Playstation free essay sample

â€Å"Sony Drops Price of Playstation 3† Assignment 2 Week 3: Industry Analysis The article â€Å"Sony Drops Price of Playstation 3† discusses Sony’s Playstation 3 and its strategy with cutting the price of its PlayStation 3 by 25%, from $399. 99 to $299. 99. This is a business decision by Sony with hopes that it will generate increased demand for a videogame console that has undersold compared to Microsoft’s X Box 360 and the Nintendo Wii. As the gaming continues to grows, the Threat of Entries continues to grow. As technology in this industry continues to advance, more competitors want to enter the market, and with online gaming portals now becoming used more often by gamers, the competition from the new gaming experiences continues to grow. With the Playstation 3 now lowering its price, they are trying to compete with x box 360 and the Nintendo Wii. The Bargaining Power of buyers in regards to Sony’s Playstation 3 and in this industry is very high. We will write a custom essay sample on Playstation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As more competitors enter the market with newer games and models, the consumer has to decide between which gaming console they want and weigh benefits each console has to offer them The competitive Rivalry in this industry is very high mostly due to the bargaining power of the bargaining power of the buyers. The rivalry is high because Playstation 3 and x Box 360 and Wii are looking for every competitive advantage they can get because consumers are looking for the best console at the best deal, plus most consumers now stay loyal to one brand of gaming console . As soon as Sony announced its price cut of the Playstation 3, Microsoft announced a price cut with its x Box 360 console. This demonstrates that the competitiveness of this industry, with this particular incident resulting in lowering of prices. When it comes to the Bargaining power of the suppliers, this factor is very low, as there is not a huge impact of this factor unless there is some major component of a gaming console that would be needed to complete production of the product. When it comes to replacing a Playstation 3, the Threat of Substitutes in the gaming industry with the Playstation 3 is increasing and high. Not only does Sony have to compete with console competitors in Microsoft and Nintendo, but now Mobile games are becoming a huge threat to Sony. With more gamers also playing games online, this has also impacted Sony and the Playstation 3. Playing games online can sometimes offer more diversity and comfort. The gaming industry and the airlines industry share similarities and differences, both industries are highly competitive. The bargaining power for suppliers is low, as the airlines are not too profitable in some cases, thus leaving them with fewer options to sell to. The power for suppliers is low for gaming industry as many of these companies can find alternative resources for their products. With the gaming industry, the main options for gaming consoles leave consumers with only a few other choices leaving the bargaining power for buyers low. The same can be said for airlines, as only certain airlines fly to certain locations. The threat of new entrants is high, as when one airline is folding, another one can come into that market. The same can be said with the gaming industry, especially with the increase of mobile and online gaming being a threat to the Playstation 3. The threat of substitutes with airlines is moderate, as the only other option for long distance traveling are car,boat,bus,or train, ad most consumers prefer convenience when it comes to flying long distances, as compared to the gaming industry where the threat of substitutes is high and increasing with mobile games and online games increasing in popularity.