oftenthan not they get lost or spoilt.The solution is for Sony with it’s PSP to become a UNIVERSAL REMOTE that could control every householdproduct/service like the Fridge,Television,AirTemperature Control, Microwave, Electricity,Water.This solution dismisses the problem of having too many devices for multiple purposes.This also solves theproblem of space and money.The user can now access everything he/she owns with the touch of a button.Solution 1
  11. 11. CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GOHome SecuritySony has a wide range of electronic products which belong to both sides of the money chain. People get attachedto things that they own or are close to them and hence take care of those thing more.It is a normal human behavior to be secure of the things they own and hence have a peace of mind and be ableto carry on each day almost hassle free. Sounds like a dream but currently is not at its best.Voila!The solution - SONY PSP is a device that is portable and can be used/accessed while on-the-move.Sony would tie up with a home security system and get access to the technology they provide.The PSP will thenbe the platform the user uses to keep a check on his/her home. Even when they are on-the-move and away fromhome, they have complete control.It works as a simple notification system. If the house is being robbed, then the user will be immediately notifiedand then in turn can alert the police.This smart system will be useful to the user because they can activate/deactivate anything they want in the house as well as notify authorities as soon as possible.This doesn’t allowdelay and hence in turn protect and safeguards the user’s property.All this can be achieved and still the user canenjoy the PSP and play games.Solution 2
  12. 12. HOW WILLTHIS DRIVE UP REVENUE ?CONTROL OVER HOME ENVIRONMENT WHILE ON-THE-GOsimplicity accessibilitybeyondgaming &youthinternetas purchaseplatformThe user interface ofthis will be so simpleto use and the sheersimplicity will attractconsumers topurchase the productbecause it doesn’trequire them to betech savvy.Carrying on thetradition of the PSPof it being accessibleanywhere, anyplaceand anytime, thesolutions providedwill be easilyaccessible to the userand will have fullcontrol and accessover their home.The PSP wastargeted to a nichesegment (youth).Thesolutions providedhelp enable everykind of individual tohave access and fullownership andcontrol of theirhome.This is asolution whichattracts all agebrackets.The vast growth ofinternet consumptionand purchase ofelectronic goods(viaEcommerce) will bethe vehicle that willhelp in promotionand purchase of thesolutions.
  14. 14. SUMMARY & STRATEGIC RECOMMENDATIONSThe Desired OutcomeMarketSpaceThe NewValue ChainPushing Sony towards providing a breakthrough value in the form of the home security solution and the universalremote. From selling a portable gaming console to providing the best solution of controlling home environment. Frombeing product focussed to being more customer oriented.Initially the PSP was targeted to a small yet niche audience (gaming centric) but now they will attract all kinds ofpeople and maybe explode into the woman market with a product that was initially designed to never attract them.The Home Security solution works like a concierge service as well. So, the relationship with the user is maintainedand doesn’t end with the purchase of the PSP.Opening up doors to a new market space which is waiting to be dominated by Sony.Effective cost solutions by taking out cost spent on controlling gadgets, remotes by providing a multi-purposesolutionCustomer Activity Cycle
  15. 15. PlayStation website: PSP, PlayStation PortableIn-text: ( 2013)Bibliography: 2013. Official PlayStation website: PSP, PlayStation Portable. [online] Available at: [Accessed: 19 Jun 2013] Portable on PSP News: E3 2003: PSP Press Release - GameDailyIn-text: ( 2003)Bibliography: 2003. PlayStation Portable on PSP News: E3 2003: PSP Press Release - GameDaily. [online] Available at: [Accessed: 19 Jun 2013] in PSP software & hardware: Should Sony wo... - PlayStation® Community ForumsIn-text: ( n.d.)Bibliography: n.d.. Decline in PSP software & hardware: Should Sony wo... - PlayStation® Community Forums. [online] Available at: [Accessed: 19 Jun 2013].Gaulian, O.Jeanne D’arc | A Most Agreeable PastimeIn-text: (Gaulian 2011)Bibliography: Gaulian, O. 2011. Jeanne D’arc | A Most Agreeable Pastime. [online] Available at: [Accessed: 19 Jun 2013] it Game Over for Nintendo DS and Sony PSP?In-text: ( 2011)Bibliography: 2011. Is it Game Over for Nintendo DS and Sony PSP?. [online] Available at:[Accessed: 19 Jun 2013].Liu, R.Android, iOS overtake Sony PSP, Nintendo DS in US portable game revenueIn-text: (Liu 2013)Bibliography: Liu, R. 2013. Android, iOS overtake Sony PSP, Nintendo DS in US portable game revenue. [online] Available at: [Accessed: 19 Jun 2013].Thier, D.Angry Birds Racks Up 8 Million Downloads in One DayIn-text: (Thier 2013)Bibliography: Thier, D. 2013. Angry Birds Racks Up 8 Million Downloads in One Day. [online] Available at: [Accessed: 19 Jun 2013].All icons are from - http://thenounproject.comThe new value chain model by Paul McCabe
  16. 16. THANKYOU !@mrcrazyps