Hardware Makers
Sony Case Compe on Summer 2014
James B. Storey Kelley School of Business The Market Leader? Not so much. Nintendo Stock 2002-2012
DSi
3DS NGC Wii DS
Price Cut
Source: Morningstar Quotes Nintendo Stock 2012 Wii U NA launch
Launch announcement Nintendo Stock 2013-14 Last Price (1/15/14) $18.20
Microso Stock Last Ten Years
Xbox Kinect 360 W7
RRoD 360 S
Source: Morningstar Quotes Microso Stock 2012
Win 8, Surface, and Windows Yammer Phone 8 public launch purchase ($1.2 bil) Microso Stock 2013-14
Xbox One Launch Sony Stock 2002-2012
As of spring 2012 PS3 PS2 PSN slim breach PS3 slim Vita
PSP PSP Go
Source: Morningstar Quotes Sony Stock 2012 “One Sony” Plan, Kaz Hirai CEO
$380 million purchase 7th straight quarterly loss Sony Stock 2013-14
PS4 Worldwide Launch Company Strengths Weaknesses -recognizable IP, nostalgia -yen to dollar exchange rate -family friendly -lack of 3rd party support -1st party Japanese studios, including EAD -hardcore gamer disappointment with Wii and Miyamoto -percep on of technological inferiority -market dominance in handheld and -unreasonable expecta ons for innova on console sales -franchise fa gue -massive cash on hand -will demo make jump to next-gen? -first mover on mo on controls, 2nd screen -a genera on behind in online -“Evergreen” Mario, Zelda tles, especially infrastructure on handhelds -early launch of WiiU, .5 genera on -3rd party rela ons -Kinect alienates target demo -ease of development -rela ve lack of 1st party studios -massive corporate resources -shareholder sway -huge marke ng budgets -no presence in handhelds. Li le in -proprietary graphics tech (DirectX) phones. Nonstarter in Japan. -dominance in FPS genre -franchise fa gue (Halo eclipsed by CoD) -top-selling console in NA in 2011 -impression of inferior hardware (RRoD) -mature, profitable, closed XBL -closed online upsets Valve, EA -Windows integra on likely -willingness to fight tech ba le or desire to -so ware company chase Nintendo’s market? -largest, most talented 1st party studios -current company financials -owns hardware plants, controls BoM -yen to dollar exchange rate -percep on of high-end products -ten-year lifecycle PR -blu-ray + cell advantage (dwindling) -PSP piracy and poor sales in NA -legacy IP, brand recogni on -slow Vita launch -movie and music studios (untapped) -PS3 ports of 3rd party tles -’open’ online (Steam partnership) -poor PSMove sales -’free’ PSN, Gaikai infrastructure -6 mil deficit in NA from arriving year late -handheld presence -2011 sales below expecta ons -Europe and Japan -burdened by underperforming TV sales -technical innova on, despite loss of -poor performance in phones (Xperia Play) Kutaragi. -execu ve turnover (Stringer -> Hirai) Legacy Intellectual Proper es
Mario, Mario Party, Mario Kart, Fire Emblem, Earthbound, Zelda, Donkey Kong, Kirby, Kid Icarus, Pikmin, Smash Bros, WiiPlay, Metroid, Animal Crossing, Nintendogs, StarFox, Punch-Out!
Age of _____, Halo, Flight Simulator, Banjo- Kazooie, Conker, Crackdown, Blue Dragon, Lost Odyssey, Fable, Forza, Kameo, Kinect ____, Perfect Dark, PGR, Shadowrun, Zoo Tycoon, Viva Piñata, Gears of War (owned by EPIC)
Killzone, LBP, The Order: 1886, Bloodborne, Uncharted, inFamous, Twisted Metal, Warhawk, Sly Cooper, The Last of Us, Ico, Shadow of the Colossus, Motorstorm, SOCOM, Gran Turismo, God of War, Syphon Filter, Jak and Daxter, Ratchet and Clank, Resistance, MLB: The Show, Pixeljunk, Singstar Console War Worldwide Sales 2013
160 140 120 100 80 5th Gen 6th Gen 60 7th Gen 40 20 7th Gen 0 6th Gen Nintendo 5th Gen Microsoft Sony Sega A note on sourcing: NPD, shipped vs. sold-through Console Worldwide Sales March 2014
PS4 7.2 Million XB1 5.2 Million WiiU 6.2 Million*
*Year head start Console Worldwide Sales March 2015
PS4 22 Million XB1 12 Million WiiU 9.5 Million
Source: Leaked NPD totals (NeoGAF)