Among the notable improvements in the computer world that attribute their success to the gaming industry, including sound cards, graphics cards, and 3D graphics accelerators. CD-ROM and DVD-ROM drives also base their invention in the gaming industry (Hooper 1991). Sony has been in the industry for a considerable number of years and has been the key provider of the video games with its PlayStation devices. Regardless of the increased competition, the industry’s future is still very promising as more people buy and use games. Sony has been in the industry for a long time, but its sales and revenue from the business has been declining considerably with time. This is due to various reasons, some of which the company has control over, while others it cannot control. As more people use games, more players come to the market, increasing competition. Changing customer tastes, substitution by other forms of games and environmental factors could be a reason for the decline in the performance. However, despite this, the company is likely to remain in the business for a long time. Q 1 Porter’s five competitive forces Competitive rivalry Sony is operating in a very competitive industry, with many firms coming up with different forms of gaming. With the increase and technological revolution, many companies have started providing games via digital devices, for example, smartphones. Other companies have gone a step further to provide online streaming of games for their customers where people can play games online from the internet. Regardless of the stiff competition, the company is currently facing, Sony’s consoles are not about to be edged out of the market anytime soon due to increased innovation and inclusion of a variety of features if the recent launch of PlayStation 4 is anything to go by. Although prospects are high in the gaming business, expectations are that in future, the profits will keep on dwindling and the next generation of games will never rake even half of what the current is making. Stakes are high, risks have increased to the point that currently, Sony is struggling to command superiority in the same market that it had previously dominated. With increased uptake of technology, research, and experiments in the industry, more and more developments are coming to place.