Cacchiotti Consulting GroupBogdan, Lauren, Alicia, Jeffrey, Cassandra, Curtis

March 13th, 2009

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Power• The Cell Processor versus the

Xenos Processor Unique Technology• Backwards Compatability• PSP Connectivity• High Definiton Optical Disc

Format • Blu-ray player• Wi-fi and built-in internet

Brand Loyalty• PS2 sales surpass XBOX sales

Strengths

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WeaknessesHigh price relative to other gaming systemsPlaystation Network still playing catch-up with

Xbox LiveLack of 3rd party exclusive gamesAhead of its time

Playstation 3 Wii

System $399.99 $249.99

Games $59.99 $39.99-49.99

Controllers $54.99 $39.99

Source: iSupply

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Opportunities

Netflix• Increasing number of people staying home • Success of Netflix• Success of Xbox live with Netflix

Increase Language Support

• About 16 languages• Arabic

International World Market•Worldwide Sales figures•Canada: 520,000•Japan: 2,664,366•United Kingdom: 1.9 million•United States: 5.7 million

Online Service•Play your own Music•Download few things at once•Video chat•Launch a game

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Production Cost$448.73

Production Cost$158

Sale Price$399.99

Sale Price$249.99

+$91.99-$48.74

Source: iSupply, Manufacturers

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Wii [58.3%]XBOX 360 [42.2%]PS3 [31.2%]

Console Usage < 18 Year Olds

Source: http://www.hardcoreware.net/

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Lowering MSRP

Take out blu-ray playerOlder game systems very

successfulBack to basics

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Problem: games made for XBOX, not PS3• time release• programming/

development challenges Solution• utilize hardware capability• reduce development

obstacles• decrease cost of

developing for Sony (lower cost of entry)

• re-release of PS3

Increase Game Developers

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Recommended Strategy

Family-centered gamesIncreased functionalityInternational marketing

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Grand Turismo SeriesSales, millions of units

PS One; 10.85

PS One; 9.37

PS2; 9.53

PS3; 2.37

Source: Sony

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N64 vs. WiiGame sales in millions of units

Mario Kart

Zelda

Super Smash Bros.

Mario Party

0 2 4 6 8 10 12 14

WiiN64

Source: Sony, Nintendo

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Projected PS3 Sales

Final Fantasy 7

Crash Bandicoot

Crash Bandicoot 3

Raymond

0 2 4 6 8 10 12 14 16 18

Projected PS3PS One

Wii’s 182% of 5th generation console game sales projected to PS3

Sales of games, millions of units

Source: Sony

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Projected PS3 vs. Wii for Classic Games

1

2

3

4

0 2 4 6 8 10 12 14 16 18

WiiProjected PS3

Sales of games, millions of units

Source: Sony, Nintendo

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All-in-one Entertainment Package

Video game consoleBlu-ray playerNetflixHuluEnhance Internet capability

http://www.pcworld.com/

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PS3: Working Towards a Greener Tomorrow

Reducing chipset by 20% from 90nm to 65nm

Results will cut energy use from 200 watts to 135 watts

New aluminum cooling plates further reduce to 120 watts

Has the potential of using less energy by people taking advantage of there standby sensor that shuts down the console when inactive

Source: Sony

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Marketing Strategy

Home Entertainment System Will make PS3 Appealing in

many wealthy countries

Then Focus on Western Europe1st, focus on Japan and USAUSA: High consumption rate of DVR, Video Games, Netflix

Japan: Huge market for electronics and video games

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5 Year Plan2009 2010 2011 2012 2013

Games

Media- Center

Marketing

Diversify Game Offerings

Increase Backwards Compatibility

Add Hulu, Netflix Support

Focus on Japan, US

Focus on W. Europe

UK Olympics 2012

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“

Mission Statement

Improving families’ home entertainment experience by providing a cost-effective,

environmentally friendly, and all-in-one solution

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ReasoningCurrent economy

◦Movie watching coming home◦Refocus on family time

Center around PS3◦Broad HDTV adoption

Consumers ready to embrace HD Only console with Blu-ray, 1080P

◦All without decreasing revenues