Marketing Strategies for PS4: A SWOT Analysis and Recommendations

The new gaming console PS4 has been released, and Nintendo and Microsoft have also launched their own consoles, Switch and Xbox one, respectively. The market is competitive, and to succeed, it is recommended that the companies consider new value chain strategies to overcome weaknesses in marketing. Additionally, research should be conducted to identify compatible consoles with moderate internet speeds to attract a wider audience. Marketing concepts such as promotions, advertising, training salespeople, pricing, and customer retention strategies should also be considered to increase brand loyalty. Finally, educational games for younger children and kids should be designed to increase purchasing capacity.

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Marketing Planning for PS4 gaming consoles
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Executive Summary
Entering into a new market requires proper market analysis. Factors such as marketing,
promotion, sales strategy, positioning is considered vital components while making a market
analysis. The key marketing decision needs to be taken in selecting the appropriate marketing
channel namely advertisements through digital media. Introducing PS4 into American and
Canadian market is no less than a challenging task for Sony. The issues have arisen while
marketing the product is high competition in the target market. The target customers of PS4
would be the hard-core and mainstream gamers in the target market because as per the market
reports, they spend most of their time in playing new games such as FIFA, The Grand Theft,
Call of Duty and many others. The marketers will use the price-quality positioning strategy as
it provides an opportunity to enter the new markets. It is recommended that to overcome the
weakness in marketing companies can follow new value chain strategy where it has been
modified the processor of a gaming console.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................5
Current Situation........................................................................................................................5
A. SWOT analysis..................................................................................................................5
Strengths.............................................................................................................................6
Weakness............................................................................................................................6
Opportunities......................................................................................................................7
Threats................................................................................................................................7
B. Five most important SWOT factors..................................................................................8
Target Market Segmentation......................................................................................................9
Who:.......................................................................................................................................9
What:......................................................................................................................................9
Other Specifics:......................................................................................................................9
A. Segmentation Approach..................................................................................................10
B. Profile of Target Market.................................................................................................11
Hard-core Gamers- the Mid to Late '20s..........................................................................11
Mainstream Gamers- Beyond '20s...................................................................................11
Digitally Savvy Gamers- Undefined Age Group.............................................................11
C. Primary Targets...............................................................................................................12
Marketing Objectives...............................................................................................................12

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Product Positioning..................................................................................................................13
A. Positioning Strategy......................................................................................................13
B. Positioning Map...............................................................................................................14
C. Appropriateness of Positioning Strategy.......................................................................15
Marketing Mix.........................................................................................................................17
A. Product:...........................................................................................................................17
B. Price.................................................................................................................................18
C. Distribution......................................................................................................................18
D. Communication...............................................................................................................19
Implementation Plan................................................................................................................21
A. Implementation Schedule:...............................................................................................21
B. Measurement and Evaluation:.........................................................................................24
C. Implementation Tactics:..................................................................................................25
D. Contingency Plan:...........................................................................................................26
E. Research Plan:.................................................................................................................27
Financial Projections and Implications....................................................................................27
A. The projected pro-forma income statement for two years..............................................27
B. The projected pro-forma break-even analysis for two years:..........................................29
C. Discussion on Financial implications..............................................................................30
Overall Recommendation.........................................................................................................32
A. Recommendation as per marketing plan.........................................................................32

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B. Recommendation as per SWOT analysis........................................................................32
C. Recommendation as per marketing concepts and terms or the information...................33
Conclusion................................................................................................................................33
References................................................................................................................................34
Appendices...............................................................................................................................37
Appendix 1...........................................................................................................................37
Appendix 2...........................................................................................................................37

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Introduction
The video game console is considered as the interactive entertainment computer or the
electronic device which manipulates the video display signal through a display device, like
television or monitor etc. The video game console thus traditionally refers to have a raster
display device which is used as the popular use for the term as a video game which implies
all the display types as well as the formats. The term console thus refers to the use of user
manuals for several video game systems. There are many specific parts of this console system
which actually controls the entire game.
This Study focusses on the marketing plan of PS4 gaming console in America and Canadian
market in respect to two direct competitors, Xbox one and Nintendo Switch.
Current Situation
A. SWOT analysis
The SWOT analysis is one of the most preferred methods of analysing the overall strategic
position of a business as well as its environment. According to the point of view of the
scholars Phadermrod et al (2019), the key purpose of SWOT analysis is to recognize the
strategies to create a firm-specific business model that would help in aligning and allocating
the resources and capabilities in the best possible ways.
Table 1: SWOT Analysis
Strengths
 Easy-to-use software.
 Strong distribution channels
 Strong market position
 Strong multimedia support
Weakness
 Delay in launch
 Less innovation
 Less exclusiveness
 Expensive

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 High-quality function
Opportunities
 Introduction of exciting games
 Trending use of cloud-based service
 Grow through acquisitions of new
games
 3D capability
 Expansion of business in new markets
Threats
 Intense competition from successful
operating systems
 Changes in technology
 Changing demographics
 Recession
The above table 1 represents the SWOT analysis of PS4 gaming console. The strengths,
weakness, opportunities, and threats have been presented in a brief form which highlights the
resources and capabilities as well.
Strengths
The major strength of PS4 is its easy-to-use software which makes it the most powerful next-
gen console (Forbes, 2013). In addition to this, due to its demand in the market with all types
of players, the gaming console has gained a strong market position as well (Forbes, 2013).
Moreover, the gaming console has high-quality function along with strong multimedia
support thereby making it one of the most renowned brands in the industry. The organization
has strong distribution channels as well which helps in providing the best network for the
potential users to avail the gaming console.
Weakness
The PS4 gaming console was introduced in the market so as to overcome the weakness of
PS2 and PS3. Though it was able to cover up the challenges and issues of PS2 and PS3,
however, there was a delay in the launch of PS4 due to technical errors thereby making it
difficult for the organization as well as the customers to make the best use the product.
Moreover, as the latest technology and software updates have been used in the PS4 gaming
console, it is far more expensive than compared to any other games (Star Tribune, 2013). As

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it is an update of PS2 and PS3, there is less innovation and exclusiveness in the gaming zone.
Customers sometime may find no difference in all the three versions of the gaming console,
apart from the games and technology.
Opportunities
The strengths of the PS4 gaming console provide it with good opportunities in the
market expansion (Forbes, 2013). As it uses the latest technologies to provide the customers
with the trending games, there is a good opportunity to introduce exciting games which
would attract the players largely towards the new games, thereby reducing their boredom. In
addition to this, there is also a good opportunity to expand in new markets such as America
and Canada due to the presence of new generation customers' who are tech-friendly and
demands innovativeness at all levels. Therefore, the 3D capability of PS4 will provide it with
good scope to expand in both existing as well as new markets (The Verge, 2014). In addition
to this, the cloud-based service is another key opportunity, which would enable it to gain
more momentum in the market.
Threats
The major threats include intense competition from the rival gaming console
organizations such as xBox one and Nintendo Switch (Game Revolution, 2018). These
companies have already gained immense popularity all over the world market due to the ease
of use technology as well as latest developments made so far that have provided the players
with an opportunity to avail exciting new games at a reasonable price. The pricing factor
remains a major drawback for PS4due to its 3D gain experience (Star Tribune, 2014). In
addition to this, change in demographics will cause a market reduction for PS4 because the
customers of such games are limited. Moreover, changes in technology have always remained
one of the crucial factors which become reasons for the failure of most of the gaming
consoles.

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B. Five most important SWOT factors
The above evaluation of the strengths, weakness, opportunities, and threats provides
an overall analysis of the potency as well as limitations of the PS4 gaming console. Among
the above points, the five most important SWOT factors include innovation, trending use of
cloud-based service, competition from existing market players, changing demographics, and
expensiveness. It is significant for the organization to take into consideration and give more
stress on these five factors before the introduction of the gaming console in the American and
Canadian market.
Innovation has remained one of the crucial aspects of technology-based services. Less
innovative features hardly attract customers, whether it is a new game or an update of the
existing version. On the other hand, Babuand Krishna (2016) contends that the cloud-based
features that have been introduced in most of the games provides an opportunity for the
players to save their games and their levels to play from the same point where they left, rather
than beginning from level 1 once again. The rising competition from xBox 1 and Nintendo
Switch might become an obstacle for PS4 in the new market because both the gaming
consoles have introduced exciting new games and have become the ultimate entertainment
console with Ultra HD Blu-ray playback. Thus, the intense market competition becomes a
significant factor for the organization.
As the PS4 gaming console has been introduced in the market with the use of latest
technology, it is far more expensive than other consoles; therefore, the rise in the cost of
purchase of the gaming console will make it unreasonable for the potential customers to
prefer PS4 over other gaming consoles in the market providing similar features. On the other
hand, changes in the demographics of the new target market will cause a decrease in the

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demand for PS4. Thus, the above 5 SWOT factors are important to understanding from a
marketing perspective.
Target Market Segmentation
Target Market Segmentation involves breaking down a market into different segments as well
as concentrating the marketing efforts over those key segments that most closely matches the
products and service offerings (McAlexander et al, 2016). In addition to this, it becomes
essential to breakdown a huge mass population of targets into different segments because it
makes it easier to approach them with the use of most appropriate marketing strategies. As
Sony PS4 is highly focused on gaming, the target market would be the gamers from
American and Canadian landscape who spends most of their time in search of new games.
Who:
The target market will be both male and female hard-core gamers as well as mainstream
gamers.
What:
Sony PS4 aims for market expansion in the American and Canadian landscape; therefore,
first target would be people from Central America and central Canada. Both these places
have the highest population than compared to other specified areas on the territories.
Thereafter, the next focus would be towards northern areas of America and south Canada so
as to gain competitive edge in the market.
Other Specifics:

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People from the American and Canadian landscape within the age bracket of 10 years to 34
are the most suitable targets for the product as they spend most of their time in gaming
activities and spends over 10 hours per week in playing games on their devices.
Children above the age of 10 years to 15 years desire to play both arcade and action games,
and thus, opportunity will be provided to them to enjoy playing games at both themes. The
mid-20’s age group, whether male or female, prefer playing theme based and action games
such as FIFA, cricket and such and aims to generate highest scores within their friends circle.
Therefore, this group will become the primary targets as they are the hard-core gamers.
A. Segmentation Approach
Segmentation begins by recognizing and classifying all the potential buyers for the product as
well as services that are offered that appropriately match their need as well as their means to
buy. McAlexander et al (2016) contend that in most of the cases, target market corresponds to a
large mass people or organizations with similarity and some differences. The segmentation
process helps to narrow down focus over the most promising groups. There are a number of
segmentation approaches subject to the marketing and business objectives. These include
geographic segmentation which is based on regional and area of the target markets,
demographic segmentation is based on the age, gender, family size, income, religion,
occupation, education nationality as well as ethnicity. On the other hand, psychographic
segmentation involves lifestyle, personality, social class, and attitude, whereas, behavioural
segmentation involves classifying the customers based on their readiness to purchase, loyalty,
status, and purchase occasion.
Amongst the above different types of segmentation approach demographic segmentation
would be appropriate as the product that is being offered are subject to age, gender and
income of the potential customers. The demographic segmentation will divide the market of

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the PS4 into two major segments, i.e. male and female, with young and old gamers or players
that would help in expanding the business to a wider mainstream of entertainment.
B. Profile of Target Market
While Microsoft advertises the Xbox One as a mass-market device indispensable for any
living room, Sony with its PS4 is more narrowly focused on hard-core gamers as well as
mainstream gamers (Ad Age India, 2013). The target market of PS4 gaming console would
be people within the age bracket of 10 years to 34 years of gamers.
Hard-core Gamers- the Mid to Late '20s
This group will generally involve those people between the age group of the mid to late
twenties and is mostly single. Though both male and females prefer gaming zone at their
comfort levels, however, predominantly the male groups spend more time playing games, for
the reason that gaming is their primary leisure activity. It has been studied that the male
population spends more than 10 hours per week in gaming activities.
Mainstream Gamers- Beyond '20s
This group will involve considerably older as well as less male-biased population. It will
include those who are already married have children or are planning for the same and are
quite cautious while spending money. This group will also include regular gamers,
predominantly playing the blockbuster titles, for instance, Call of Duty, FIFA, along with The
Grand Theft Auto (The Sun, 2017).
Digitally Savvy Gamers- Undefined Age Group
Due to globalization and technological advancement, people strive to become digitally savvy
in the digitally revolutionized world. From ICT to the gaming zone, people are becoming
more tech-friendly and ready to implement any new changes that ascend in the market. This
group will involve those people who belong to both hard-core and mainstream group but with
a more enthusiastic approach towards selecting digitally advanced games, no matter the cost

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of each game. The Americans are well known for their readiness towards digital technology.
Therefore, the group will involve both male and females who are young and skilled gamers
and have a thirst for exclusiveness in games. This group will have more spending power than
compared to the other two groups.
C. Primary Targets
Gaming consoles have not only been accepted as the most preferred mode of entertainment
by the gamers, but also by the non-gamers who spend less time in such activities during their
leisure time. There are a number of people all around the world who hardly spend have
leisure time but enjoy playing gaming consoles in their free time. They have a thirst for
playing innovative games occasionally. However, such gamers cannot be made the prime
targets because it would slow down the sales approach of the organization. Thus, the primary
target market would be the hard-core gamers who spend most of their times in search for new
and innovative games. Their earnings and spending activities matter the most while they
purchase gaming consoles, because of their readiness to make a deal for innovativeness and
exclusiveness in new games. While the other two markets, namely mainstream targets and
digitally savvy targets will be a secondary option.
Marketing Objectives
While deciding the approach for marketing of the offerings made by an organization, it is
essential for the management to have a thorough analysis of the marketing objectives which
needs to be attained. Defining the marketing objectives makes it easier to reach the target
market and drive their intention towards procuring the products. The objectives of the
organization with its PS4 product is to become the most talked entertainment launch that
drives the desirability as well as advocacy for PS4 beyond imagination. The marketing
objective is to reach the maximum number of target clients both primary and secondary, in

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the American and Canadian market and convert the potential customers into the ultimate
customers which would increase the sales. In simple words the marketing objectives can be
summarized as below:
1. To enter the American and Canadian gaming industry and drive the intention
of the hard-core and mainstream gamers towards PS4
2. To expand market share and improve product awareness
3. To establish the product in the marketplace and increase production, sales as
well as exports
Product Positioning
A. Positioning Strategy
No matter which marketing strategy is selected for the purpose of promoting the products and
services in the target market, but the positioning of the products are far more important which
in turn enables the organization to identify the potentials of the offerings. An effective
positioning strategy takes into consideration the strengths as well as the weaknesses of an
organization, the needs of the customers along with the target market and positioning of the
competitors. In the view of McAlexander et al (2016), the rationale of a positioning strategy is
that it allows highlighting explicit areas that would help the organization to beat their
competitors.
There are a number of positioning strategies that have been commonly used by the marketers,
namely value-based positioning, use-application based positioning, price-quality approach,
competitor approach, cultural symbol approach, and many others. The most appropriate
positioning strategy for PS4 would be the price-quality approach. Though expensive, the PS4
has a relatively low price in comparison to Xbox One and Nintendo, providing the same

More
Entertainm
ent Feature
Low Price
Sony PS4
XBox One Nintendo Switch
X-axis
Y-axis
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quality of gaming experience. Therefore, with a good brand image in the existing markets,
price-quality positioning strategy will provide an opportunity to enter the new markets.
The positioning statement for PS4 will be: Providing the most entertainment for all gamers
through gaming experience, multiple video apps, and USB compatibility. With a great
product, a clear launch strategy, as well as a great campaign, it will become absolutely
appropriate for the organization to take the pride of the gaming console in the American and
Canadian market.
B. Positioning Map
Figure 1: Positioning Map PS4
Defining the positioning strategy is not adequate unless it is illustrated via a positioning map.
In the words of McAlexander et al (2016), a positioning map helps in identifying the position of
a product in a new market or a new product in an existing market with a competitive analysis
with the rival firms.
High Price
More
Gaming
Features

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The above figure represents the positioning map of Sony PS4 which is based on price-quality
strategy. The x-axis denotes the features and Y-axis denotes the pricing. The features include
the offerings made by the companies through their products, such as entertainment feature
and gaming feature. Unlike Xbox and Nintendo Switch, PS4 is highly oriented towards
providing more gaming feature than compared to entertainment.
From the above image, it can be seen that Sony PS4 has been placed on the x-axis which is
more oriented towards more gaming features and y-axis with relatively low price in
comparison to its competitors. More than an entertainment product, PS4 serves its customers
with gaming options with new trends. With the positioning map, it will be easier for the
customers to identify the features of PS4 and its competitors as well.
C. Appropriateness of Positioning Strategy
An evaluation of the appropriateness of a positioning strategy helps in defining the strengths
and limitations of the ultimate decision. In the words of the academics, Babu and Krishna
(2016) - it is essential to take into consideration various factors when evaluating positioning
strategies for entering into a new market. Such factors influence the brand image as well as
the corporate leadership of an organization. Clarity in positioning the products or offerings
made by an organization helps in driving the attention of potential customers.
The price-quality positioning strategy optimally prices the product in accordance with the
quality of the product in order to keep the product higher in the customers' mind that
compared to the offerings made by rival firms. In addition to this, the strategy also impacts
the brand attributes which defines what the brand delivers through its features so as to benefit
the customers. The pricing need not be the highest of all the competitors to gain popularity or
position itself even in the most competitive market.

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In the present case, in the industry positioning, xBox one has been accepted for both
entertainments as well as gaming features, whereas, it is more of an entertainment console.
On the other hand, Nintendo Switch also offers its customers with similar features which
include exclusive games as well as fun and entertainment zone with dual attributes. However,
Sony PS4 is only meant for the hard-core gamers who only wish to play games 4rather than
getting entertained at their leisure time. In comparison to the other two gaming consoles,
Sony PS4 needs to upgrade its systems and technical features so as to meet the industry
benchmark. In addition to this, it is also essential for the organization to introduce the product
at a relatively competitive price else the customers might perceive PS4 as a low-quality
product which is offered at a cheap price. Thus, with innovation and technical advancement,
Sony must also focus on the industrial benchmarks in the American and Canadian markets. It
will also be necessary for the organization to focus on the non-gamers as well; else it might
lose its market strengths in case the demographics or preference of the customers change with
time.

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Marketing Mix
It is considered that the Nintendo Corporation is one of the leaders in this software gaming
industry. It is also needed to consider that marketing and sales are part of these primary
activities. The organization is utilizing this as the added values in various ways. As per Moats
(2012), most of the gaming companies target children. But Nintendo is found to focus on all
types of age groups. Also Microsoft the creator of Xbox series wants to meet the global
market as per its brand name. But in the case of PS4 gaming consoles, Nintendo Corporation
Ltd. has sold a number of game consoles of Nintendo Switch than the Xbox series games by
Microsoft (Shay & Palomba, 2018).
Marketing mix functionalities are being discussed as follows:
A. Product:
The main succeed of Nintendo gaming console has been attributed with the wide variety of
age groups as the product has been developed in order to cater for. At the first stage, there
was a simple gaming console. Nintendo utilizes this fact and they have redesigned another
controller which will be easy to use and it will provide real-life situation more than the
fantasies. The Switch series PS4 games have a wand, such as, the controller which looks like
the TV remote and the motion detectors that translate the movement of the wand within the
on-screen action(Ozalp, Cennamo, & Gawer, 2018). Other than this there is a port which has
been allowed for a different number of controller add-ons which are needed to be used. This
product thus found to expand in ‘exergaming’ as it involves the combination in the screen
action as well as the physical exercise. The series game is found to made to be compatible
with all the other previous games, i.e. it has the backward compatibility which would be
connected with the internet in behalf of the online news as well as the weather updates

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together with that it will download various types of classic games. Thereby, the organization
may be able to recoup back to the expense within the lower volume of sale (DeMaria, 2018).
B. Price
It has been ever checked that Nintendo offers lower cost hardware and thus it only focuses on
the effect which is required a lesser HD space which will enable them for developing the
games console at the price which is about half of the expend on Xbox as well as PS 4 gaming
console. The focus of Nintendo is found to be in-house titles which have the direct impact for
its revenue, which Microsoft and Sony which is found to hope for the profit from the
software sakes in case of Nintendo made profits through both the software as well as
hardware. In the market of the US and Europe, it is found that the retail price is much higher
where the retail price for the Wii or Switch game console becomes higher. Thus, the gross
profit margin for US $49 can be found the US $49 per console which has been recorded for
the same period of Sony PS3 (Smith, 2015). It results that there is a unit loss amounting like
the US $306.85 as excluded the packaging, controller as well as the cables and there is an
estimated loss from Microsoft end as about of US $125 for each console.
On the other hand, Nintendo is found to sell at $259 as compared with Microsoft Xbox which
has been found to sell at $399 and also Sony PS3 amounting $499. Besides this, for
increasing the sale within these two competitors they are found to continue cutting down the
price. Such as Sony Ps3 has cut the price by $100 in the month of August and also Microsoft
also slashes down the price of Xbox 360 by $100(Cox & Kaimann, 2015). In this scenario,
Nintendo is found to be stability in the market by decreasing the price by $59 within
September.
C. Distribution

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Nintendo Corporation has announced its first product in April 2006 and the new gaming
console has been announced within 2013 with the new name of gaming console as Nintendo
Switch. Before this product, there is a Wii which is also a powerful gaming console in this
industry; especially the gaming console is being designed for all. While in 2006 the gaming
console has been released, many people have anxiety that it would not be an affordable price
range console. But Nintendo is capable to provide this fun making a game within an
affordable range (Jenson & Droumeva, 2017). In this respect, the massive demand has been
created and at the same time, there is a tension created within the market place where
Nintendo failed to meet the much increasing population demand for creating the population
for the people who are looking for gaming consoles Wii or Switch. In every week, the
consumer call can be seen as the major retailer outlet, such as GameStop or Wal-Mart stores
which target to check out that whether there is the availability of Switch or Wii and it is very
often has been found the same response from the consumers. It is also needed to trace that
there is lack of an adequate number of retailer outlet as enough number of distribution
channels belong to Nintendo Co-corporation. It is needed to thus keep in mind that the market
should be responsible to aware of this shortage of production materials and fair which may
happen within the DS era. So Nintendo would not be able to forecast the appropriate demand
situation. Also, some people have a belief that Nintendo would deliberately create the
scarcity for making Switch more important but it is also found that there is no such evidence
for supporting the claim. Thus this situation is found to be same over two years, in spite of
which there are the production and 48 million units for almost twice the Xbox one or 360, has
been sold after the release of Wii or Switch(Peeples, Yen, & Weigle, 2018). At the last, all
types of gaming console have been found to available for those people who want to pick up
one from the retailer store.
D. Communication

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The communication plan is mainly related to the promotion pan of the software gaming
console. In the year of 2001, it is found that Microsoft has entered in the video games
business and the determination of Microsoft is needed to capture for the top spot within the
market and also it is coming up with the other gaming console of Xbox 360 within November
2005. It is actually possible to record the success in case of coming second which is behind
Sony's Ps2 or Ps 3. In spite of having these strong competitors, Nintendo has entered within
the market with their unique product Wii or Switch. It is only possible for the high level of
communication strategy for which people are found to beg to check the video game industry
for various perception that both the young and adult who even do not know about the game
can take more interest by taking entertain by themselves with the new gaming console.
Therefore, the communication strategy has been found to use in the sense of development for
the simple console which is easy to learn and has been designed in the sense that it can be
captured by all kind of age groups as well as gender for the large market shares. In the case of
long term measure, more value is needed to add at the output from the short term
measurement, especially for the competition point of view (Eckstein, 2018). Often it has been
found that consumer is requested to Nintendo to open a complain site so that the customer
could submit the complaint as per their possible time and requirements or replacement of
parts. This communication channel will definitely help Nintendo more for getting a response
from the customers. It is thus needed to improve the controller and also its detector which
will make use of the in-built camera rather that it will capture the movements of the gaming
players in 3D or 4D ways. Also, the whole body is thus can be served as the controller
eliminating the joy strike with one of a new customer segment as it is found to preface some
more better things than the controller as well as a joystick which is needed to be
created(Novak, 2016).

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Implementation Plan
A. Implementation Schedule:
The implementation schedule for PS4 game console is designed with the help of Gantt chart
and it has been given as follows:
Task
Mode
Task Name Duration Start Finish Predecessors
Resource
Names
Manually
Scheduled
Developing of PS4
game console
100 days
Fri
2/1/19
Thu
6/20/19
Manually
Scheduled
Project Initiation
Phase
15 days
Fri
2/1/19
Thu
2/21/19
Auto
Scheduled
Forming the
project team
10 days
Fri
2/1/19
Thu
2/14/19
Top Manager
Auto
Scheduled
developing the
project charter
5 days
Fri
2/15/19
Thu
2/21/19
3
Project
Manager,
Project
Sponsor
Manually
Scheduled
Planning phase 30 days
Fri
2/22/19
Thu
4/4/19
Auto
Scheduled
Analyzing the
system requirements
10 days Fri
2/22/19
Thu
3/7/19
IT
professionals,
Project

22
Manager
Auto
Scheduled
Developing the
scope statement
5 days
Fri
3/8/19
Thu
3/14/19
6
Marketing
consultant,
Senior
consultants
Auto
Scheduled
Developing the
project schedule
5 days
Fri
3/15/19
Thu
3/21/19
7
IT
professionals
Auto
Scheduled
Developing the
partnership program
10 days
Fri
3/22/19
Thu
4/4/19
8
Senior
consultants
Manually
Scheduled
Development
and Customization
30 days
Fri
4/5/19
Thu
5/16/19
Auto
Scheduled
Examining the
outsourced software
codes
10 days
Fri
4/5/19
Thu
4/18/19
Project
Manager,
Project
Sponsor
Auto
Scheduled
Customizing
the web-based
application in order to
meet the project's
requirements
10 days
Fri
4/19/19
Thu
5/2/19
11
IT
professionals,
Top Manager
Auto
Scheduled
Development
of complete and
system ready
10 days Fri
5/3/19
Thu
5/16/19
12 IT
professionals,
Project

23
Sponsor
Manually
Scheduled
Marketing 20 days
Fri
5/17/19
Thu
6/13/19
Auto
Scheduled
Identifying
the market segment
5 days
Fri
5/17/19
Thu
5/23/19
Marketing
consultant,
Project
Sponsor
Auto
Scheduled
Obtaining
the test group
feedback
5 days
Fri
5/24/19
Thu
5/30/19
15
Marketing
consultant,
Project
Manager
Auto
Scheduled
Completing
marketing, the system
will be known as its
milestone
10 days
Fri
5/31/19
Thu
6/13/19
16
Project
Manager, Top
Manager
Manually
Scheduled
Project
Closure
5 days
Fri
6/14/19
Thu
6/20/19
Auto
Scheduled
Project
closing process
initiated and finalized
5 days
Fri
6/14/19
Thu
6/20/19
Project
Manager

24
Figure: Gantt charts
Source (self-created)
B. Measurement and Evaluation:
The value chain strategy is needed to follow in the marketing strategy. It has been needed to
develop the game development as well as the OEM hardware value chain which returns the
licensing revenues which back to Nintendo in order to make it as the hyper-profitable value
eco-system within the organization. Thereby, Nintendo is needed to adopt the hybrid strategy
in terms of integration and follows the contractual channel strategy as per the assumptions of
the role of game developers. It is needed to contain the providers which are even found as the
marketing agencies. They also needed to launch a huge popular subscription for the magazine
as Nintendo Power which is further found to feature the news and the tips for the games in

25
Nintendo. They also refused in carrying the game ads for the magazine as well as the feature
of games by the developers so that they can toe the Nintendo line.
As per the realization of the game quality the marketing strategy thus further needed to be
decided so that it curbs the power any individual complementors. Thereby, Nintendo would
exercise the hard power over those compliments in order to limit the number of games as the
developer for producing the games exclusively.
There are two new value chains which further added a value ecosystem to the gaming
console. At first, there is the brand advertising for value chain marked as yellow in colour. At
present, the brands are needed to try for advertising the game within them. The other is the
connectivity value chain which is marked as green. There are the internet service providers
which provide their internet connectivity through which the console system would ride upon.
C. Implementation Tactics:
In order to overcome the completion of the eighth generation of video game console or PS 4
console where there is mainly two industry, like Microsoft and Nintendo, Microsoft’s Xbox
one has kick-started the console war for the eighth generation from the year 2012. This is the
year ahead for two competitors (Dev & Olsen, 2017). It will move to give them for the
advantageous for the head start. In this scenario, Nintendo's Switch has been released after a
week later. It has been found that Nintendo Switch has included the processing capabilities
within the chip and the consumers also want to get over to most out of this situation. It will
help out the console for the price which is relatively low at US$249.99 which is compared
with the expected for almost twice for PS 4. It has been examined that Switch is much more
inferior to hardware component and thus to overcome this situation Nintendo has utilizes the
strategy of translating the lower manufacturing cost for which it becomes affordable gaming
consoles from the end point of customers(Ghosh, 2017).

26
Also, the features are needs to distinguish that Switch format of the competitors is directly
related with Switch Remote and SwitchConnect24. Thereby, Switch remote can act as the
wireless controller and it can be utilized as the handheld pointing device which would detect
the acceleration within three dimensions. Whereas, Switch Connect 24 is found to enable in
receiving messages and it will updates over the Internet at the standby mode (Johansson &
Kask, 2017).
Also, to overcome the weakness in distribution and communication, Nintendo has adopted
the innovation model on behalf of distributing their unique PS4 game consoles for
overcoming its competitors. It is thus needed to mention that Clayton Christenson has defined
the disruptive innovation model for the innovation of the lower cost as well as performance.
It will target the market segmentation in a new format and gradually it moves towards the up-
market through its performance improvement (Hill, 2013). It also displaces the market
incumbent. In short, Switch is needed to describe as the disruptive innovation model as it
targets various market segments containing the non-traditional gamers like a female or the
older aged players. It is also evident that Nintendo has been found to center the innovation as
well as the strategies as per the console's wireless primary controller in order to achieve the
effects for the disruptive innovation.
D. Contingency Plan:
For marketing the PS 4 gaming console following is the contingency plan is needed to take in
case another plan will be found to fail:
Risk Events Contingency Plans Owner of the contingency
plan
1. There is an inadequate
number of hardware
1. The technical revision is
existing for the hardware
2. Replacement of hardware
1. Technical executives
2. There are lesser associates
and they do not have the
required skill for performing
1. The train is needed to
follow as existing associates
2. Required to hire more
1. Project Manager
2. Technical Leaders

27
the key functions skilled people
3. Unavailability of Key
resources
1. It is needed to identify the
external or consultant for
filling the requirement
1. Project Manager
4. The new communication
plan will not work
1. Needed to add some extra
entertainments offers with
the gaming consoles(Koch &
Benlian, 2017)
1. Business Designer
E. Research Plan:
Nintendo is considered as the efficient company in a case of supply chain strategy which also
portrays the ability for the responsive terns in case of supply-demand forecasting in case of
Nintendo. It is obvious, thus to stay in the competition, Nintendo has to find out the strategic
points of Microsoft in case they have used to promote their Xbox One game console in the
chosen market. Both the companies thus would try to know the launching marketing
information of two new game consoles in the video gaming industry. As the specification of
the product is needed to be highly speculated and that has been said that even that is more
advanced and also tech-creative information (McCamley & Gilmore, 2018). It also needed to
check the BCG matrix situation for which the product is getting launched for the next
generation product. It will bring another new opportunity for Nintendo that they can
accomplish to produce high quality of the product as per the priority of the market. It is also
needed to deliver the product more efficiently where the customers can purchase with no
criticality and can have a choice as per their ages. Microsoft thus is needed to follow the same
situation so that their gaming console can be as per all types of age groups.
Financial Projections and Implications
A. The projected pro-forma income statement for two years

28
REVENUE Year 1 Year 2
Gross sales $800 $1,060
Less sales returns and allowances 130 420
Net Sales $670 $640
COST OF SALES
Beginning inventory $340 $450
Plus goods purchased / manufactured 230 390
Total Goods Available $570 $840
Less ending inventory 450 675
Total Cost of Goods Sold $120 $165
Gross Profit (Loss) $550 $475
OPERATING EXPENSES
Selling
Salaries and wages $120 $150
Commissions 95 14
Advertising 50 12
Depreciation 25 15
Other 47 6
Total Selling Expenses $337 $197
General/Administrative
Salaries and wages $45 $62
Employee benefits 11 15
Payroll taxes 7 5
Insurance 3 6
Rent 12 7
Utilities 3 1
Depreciation & amortization 6 5
Office supplies 2 1
Travel & entertainment 5 6
Postage 5 1
Equipment maintenance & rental 0 0
Interest 0 2
Furniture & equipment 3 5
Total General/Administrative Expenses $102 $116
Total Operating Expenses $439 $313
Net Income Before Taxes $111 $162
Taxes on income 22 32
Net Income After Taxes $89 $130
Extraordinary gain or loss $0 $0
Income tax on extraordinary gain 0 0
NET INCOME (PROFIT) $89 $130
PS4 Gaming Console
For Year 1 and Year 2
(all numbers in $000)

29
For better clear information the annual reports of Nintendo and Microsoft has been followed.
(Nintendo Co., Ltd., 2018) (Microsoft, 2019)
The excel sheet with the template is attached in the Appendix 1.
B. The projected pro-forma break-even analysis for two
years:
Cost Description Fixed Costs ($) Variable Costs (%)
Variable Costs
Cost of Goods Sold 120$ 10.0%
Inventory 450$ 50.0%
Raw Materials 230$ 100.0%
Direct Labor (Includes Payroll Taxes) 50$ 20.0%
Fixed Costs
Salaries (includes payroll taxes) 145$ 100.0%
Supplies 2$ 2.0%
Repairs & maintenance -$ 0.0%
Advertising 50$ 20.0%
Car, delivery and travel 5$ 9.0%
Accounting and legal 3$ 30.0%
Rent 12$ 50.0%
Telephone 5$ 9.0%
Utilities 3$ 8.0%
Insurance 3$ 9.0%
Taxes (Real estate, etc.) 7$ 8.0%
Interest -$ 0.0%
Depreciation 25$ 40.0%
Postage 5$ 6.0%
Furniture and equipments 3$ 8.0%
Miscellaneous expenses -$ 0.0%
Principal portion of debt payment -$ 0.0%
Owner's draw -$ 0.0%
Total Fixed Costs $ 1,118
Total Variable Costs 4.8
Breakeven Sales level = 1174
Breakeven Analysis
PS4 Gaming Console for year 1
All numbers in '000
Please check Appendix 2 for the template and calculation.

30
Cost Description Fixed Costs ($) Variable Costs (%)
Variable Costs
Cost of Goods Sold 165$ 30.0%
Inventory 675$ 70.0%
Raw Materials 390$ 80.0%
Direct Labor (Includes Payroll Taxes) 60$ 20.0%
Fixed Costs
Salaries (includes payroll taxes) 145$ 100.0%
Supplies 1$ 30.0%
Repairs & maintenance -$ 0.0%
Advertising 12$ 40.0%
Car, delivery and travel 6$ 10.0%
Accounting and legal 4$ 30.0%
Rent 7$ 25.0%
Telephone 5$ 6.0%
Utilities 1$ 9.0%
Insurance 6$ 10.0%
Taxes (Real estate, etc.) 5$ 12.0%
Interest 2$ 3.0%
Depreciation 15$ 50.0%
Postage 1$ 12.0%
Furniture and equipments 5$ 10.0%
Miscellaneous expenses 3$ 20.0%
Principal portion of debt payment -$ 0.0%
Owner's draw -$ 0.0%
Total Fixed Costs $ 1,508
Total Variable Costs 5.7
Breakeven Sales level = 1599
Breakeven Analysis
PS4 Gaming Console for year 2
All numbers in '000
For calculation please refer to Appendix 2.
C. Discussion on Financial implications
It is needed to assume that Xbox and Switch would continue for exclusively in the market as
the hard-core gamers Nintendo is willing to continue to have the sustainable competitive
advantage by making the improvements for both the hard-core as well as the fair weather
gamers which increases the pool for people who can consider as the use of game console
(Moravcsik, 2018).

31
Thus Nintendo wants a great success for asking everyone by considering Switch and Xbox as
the gaming console for choice. Nintendo thus requires building in the strategy in case of
segmenting as well as targeting the masses by creating a more personal connection.
It is also needed to take care that the game will be easier to kids in convincing mom by
considering the console where Nintendo would demonstrate much more benefits through
gaining the approval by the expensive toy, especially for kids and teens.

32
Overall Recommendation
A. Recommendation as per marketing plan
1. The awareness program should be followed as per low fact which would be as per low in
the new market of other third countries in the world.
2. Microsoft Xbox one has been released prior to the Nintendo Switch by six months ago in
order to conquer the market.
3. The price of the accessories should be within an affordable price.
4. It is needed to train the salesman as well as the product which is being sufficient.
5. It is needed to suit for older children as well as the adults for the graphic nature of the
games (Eckstein, 2018).
6. It is needed to provide the scope of the new business opportunities.
B. Recommendation as per SWOT analysis
1. It is recommended that to overcome the weakness in marketing companies can follow new
value chain strategy where it has been modified the processor of a gaming console.
2. It is also recommended that research team should work in order to elect the gaming
console compatible with moderate internet speed as well so that more number of viewers will
be attracted to have the gaming console of PS4(Shay & Palomba, 2018)

33
C. Recommendation as per marketing concepts and terms or
the information
1. It is needed to have more promotions as well as advertising in creating awareness for the
product. Mainly the mall promotions are being recommended through the dealers.
2. The salespeople are needed to be better trained for the product.
3. The pricing should be reconsidered as it will make the product more accessible for those
who are not interested in video games.
4. As brand loyalty always plays a significant role, so the companies are needed to look
within their aspect in better ways. The sales service and the customer retention strategies
would be better to look into it (Novak, 2016).
5. A number of educational games for the younger children and kids are needed to design as
it will be a good way to convince the parents to buy the product for their children. There
should be more games for the girls as well as families which will increase the purchasing
capacity.
Conclusion
From the above discussion, it is, therefore, can be found that the new gaming console of PS4
will be a highly speculated and it is said that there is even number of advanced and tech-
creative than the last. It also brings the new opportunity for Nintendo and Microsoft by
launching their new gaming products Switch and Xbox one for successful accomplishment
and thereby it will produce a high-quality product.

34
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Appendices
Appendix 1
For calculation of Proforma income statement please check the excel sheet attached here. The
formulas are embedded in the template itself.

37
Appendix 2
For calculation of Proforma break even analysis the excel sheets are attached here.