Sony PlayStation 4 is a video game console that has been created by Sony Interactive Entertainment. The eighth generation of this category the Playstation has found a place in the customer’s mind and competes with X box and Nintendo Switch. The console which is the top seller in its category has a storage capacity of 1 TB or 500 GB. As of Dec 2017, Sony has sold 74 million units of PlayStation 4.
With the PlayStation camera, HDMI display, semi-custom AMD GCN Radeon visual graphics the console uses the PlayStation 4 system software operating system. PlayStation 4 is also cloud-based and can be accessed using cloud-based platforms. The PlayStation has been a revolutionary move in the history of gaming and the success saga continues with Playstation4.
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Strengths in The SWOT analysis of Sony PlayStation
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of PlayStation 4:
- Support of Sony: Sony is a well-known brand in consumer electronics with a wide gamut of products in its portfolios such as consumer electronics, gaming, and entertainment. The company has a history of operations for more than 7 decades and is one of the market leaders in electronics. The backing from Sony has made PlayStation what it is today.
- List of exclusive games: The top-selling games on the market are available exclusively on PS 4 and this makes it lucrative to the customer. Some of the games like God of wars and Uncharted are so popular that professional gamers, as well as novices, get Playstation just so that they can play these games.
- Tie-ups with game developers: PlayStation is the market leader in gaming consoles and there has been a lot of issues with Nintendo switch with the result that many game developers have developed games using PlayStation 4. They also use Playstation 4 for testing their games
- Unique gaming experience: Users of Playstation vouch for the unique gaming experience that it provides. The dual shock controllers increase the impact of the shock and give the player a feeling of excitement. Just like the Kinect in X box, PlayStation has the Move technology which helps the user to play remotely. The gaming console also has a 4 K resolution something which no other gaming console has been able to get so far.
- Nintendo Console failure: The top-selling product of Nintendo is their Wii gaming console. The gaming console faced a massive product failure owing to which many loyal customers of Nintendo moved to Sony. This has resulted in an increase in the sale of Playstation4.
Weaknesses in The SWOT analysis of Sony PlayStation
Weaknesses are used to refer to areas where the business or the brand needs improvement. Some of the key weaknesses of PlayStation are:
- Pricing: Sony has priced PS 4 much lower than its variable cost primarily because the launch was timed along with the launch of Xbox. However, it makes its revenue from game licensing and add-ons which are not part of the price. The user also can pay quarterly or monthly for the usage of the gaming services.This is proving to e a challenge to manage in the long run.
- Regular upgrades: Most gaming consoles from a hardware perspective are closed systems which result in the need for regular and frequent upgrades. When a new version of the console is launched the games are also developed for the latest version with result that the predecessor almost becomes obsolete.This is proving to be extremely expensive for the customer who is switching to cheaper options.
- High cost of promotions: Entertainment is a highly dynamic area and also a competitive one. In order to lure the customer companies spend lavishly on product launches and promotions. However, they are not able to convert it to sales because of the poor margins and the low volumes of sales.This will affect the bottom line in the long run.
Opportunities in The SWOT analysis of Sony PlayStation
Opportunities refer to those avenues in the environment that surrounds the business on which it can capitalize to increase its returns. Some of the opportunities include:
- New segments: There is a lot of scope for the growth of new segments in gaming. Smartphones, virtual reality, artificial intelligence, machine learning, and robotics will all create new and increased scope for games as well as an increased demand for related hardware.
- Improvements in technology: Introduction of smartphones, better internet speeds and availability of cheap bandwidth even in remote locations are all going to increase the market for games most of which are going to be accessed through gadgets.
Threats in The SWOT analysis of Sony PlayStation
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- Competition: The main competitors of PlayStation are Nintendo and X box.
- Threat from mobile games: Mobile games are fast growing and these have created a strong threat to gaming consoles. These are cheaper and simpler to access with the result that gamers choose these over gaming devices.
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