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Digital Gaming Industry: A Case of Sony Play Station - Essay Example

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Digital Gaming Industry: A Case of Sony Play Station

The production of the gaming consoles in the modern world requires state of the art system specifications and future trend inculcation. The gaming consoles should be light in weight and small in size in order to add the feature of portability. Because the youth is the primary target market of the gaming industry, the proposed gaming console should be made in such a way that it can support not only the games but other features as well for example the internet surfing (Wi-fi) and most importantly multi-player online gaming is a must feature for all the gaming consoles that are coming in future.The management of the gaming console production company, which is Sony in this case, should keep an eye on the released games and should also makes some pact with the game production companies so that the game production companies produce the games that are run only on their consoles. There are many incidents in history which show that there were some games produced by the production houses of gaming which did not run on specific consoles and other gaming console company had to bear huge losses in the monetary terms. The Sony Company should make sure that they take the respective gaming feature in account before launching any gaming console.  There are number of other factors which should be taken in to account for example the outlook of the gaming console. The weight of the gaming console and the color is also very important. The play station four must have some artificial intelligence....
In the maturity and decline phase, the Research and development costs are lower as the product has reached a standardized production mechanism and no further advancements are possible or needed keeping the stable or declining trends in sales volume in view. The production and advertising costs, on the other hand, are either low or moderate in the introduction phase for a competitive and technologically rich industry like digital video gaming. These costs are at its peak during the growth phase and are reduced to a moderate level during maturity when the market is captured and sales are quite stable. The costs are fairly low in the declining phase as the product is abandoned or transformed into a new product which is modified and starts up with its own product lifecycle (Hansen, Mowen & Guan, 2009: pp. 389-92). (Sony Computer Entertainment Inc.) The above data of Sony PS3 sales is further a proof of product lifecycle sales trends. The recent drop in sales, up till now, shows that the product has moved towards its decline phase and we may reasonably assume that the major costs incurred have been recovered by the company. The play station 3 consoles have given Sony an enormous on each unit sold. As per the life cycle pricing technique, the company lowered the price now at the end of its maturity and beginning of its declining stage. Sony is not producing play station 4 up till now and gaining time to let the market expand with new trends. The opening price was high like any other product within the digital video gaming industry. However, due to fierce competition, Sony reduced the price to $500 in order to increase the sales. This, indeed, worked out for Sony as seen in the year 2007 (Wisner, 2008: p. 141). After the advent of 3D games ...Show more


This paper “Digital Gaming Industry: A Case of Sony Play Station” aims at discussing the use of target costing and life cycle coting in the ever-changing and developing digital gaming industry. The digital gaming revolution has brought more competition than ever.

Digital Gaming Industry: A Case of Sony Play Station essay example
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