Console War: Xbox one vs. Playstation 4

Vigneshwar Sankaraan                      #216268276               vsankara@deakin.edu.au

marketing-mix-of-sony-playstation

Sony Playstation (officially shortened to PS)  is a gaming console that was created by Sony computer entertainment in the year 1994. The main rivals of sony in the gaming industry are :-

  • Microsoft
  • Nintendo

Both these rivals provide very stiff competition. However, Sony very effectively used various marketing strategies to dominate the gaming world.

In 2006, when sony initially launched the PS3 , it wasn’t that successful compared to Xbox 360, which was affordable , had better and more game titles.

Learn From the mistakes

From previous generation of console i.e PS3 , Sony learnt from their mistake and used various marketing strategies to make Playstation 4 a grand success. Sony reviewed its previous mistake and did a SWOT analysis. Some of the marketing strategies used by sony were to make the console affordable for the customers so grab a hold of the market, and Playstation design was more attractive and powerful compared to Xbox one. In addition to this, there were many more better feature and exclusive game titles for PS4. All this made PS4 much more successful compared to Xbox one as one can see from the statistics.

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Marketing Mix-

  • Product-

Sony announced detail of release of playstation 4 on February, 2013. Microsoft announced detail of release of Xbox one on May,2013. Both new products although similar in computing power but they both had unique features and benefits.  Xbox One seems to appeal more broad customers with more of entertainment options in console. Whereas, PS4 seem to be more gamer friendly, game-centric and comparatively more powerful but it also included entertainment options such as viewing 4k movies, music and video services. Although, both of these console are similar , sony wins here in terms of better, sleek and attractive design.

xbox1ps4

Winner- Sony playstation 4

Marketing strategy tip: Know your audience and target it. If target customers are mostly gamers, then build and design the product according to customer needs.

  • Price-

Price is one of the deciding factor for customers. Sony kept premium pricing with respect to its high end computing powers and premium features. Still the price of Sony Playstation 4 was $100 less than Xbox one during its launch in 2013. This surely led to increase in sales of Playstation 4 compared to other rivals. After six months of its launch, Sony slashed down the price of the console whenever a rival launches a new product or novelty factors fades away.

Xbox: $499

PS4:  $399

Winner- Playstation 4

consolelaunchpricing3

Marketing strategy tip- Know your target customers. Will they be able to afford it ? Is price point important to the target audience.

  • Promotion-

In February 2013, Sony released a teaser advertisement just to letting people know that Playstation 4 is forthcoming. In May, Microsoft promoted more than just a teaser, they released product details and news limiting game usage. At E3 (Electonic Entertainment Expo) both these company officially announced their product details.

Xbox :- Various new feature of xbox one, and exclusive xbox one games, but with limited gameplay usage that means xbox need to have a internet connection every 24 hours for games to work.

PS4- Sony played it clever here, and did not offer any information about this, instead they offered that PS4 will be able to play used game also (offline mode).

In addition to this, Sony video promotion main method was to show off the main and exclusive games on PS4, as target audience were mainly gamers.

While there is more than one aspect of marketing mix. The promotion strategy also creates an excitement and hype among the target customer around the launch dates, the need to have the latest console with cutting edge technology and real life like games, which created a buzz amongst the fan.

PS4PX.jpg

Shoppers wait in line to purchase the new PlayStation 4 (PS4) late November 14, 2013 for a mid-night opening of Best Buy .

Winner – Sony Playstation 4

  •   Place-

Both these company utilizes online and offline distributors like Amazon, Gamestop, Best Buy and Wal-mart. Due to its high price, these consoles are expected to sell at premium entertainment outlet only.

The basic 4Ps Of marketing can help grow any business. Covert weakness into Strength and help grab control of the market.

References –

https://hbr.org/2013/11/three-strategy-lessons-from-the-latest-round-of-xbox-vs-playstation/

http://www.marketing91.com/marketing-mix-of-sony-playstation/

http://www.infusefive.com/2013/06/12/the-5-ps-of-marketing-how-sony-beat-microsoft-wit-this-basic-marketing-mix-business-tool/

http://betanews.com/2015/02/18/40-percent-more-playstation-4s-in-use-than-xbox-ones-by-2019/

https://www.youtube.com/watch?v=x7QhUL8NUK4

 

 

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