Around the globe, there is advancement in technology which results in an introduction to product development resulting in new devices. There are many products which brand introduce to compete with the market; these are for customer satisfaction and increasing interest of the consumers. This report will be focusing on one of the latest released products by SONY that is PS5 or commonly known as PlayStation 5. The product is having some additional features comparing it with the previous version, which has mostly attracted people having an interest in gaming. This report will critically examine all the aspects of SONY releasing their product in the market from a strategic point of view. Moreover, it will be understood how a business works on bringing its product into the market with minimum efforts. The marketing objectives and criteria of the business will be understood by providing recommendations for the future of the industry.
Introduced by Sony PlayStation 5 is a video game console which was announced in 2019 in the place of PS4 to be its successor. Officially it was released on Nov 12th, 2020 in countries like Japan, North America, South Korea, New Zealand, and Australia. There are different variants in which the product was released having digital downloadable games. There are some of the exceptional features in this machine which include 4K resolution, fast speed, and AMD GPU capable setup, all of which were lacking in the previous versions these are the key success factors of the business penetrating the market. Most of their target is the young people who are attracted to gaming which becomes a positive motivation for them to sell. If we compare the previous version of this product with this PS5, it can be seen that it is compatible with many new games and even have the option of 3D audio effects. On the whole, it can be seen that even if the prospects are viable for a gamer, still it can be seen that PS5 is one of the classical products which is introduced by Sony to revolutionize the gaming industry and provide perfection to the gamers. As the product was launched, it has sold up to 1 million units which is quite an impressive number of sales for a product found in the start.
PS5 launched at such a best timing like there was no competency. It got revealed on Nov 12th, during COVID-19 19 when most of the people are home, and online; which caught peoples’ eyes as in YouTube, it was the most-seen gaming stream ever which made Microsoft’s time difficult. Sony is so forward in the market that its market share is more than 50%. Microsoft if does not delivers any product in a similar quality or at least half of its best quality then it will be a challenging game. Marketing segmentation of PlayStation is not limited to gamers but people of different ages. Mostly they are capturing the North American market after that Japanese and European market is on their list. Currently, for streaming purposes, many YouTubers are also using PS5 which is their marketing segmentation giving entertainment to people.
There were two announcements made by the PS5 which led to speculations and rumors. This contributed to the “word of mouth” marketing by the PS5, which contributed to its tremendous success at the launch of the product. The second strength that contributed to PS5 success was the timing. According to reports, the Xbox was criticized for having limited options, and it had a higher price, and the announcement confirmed it. PS5 won over by announcing right next day the better features it had including the Free GTA 5, Black Spider. The product’s quality was better and having no restrictions on playing games, and a very clear price contributed to its success, which by many experts is said to be genius. The surprise element also contributed towards success and gave the PS5 an upper hand.
The hype in social media was also a weakness. The speculations led to the rumors of PS5 not being able to compete, which led to negative word of mouth as well, which contributed to the negative comments. One of the significant issues that this strategy had was the surprise element. Even though it donated to the positive Goodwill, it never promised that this positive news would travel to every current and past customer of the PS5.
PS5 made its launch successful by using the “surprise element”. However, Xbox came back with a better offering, and this time it differentiated on the cost which about $100 less than the PS5.the launch of this new product put PS5 behind in sales. The launch issues, including the slow working, not having full access are shattering the image that was created by the perfect marketing strategy. The decline in sales thanks to the global pandemic rise in some countries, especially in China. The plans that were made of promotion of post-launch were not executed because of COVID-19; hence the strategy that was appreciated by not only the public but experts as well is going downwards. CFO stated at one point that judging the PS5 approach before its launch would not be right. The launch was successful, but the pandemic created a massive miscommunication between the retailers, distributors, and customers. Apart from this, the extreme competition from two products launch from the Xbox is the main issue for PS5.
Into the concluding remarks it can be seen that PS5 has worked hard on marketing their new product which comes after a long time and they work on to make the thing better than the previous version; however, there were some unforeseen circumstances such as a person in India taking the trademark of PS5 in India which they should have been checking and forecasted previously. In addition to that, they should also be focusing on coming up with options to explore their marketing strategy in the current pandemic situation, which can help in progressing their business. Their products could have been much better if the situation of a pandemic shouldn’t be the case.