Conclusion

CEO Jack Tretton has been at the very front of sony's playstation brand for quite some time and has continued to exceed expectations. Recently playstaion has found stiff competition against the likes of xbox and wii which have caused some trouble for the still budding ceo but he remains confident ps3 will survive and prosper. playstation's ability to allow users the multi-dimensional cabability of being able to go online with, play video games with, and pretty much do anything else a piece of electronic equipment can do has left users stunned and in awe. This ability to keep striving for excellence and keep improving and being at the front of the technological seige has kept playstation users and creaters alike happy and satisfied. The equipment is high priced but with great cost comes great ability and specialization is what ps3 thrives on and will continue to thrive on with ps4, ps5, ps6, and so on. The future looks bright for a company with a large amount of bright and innovative business leaders.

TECHNOLOGY

Playstation uses a hardware chip called a cell processor chip which is built with a 64 bit IBM processor and eight synergistic processing units. This gives the playstation the ability to blow up competition and give stunning quick and beautiful clarity throughout the playstation experience. The playstation itself is actually a computer. It gives you the ability to go online and pretty much do anything that a computer can do. Therefor it does not use or need any other computers to be effective.

PETER DILL

Peter Dille is Sony Computer Entertainment America's senior vice president, Marketing and Playstation Network, and reports to President and CEO Jack Tretton. Dille is responsible for all facets of the company's marketing efforts in North America, including Playstation brand management, hardware and software marketing, advertising, channel marketing & events, corporate communications and promotions. In addition, Dille oversees the Playstation Network in North America.

Playstation sells many different things ranging from the ps3 itself to blue tooths to headphones and other small accessories. The PSP is also sold which is a portable handheld device that plays games in astounding quality. The games that drive ps3 to be successful is what really keeps Playstation going and cost around 60$ per game.

Application software that is used for the ps3 would be things like the six axis controller and the Playstation store which allows customers to download extras to there playstation.

Sony’s PlayStation has its own network that it uses for its console. This network connects PlayStations to Sony’s PlayStation Network. This network can be used as an online gaming network, the internet, and other features. Users can buy games off of the network and is known to be very user friendly.The PlayStation Network is accessible through the Xross Media Bar (XMB). This interface is basically an expansion off of the same interface used for Sony’s PlayStation Portable. This interface allows multiplayer games to connect to each other online. The interface also allows other features such as communicating by voice or video chat, browsing the web, downloading games, and more.Sony uses different types of network communications media. Its controllers connect wirelessly to the system using infrared technology. The system itself can connect to the PlayStation Network by using either a wireless connection like Wi-Fi or a wired connection by an Ethernet cord. The actual user of the PlayStation needs to have some type of Internet connection. Optical fiber and coaxial cable connections are two of the more popular ways people connect to the Internet. Being connected to the internet comes back as the way that Sony PlayStation’s Network gets connected to its users’ gaming systems.

The communication software or the operating system software is a system that controls your application software and manages how your hardware works together. The Sony PS3 can be attached to TV or computer to play games. Sony PS3 is the hardware and software which is compatible to be used with any television (high definition, Plasma, LCD or regular TV) and any computer using Microsoft Windows, Mac or Linux operating system.Sony PS3 can be connected directly to the computer and a person can play games directly on computer, but the drawback is you cannot access the internet on the computer. The Sony PSP can work with any router which could be connected to the modem and Sony PS3, making it easier for a person to access the internet. PS3 can also be connected to a Keyboard and mouse to control the console by using the USB ports on the back of the console. As mentioned earlier, Sony PS3 can be connected with the internet through a router using the universal serial business port at the back of the console. They use the infrared and Bluetooth technology for sending radio waves over distance of up to 30 feet.

PS3 does not have a modem, which means that it not capable for Voice over IP, that allows people to send voice communication over the internet and avoid the toll charges that you would normally received from a long-distance carrier. In order for player to connect to the internet they need to use a DSL modem or cable depending on the customer’s connection. In addition to this, the PS3 can be connected through a router or a wireless connection as well.SCEA is aware of the security that they have to give to their customers, in order for them to be satisfied and secure. The first principle of network security that they offer to their customers is confidentiality which means that all the information provided by the customer can only be obtained by authorized personal. This means that all the information that customers enter when they register to go online is only accessible for authorized workers only. The second principle of network security is authenticity of the information that SCEA provides to its customers. Customers can feel comfortable that the information they are reading is reliable. In addition to this, a company has to have integrity which means that the information that they provide to their customers does not have to be altered in any sense. SCEA covers these two principles in their website where they provide updated information to its customers on a daily basis. The last principle is availability which means that the service is available when it’s supposed to be available. SCEA is available for its customers 24/7, by phone or via internet. SCEA’s domain name is http://scea.com/

Tech Article: Sony in PS3 movie streaming deal with Netflix

The new partnership between Sony and Netflix would give its customers the ability to stream movies at no extra cost. Jack Tretton, the chief executive of Sony Computer Entertainment America states that PS3 is more than gaming device. Some of the advantages of using PS3 to stream movies from Netflix are that it’s going to be free unlike Xbox that charges fifty dollars a year. In addition to this, the entire catalog of Netflix would be available for customers using their PS3 to stream movies. This application would be available on November. Users would use a blu-ray disc in order to access Netflix and an updated would be available later on. PS3 has become the most selling gaming console in United States according to the industry tracker NPD, one of the reasons behind that success is the recent price cut that SCEA applied to PS3.

PS3 Business Article Summary

Andy House at gamescom trade show in Germany was introducing the new slim ps3 which is going to be $100 Cheaper. Right now with this cheaper price playstation is loosing money with each console they sell, which obviously is no good. At the trade show House also spoke about improvements to playstation network the online gaming portion of the console and a new video delivery service as well. Right now sales should be increasing for the 3 main console providers out there but instead each company is having to watch there pockets. A 45 nm processor has been used to lower overall costs for ps3 and microsoft xbox. This processor uses 11% less power and is cheaper to manufacture. This is how ps3 and xbox is able to lower there price. Ps3 is thinking about being the first to let out a next gen console which would be playstation 4. By doing this they think they might be able to jump back to number one in the gaming entertainment environment. The playstation slim will increase sales though and should help sony. Business Article Link

Business Strategy

The business strategy used for our company, Sony and its PlayStation, is differentiation. PlayStation differentiates its product in many ways. First it is the only gaming console to adapt to blu-ray technology, something that no other gaming console can say. Its sleek style and looks make it the most visually stunning system to date as well as the graphics are better than any other system. Its ability to reach the entire world and provide so many different uses in such a convenient and easy way is head over heels better than any other gaming console in the world.

5 Forces Model

Buyer Power for the consumers in the video game market is fairly low. Since only a few companies make video games and game systems there aren’t many choices to choose from. Consumers just have to pay the given price and don’t have any say if it’s too high. Supplier Power is the opposite of buyer power which makes the supplier power of the industry on the high side. Sony and its PlayStation have this power because there are not a lot of alternatives to choose from in the industry. They can set a price for their product and people will just have to pay if they want a PlayStation. The threat of substitute products for the PlayStation is quite low because there are only three main gaming systems on the market right now. There is also a switching cost in getting a new system because the games you purchase only work for one particular system. Also, the controllers and other accessories you invest in buying only work for that particular system. The threat of new entrants for the video game industry is quite low. It usually takes a large company and good financing to be successful which can be an entry barrier. If a small company attempted to get into the industry it would just get pushed aside by the three large companies currently in the market. Another setback is that it is difficult to get software designers and third party companies to make the software for the games themselves. Most game designers won’t work with a certain system if they don’t feel that their game will sell for that system. There is a strong rivalry among Sony’s PlayStation, Nintendo’s Wii, and Microsoft’s Xbox. These three companies have to make their products stand out over its competition. All three have been in the industry for a good amount of time and show no signs of leaving. Price cuts are one way these companies are currently trying to reach out to more consumers. Each system has their own product differentiation to make their system stand out.

Initiatives and Philosophy

(CEO Jack Tretton)

The four different business initiatives are Supply Chain Management, Customer Relationship Management, E-Collaboration, and Enterprise Resource Planning. Sony Play Station uses a mix of E–Collaboration and Enterprise Resource Planning system. The company uses technology to support work activities with integrated collaboration environments with virtual teams who are located all over the world. It uses a system with a collection of software for business management, accounting, finance, human resources management, project management, inventory management, service and maintenance, transportation, e business and also Supply Chain Management and Customer Relationship Management all together. Sony Play Station uses top line initiatives because their strategy is to increase revenues, and different ways to increase revenues used by them are reaching out new customers, offering new products, cross selling related products like accessories and offering complementary products. At the same time it the use some bottom line initiatives to keep the expenses at a minimum. Sony is considered to be one of the top leading manufacturers of audio-visual electronics and information technology products worldwide. Such success can be link with the type of IT organization and philosophical approach that Sony uses. The philosophical approach that is used by Sony is decentralized, also known as the early IT adopter’s philosophical approach. This approach has been used since the foundation of this corporation in the earlier 1940’s. Adopting this approach can be risky but it can also provide significant competitive advantage and a higher return if it proves to be successful. This fact can be proven by the success of PSP 3, which use advance technology like a High-Performance Processor and a Semiconductor Laser that gives them the advantage among their competitors and the preference of their customers. This success is achieved by the fully integrated approach within SCEA. This means that even if every function has its own department. The IT personal is placed within the other functional units. The approach gives the corporation a tremendous empowerment.

Other Strategies

(new design after price cut - image)

PlayStation uses e-commerce is a number of different ways. You can buy the PS3 console online at a number of different retailers including Amazon, PlayStation.com as well as number of different retailers like Best Buy etc. Another way that PlayStation uses e-commerce is through what’s called the PlayStation store. This store that is accessed through the bar when you turn your PlayStation on it sells a number of different items that correspond to PlayStation as well as other things. At this store you can download free demos of games coming out, you can buy old PlayStation 1 and 2 games and download and play them on your ps3, you can buy add-on's for games that you currently have and you can also rent movies and buy movies to download to your ps3 as well. So as you can see PlayStation does a lot to have e-commerce integrated into its lineup. For the most part Sony uses the B2B and B2C models. When Sony sells its games, systems, and accessories to retail stores this is selling to another business or company. Then from these other stores and businesses the consumers buy their products. Sony also sells its products directly to its consumers which would be B2C. Another way Sony products are sold are from people buying and selling products on eBay. This method does not involve Sony so it would be an example for C2C e-commerce. Sony registers with search engines to try to direct traffic to its website. When you do a Google search for "Sony" its homepage comes up as the second link. Anyone that searches the company will see it in the first few Google results. I have also seen online ads for Sony's video games when I have been on video game related websites. When Sony releases newer games or games that are expected to sell more you may see advertisements on other websites that are not video game related. Sony also has TV commercials for the Play Station and its games. Viral marketing is another way the word is spread about the PlayStation because its users always talk about it. The best thing about viral marketing is that it is free for the company because the consumers do the work. Sony does not really use the payments methods in the B2C e-commerce model. Depending on where the consumer orders its Sony products from, a financial cybermediary may be needed. For the most part Sony sells its gaming products through other electronic retail stores. The most common way games are sold using e-commerce is by online shopping from retail stores. Some of these stores have their own payment system, but others may need the financial cybermediary. PayPal is the best known financial cybermediary and is very user friendly.

Sony Play Station

Sony Play Station

Ethics - Sony is a company that produces all kind of electronic accessories and devices. In July of 2001, Sony started the Compliance Office, in charge of exercising overall control over compliance activities across the Sony Group. This group was responsible to emphasize the importance of business ethics with applicable laws, regulations, and internal policies. Throughout 2007, the Sony Group received close to 340 hotline calls covering issues relating to employment, labor, work environment, information management, environmental protection and possible conflicts of interest and thefts. All contacts received are investigated for the purpose of verification and appropriate action. This hotline service increases the security and safety of the company and its workers. Sony also has other education and training sessions. The training sessions use e-learning, case studies, and other approaches of presenting real-life examples of problems. They also provide instruction both on business ethics generally and on individual aspects of the Sony Group Code of Conduct that are crucial to some or all of the Sony Group.

Playstation is one of the premier gaming consoles in all of the world. It has spread like wildfire through the world and has no plan of stopping anytime soon. It functions as a number of different devices and that makes it one of the most diverse and multi faceted entertainment electronic software consoles ever created. Not only does it provide an extremely high level of gaming but it also functions as a cd player dvd and blu-ray player as well as a source of online internet connection and web surfing. It is also one of the only systems that has a hard drive and multiple hard drive sizes to pick from.

In 1995 Playstation launched and became the highest selling gaming console in history and sold a record amount of copies. By 1996 playstation had exceeded 1 billion dollars in sales. By 1997 the product had soared to new heights shipping out over 20 million consoles. In the year 2000 Playstation 2 launched as the most diverse system to date bringing together gaming as well as dvd and cd compatability. It also allowed people that still had Playstaion one games to still play them on there new system. In 2002 playstation created there network adaptor which allowed up to 16 people to play games together across the world online together. In 2006 playstation released the 3^rd installment of the series, the system had the most advanced cell broadband engine processer ever created for a gaming system. It also allowed blu ray movies to be played on.

Jack Tretton is the President and CEO of Sony Computer Entertainment of America and is the head of all things Playstation. He graduated from Providence College with a marketing degree and sought to do big things. Although many people work more closely with Playstation the final decisions come to the head cheese. In 1995 Tretton became a key part of developing Sony Playstation and by 2006 he was promoted to president of SCEA. Tretton is responsible for the day-to-day management of the company's operations, including licensing, third party relations, business development, strategic planning, first party product development, marketing, sales, finance, human resources and the online network business group.