ENGINEERING MANAGEMENT REPORT

PLAYSTATION STUDIOS

RUCHITH RAMESH

4NI20CS080

CSE-B
Table of Contents:

Topic Page no.

Introduction 3

Some Statistics 4

The rise of the 5

company

Products developed 6

Services and 7
Products

Competitors 8

Sales 9

SWOT Analysis 10

Marketing Strategies 12

Conclusion 14
INTRODUCTION:

Recognized as a global leader in interactive and digital entertainment, Sony Interactive

Entertainment (SIE) is responsible for the PlayStation brand and family of products and
services. PlayStation has delivered innovation to the market since the launch of the original
PlayStation in Japan in 1994.
PlayStation Studios (formerly known as SCE Worldwide Studios and SIE Worldwide Studios
until 2020) is a division overseeing game development studios owned and maintained by
Sony Interactive Entertainment. It was founded in 2005.
PlayStation Studios acts as a single entity that oversees the production of first-party video
games developed by SIE's internal development studios and external partners. It also
focuses on software and applications developed for the PlayStation brand of consoles, as
well as individual titles and ports to other consoles and platforms such as personal
computers and mobile.
PlayStation Studios has housed nearly all game development teams within Sony Interactive
Entertainment since its inception, as well as various support teams and technology
developers. Since 2022, it also houses PlayStation Studios Mobile Division, which oversees
game development for mobile titles.
Headquartered in San Mateo, California, SIE is a wholly-owned subsidiary of Sony Group
Corporation and has global functions in California, London, and Tokyo.

PlayStation Studios
Some Statistics:

Formerly SCE Worldwide Studios

(2005-2016)
SIE Worldwide Studios
(2016-2020)
Type Production Company

Parent company Sony Interactive

Entertainment

Foundation Sept 14, 2005

Predecessor 989 Studios

Sony Network
Entertainment
International
Founders Phil Harrison

Headquarters San Mateo, California

Key People Hermen Hulst

Product type Video Games and

consoles

Number of Employees ~4000

(In 2022)

Subsidiaries PlayStation Studios

Mobile Division

Place of origin
Minami-
Aoyama, Minato,
Tokyo, Japan

Introduced
December 3, 1994
The rise of the company:

The launch of the original PlayStation console back in 1994 was actually a massive risk for
Sony, because put simply, Sony back then was a nobody.
In 1994, the entire gaming market was just two companies. Nintendo, who hit a home run
with the creation of Mario and had about 40% market share and Sega, who created Sonic,
their equivalent to Mario, had taken the market by storm to achieve a share of 55%. Both of
these Titans were fighting tooth and nail to try and make their mascot the greatest 2D
platformer of all time.
But Sony realized something that now is the perfect time for a 3D gaming platform.
Comparing the PlayStation to Nintendo or Sega's supposed 3D offerings, the consumers
quickly noticed that Sony is the only one capable of rendering real 3D models with real
reflections on them. Sony also realized that they couldn't just be more powerful. Their
brand also had to be different to set them apart from their competitors. That did that by
swapping the controller letters for shapes. The shapes also have significance, for example,
the blue cross and the red circle on their controllers represent yes and no, which even till
this day is what they're used for in games.
These strategies impressed many consumers and drew so much attention to their product
that their console became an instant hit and their sales skyrocketed. Since then, Sony has
been contstantly working on improving their products with each generation by adding new
features to their consoles and controllers, adding multiplayer support and internet
connectivity and much more.
Products developed:
PlayStation, video game console released in 1994 by Sony Computer Entertainment. The
PlayStation, one of a new generation of 32-bit consoles, signalled Sony’s rise to power in the
video game world. Also known as the PS One, the PlayStation used compact discs (CDs),
heralding the video game industry’s move away from cartridges.

After a failed venture with Nintendo to release the PlayStation as the Super Nintendo
Entertainment System–CD in the early 1990s, Sony made the decision to market its own
console. The PlayStation was released in Japan in December 1994, and it made its American
debut in September 1995; both releases elicited critical acclaim and impressive sales. Titles
such as Twisted Metal and Ridge Racer were very popular. By 2005 the PlayStation had
become the first console ever to ship 100 million units. PlayStation’s premier games
included fan favourites such as Final Fantasy 7, Crash Bandicoot, and Tekken, all of
which spawned numerous sequels.

The original PlayStation continued production until March 2005, when it was eclipsed by the
next generation of 64-bit consoles, including Sony’s own PlayStation 2 (PS2; introduced in
the early 2000s). The PS2 offered an ability to play over the Internet, which, combined with
the most extensive line of games ever marketed for a console, led to its sales dominance
over its 64-bit rivals Sega Dreamcast and Nintendo GameCube. In fact, PlayStation 2 went
on to ship 100 million units faster than any of its predecessors or contemporaries. However,
the next instalment of the PlayStation consoles, the PlayStation 3 (released in 2006 and
2007), did not enjoy the same initial success as the earlier incarnations of the console, with
ongoing competition from the Microsoft Xbox 360 and the Nintendo Wii.

In 2013 Sony released the PlayStation 4 (PS4), a next-generation console designed to

compete with the Xbox One. Critics and players embraced the new platform, which boasted
outstanding graphics and a smooth online multiplayer experience. The PS4 also doubled as a
Blu-ray player and a media streaming device, and Sony’s PlayStation Now subscription
service provided access to hundreds of current and legacy games. Sony entered the
expanding virtual reality (VR) market with the release of the PlayStation VR (PS VR) in
October 2016. The PS VR system included a PS4 as well as a VR headset and controllers. The
PS VR was priced well below similar PC-based VR systems, leading many to assume that it
would make significant inroads into the market, but sluggish sales across the VR industry led
analysts to drastically downgrade their expectations.

Announced in 2019 as the successor to the PlayStation 4, the PS5 was released on
November 12, 2020. The PlayStation 5's main hardware features include a solid-state
drive customized for high-speed data streaming to enable significant improvements in
storage performance, an AMD GPU capable of 4K resolution display at up to 120 frames per
second, hardware-accelerated ray tracing for realistic lighting and reflections, and the
Tempest Engine allowing for hardware-accelerated 3D audio effects. Other features include
a controller with haptic feedback and backward compatibility with the majority of
PlayStation 4 and PlayStation VR games.
Services and Products:

1. Home consoles

 PlayStation
 PlayStation 2
 PlayStation 3
 PlayStation 4
 PlayStation 5

2. Handheld systems

 PlayStation Portable
 PlayStation Vita

3. Online services

 PlayStation 2 online service

 PlayStation Network
 PlayStation Store
 Life with PlayStation
 PlayStation Plus
 PlayStation Blog
 PlayStation App
 PlayStation Mobile
 PlayStation Now

4. Other hardware

 PlayStation TV
 PlayStation VR
 PlayStation Classic
Competitors:

PlayStation has many notable competitors. The ones giving a tough fight are:

 Nintendo

 Sega

 Wii

 Steam

 Ouya

 Oculus

 Liquid

 Yume

 Xbox

Despite having many tough competitors, PlayStation has always reigned over them and has
now established itself as one of the biggest and most successful giants in the video games
marketspace.
Sales:
SWOT Analysis:
Strengths of PlayStation:

Strengths are the positive factors that help PlayStation to hold its position in the
market. Following are some of the Strengths of PlayStation:
 Successful go-to-market strategies – The PlayStation’s end goal is to
enhance the overall customer experience taking into account product quality
and pricing.
 Exclusive list of games – They also boast a list of exclusive games which
were available on the PS only and for this reason platforms automatically
excel because gamers want to experience and play these exclusive games.
 Reliable distribution network – Over the years, PlayStation has built a
reliable distribution network that can reach the majority of its potential market.
 Strong brand portfolio – PlayStation has a strong brand portfolio, in the
simplest of terms, this encompasses all the brands offered by a single firm for
sale to cater to the needs of different groups of people.
 Unique gaming experience – Users of PlayStation vouch for the unique
gaming experience that it provides the dual shock controllers increase the
impact of shock and give the player a feeling of excitement.

Weaknesses of PlayStation:

Weaknesses are the factors that hold the growth of PlayStation. It needs to take care
of these factors and find a solution to them as soon as possible. Following are some
of the Weaknesses of PlayStation:
 Cannot create unified work culture – Unfortunately, they are not highly
successful at creating unified work culture. So specifically, when they bring
smaller firms together, they haven’t really figured out how to merge these
firms in terms of their different work cultures.
 Weak marketing strategies – Although their products do well in terms of
sales, their marketing is actually not that strong with positioning and unique
selling propositions really not clearly defined.
 Workforce high attrition rate – PlayStation has a high attrition rate in their
workforce. A high turnover means a lot of money spent on training and
development.
 Frequent hardware updates – The console has to be upgraded. This doesn’t
please gamers because they constantly have to replace these things.
Opportunities for PlayStation:

Opportunities are the factors that help PlayStation grow in the market. It should find
these opportunities and make them their strengths and grow its business. Following
are some of the Opportunities for PlayStation:
 New trends in consumer behaviour – New trends in consumer behaviour
and buying patterns can expand existing and create new markets for
PlayStations.
 Virtual reality in gaming and social – Virtual reality remains a huge
opportunity doubling of course both now as gaming and a social platform as
well.
 Increasing in developing economies – Gaming is increasing especially in
developing economies and emerging markets
 More people gaming during the pandemic – With the current pandemic
situation, many more people are choosing products such as PlayStation even
though the economy is fragile.
 Online platform expansion – Over the years, the company has invested a
lot of money in its online platforms and this has opened up sales channels for
PlayStation. This has become increasingly important as the pandemic lingers.

Threats for PlayStation:

Threats are the factors that can create trouble in the growth of PlayStation in the
future. It needs to be aware of such events with proper solutions to tackle them.
Following are some of the threats for PlayStation:
 Competitor’s new technologies – PlayStation’s biggest threat remains the
new technologies developed by competitors.
 Maturing markets – The markets are maturing with most players actually
having an Xbox PlayStation or even Nintendo so this is especially true of the
developed markets where disposable income is high.
 PC gaming is still strong – PC gaming is still strong because of the
technology advantage of PC and the lower prices of their games.
 Liability laws – Liability laws in different countries may expose PS to various
liability claims given changes in policies in those different markets.
 Rising cost of raw materials – Higher costs of raw materials can pose threat
to PlayStation’s profitability.
Marketing Campaigns:

PlayStation has a very big fanbase and thus it comes up with new creative and artistic ways
to reach out to them some of which are shown below.
PlayStation:
 "eNoS Lives" (The first letter 'E' was printed in red to denote the word, ready. Enos
stood for Ready, Ninth of September) (US Commercials)
 "U R Not e" (The letter 'E' was printed in red to denote the word, ready, as in You
Are Not Ready)
 "Do Not Underestimate The Power of PlayStation." (From the S.A.P.S. – Society
Against PlayStation — series of adverts)
PlayStation one:
 "Wherever, Whenever, Forever."
PlayStation 2:
 "The Beginning."
 "Live In Your World, Play In Ours."
 "(Welcome to the) Third Place."
 "Fun, Anyone?"
 "The ultimate just got better – PlayStation 9 – teleport yours today."
PlayStation Portable:
 "PSP Hellz Yeah" (PSP-1000 Series)
 "Dude, Get Your Own..." (PSP-2000 Series)
 "Everywhere Just Got Better" (PSP-3000 Series and PSPgo)
 "It's GO Time" (PSPgo)
 "Your Whole World In Your Hands" (UK & Europe Territories)
 "Step Your Game Up" (US Territory, PSP-3000 Series and PSPgo)
PlayStation 3:
 "The Wait Is Over"
 "Welcome Chang3" (the number three is used to denote an 'e' and was printed in
red)
 "This is Living."
 "Play B3yond" (the number three is used to denote an 'e' and was printed in red)
 "It Only Does Everything" (US Commercials) (PS3 Slim)
 "The Game Is Just The Start. Start PS3." (EU countries)
 "Long Live Play" (PS3 Slim)
 "Never Stop Playing" (PS3 Slim)
  "Greatness Awaits" (PS3 SuperSlim)

PlayStation Move:
 "This Changes Everything"
 "Move Into The Action"
PlayStation Network:
 "Download, Play, Connect."
PlayStation Vita:
 "Never Stop Playing."
 "The World is in Play." (EU only)
PlayStation 4:
 "See the Future"
 "Push the boundaries of Play"
 "Greatness Awaits"
 "This is 4 the Players"
 "Where the Greatest Play"
PlayStation 5:
 "Play Has No Limits"
Conclusion:

On the study of the SWOT Analysis of PlayStation, we have known that it is one of the
largest companies in its industry. It has a successful go-to-market strategy and a unique
gaming experience. It can expand its business with the help of new trends in consumer
behaviour and the increase in virtual reality in gaming and social. Even with such positive
factors, it has some flaws in the market.

It lacks in creating a unified work culture and a high attrition rate in the workforce. Other
factors such as the rising cost of raw materials and the liability laws can create a threat for
the company in the future. It can still improve its marketing strategies by focusing more on
advanced digital marketing strategies in the market as most people have shifted towards
online media, thus it is one of the best marketing methods to be used by every company.