It’s no secret that this generation Sony has lost large increments of money upon pushing PlayStation 3 onto the market since 2006. This generation is winding down and chances of coming anywhere remotely close to recuperating a significant percent of their losses with PS3 and PSP are, well, slim. How will Sony fair this time around with the PlayStation 4?
Sony has lost a significant percent of the market since the start of this generation. Granted, they had a rough start, and a strong finish, but an incredible PS4 success next generation may not be enough for them. Here are the major reasons why:
The Hardware Sales
Like all new consoles, the PS4 will already be sold at a loss. And of course this does not mean that Sony will never reach profiting figures through hardware sales. It just may take a while before this happens because of the market now being shared by more worthy competitors this time around. Not that any company solely relies on banking-in on the profit of console sales, though it would be nice, it still would do little to recover from the red zone. With the amount of money lost by the PS3 in mind, they now have to spend all this money putting the PS4 out on the market, thus concluding to negative “more” dollars.
Sony has to form a new strategy to get back to where they once dominated, the software division. Thus far there has been one too many huge multiplatform franchises that sell more on the competitors console. And quite frankly, their own exclusive games are still yet to reach sales that are brag worthy. And then there is the significant lack of third party support (where a lot of the big bucks generate from) that has hurt them this generation. Although I do give them credit for what looks like a promising launch line up, and the fact that hitting the market before the Xbox 720, or before the Wii U picks up pace (IF it picks up pace), may change this problem. Hopefully it was a good strategy to get a good start on consuming 3rd party developers.
with a lackluster marketing strategy this generation Sony still managed to lose a lot of money. If they would have marketed more and a little smarter, which may have sold more consoles, it wouldn’t have made a difference, they would have lost even more money. This is because they launched last this generation, came out at a much higher price point, there was a lot of buzz around the Wii and Xbox 360 had most of the party support. So if you are still wondering why Sony chose to not market the PS3 all that much this generation; you shouldn’t, they knew exactly what they were doing. Now knowing that sometimes marketing may not always be the best solution, we just have to wait and see what Sony does as far as pushing the PS4. The Sony event hitting the news on release of the PS4 may have been a strong enough push for them to spend a little less than usual on a launch marketing campaign. Thus they will benefit a little from it. But will it be enough?
This upcoming generation Sony will have to have spectacular hardware sales. Third party support along with great software sales; launching before Microsoft could gain control of the third party. And a well-executed, well-balanced marketing strategy that benefits them in the long run. I’m talking a perfect generation, borderline miracle, whether you agree or disagree.
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