The features of this console were graphics of high quality and enhanced sound effects. It made the millions of gamers all over the world reconsider their conception of a quality gaming. (Mizuno et al, 1994)
The fist unit gained so much popularity all over the world, that a new improved version of this computer system was soon released. This was PlayStation2. As the Sony specialists describe this hardware, "PlayStation2 is designed to combinetraditional interactive video gaming with music and DVD functionality". (Mizuno et al, 1994) Ken Kutaragi from Sony Computer Inc. said the following about this new improved system: "Just as PlayStation brought interactive gaming to an unprecedented mass market, PlayStation2's combination of breathtaking digital graphics, superb sound and DVD video will open the doors to a new computer entertainment experience in the home". (qtd in Mizuno et al, 1994)
In addition to improved graphics and sound, the new system had few technical enhancements: it allowed easy process of transition due to interoperability of the games developed for Sony PlayStation 1 and accessories made especially for the games of PlayStation2. Sony PlayStation2 was released at the beginning of 2000, and it quickly found lots of faithful gamers long before chief competitors of the company, Nintendo and Microsoft.
Strategic management concepts and their implementation in the case with Sony Entertainment Inc. have some specifications that are necessary to be observed and investigated in order to understand success of this company in the period of 1995-2005 year.
The first item to be observed is the resources. The company's strategy is to change fully its electronics niche by means of connecting more goods with their games and their business in the sphere of entertainment in general. Sony obtains the resources, and it was reported that they sold about 30000000 of PlayStation2 units all over the world before the price cut. CSFB (Credit Suisse First Boston) supposes that Sony has shipped about 8000 000 of PlayStation2 units in North America after the unit was introduced. The commentators write that "price reductions are usually made to acquire market share, but this hasn't been a problem for them. Estimates through March made a showing that 70,000 plus PS2's were sold each week compared to 60,000 plus Xbox's and GameCube's combined". (Schlender, 2005) It is customary to regard Sony as a company that has resources to produce profit due to experienced staff, managers, and their successful efforts of bringing all their products into success.
The next issue is skills or capabilities. Sony Entertainment Inc. has a staff capable of producing innovations. In addition, this company is supported by game directors, computer experts and developers in all countries of the world. They also have numerous affiliations with various companies that help them in support of their devices. Here are some reports in the news concerning Sony products: "Their latest game a crime epic called The Getaway will make a stunning appearance". "Sony Computer Entertainment Europe's Team Soho and Ascension Technology have set a new standard for motion capture: Production for the forthcoming PlayStation2 game The Getaway was the first ever to capture the motions of five performers at once, in real time".