Comparison of PS5 and Nintendo Switch Marketing Strategies

This report compares the marketing strategies of PlayStation 5 (PS5) and Nintendo Switch. It discusses their target audience, product analysis, pricing strategies, location and distribution, and promotion and advertising strategies. The report concludes by highlighting the differences in strategies adopted by both brands.

MG412-Principles of Marketing-BM-Sep23
Name-SILIP GABRIEL FLORIN
Student number- H2210748
Bucks ID Number-22204464
Lecturer-Baheer Peerzada
• Executive Summary............................................

• Introduction..............................................................
• Target Market Comparison.....................................
• Product Analysis.......................................................
• Pricing Strategies.....................................................
• Location and Distribution.......................................
• Promotion and Advertising Strategies..................
• Conclusion.................................................................
• References................................................................
1 Executive Summary: In this report, I will compare two of the most popular brands in
the video game industry, namely PlayStation 5 (PS5) and Nintendo Switch, in the
context of applying the 4Ps of marketing: Product, Price, Place, and Promotion. The
primary objective of this study was to illustrate how these brands select their target
audience and how they promote their products, as well as how they have configured
their marketing strategies.

2 Introduction: The PS5 is a video game console created by Sony Interactive
Entertainment and serves as the successor to their previous product, the PlayStation 4
(PS4). It comes in two models, one with the capability to accommodate physical discs,
while the other model lacks the disc drive to reduce production costs and subsequently
lower the selling price. However, it supports a digital unit for game downloads directly
onto the PlayStation gaming console.
The Nintendo Switch is a video game console created by Nintendo, and it is a hybrid
console that can function both as a traditional home console and as a portable gaming
device. Thanks to the detachable Joy-Con controllers that can be attached to either side
of the console, it can be used as a portable gaming console.
3 Comparison of Target Markets: The target audience for PlayStation 5 (PS5) is
composed of gamers seeking high-quality and immersive gaming experiences. Sony, the
manufacturer of PS5, focuses on a diverse range of ages, with a particular emphasis on
the demographic typically ranging from 18 to 35 years old. Gender distribution in this
segment is balanced, although the brand usually attracts slightly more male players. The
target audience has a moderate to elevated level of disposable income, as gaming
consoles and related accessories can be quite costly.
Regarding social class, it can vary, but the product is often positioned as a premium
gaming console, attracting consumers from middle to upper social classes. In terms of
education level, the target audience is diverse, encompassing individuals with high
school diplomas as well as those with higher education degrees.
The family life cycle can range from single individuals and young professionals to
families with children, as gaming appeals to a broad spectrum of consumers. Lifestyle
preferences within the target audience may vary, but they share a common interest in
gaming and technology.
Preferred brands in the gaming industry often include titles and gaming accessories
from Sony's own brand, which contributes to brand loyalty.
As for Nintendo Switch:
Nintendo Switch caters to a different segment of the gaming market compared to PS5.
The primary target group for Nintendo Switch covers a broader range of ages, from
young children to adults. This console is often preferred by families and casual gamers.
Gender distribution tends to be more balanced, with an emphasis on family-oriented
gaming experiences.
The required level of disposable income to purchase a Nintendo Switch is lower than
that of a PS5, making the Nintendo Switch more accessible to a wider range of
consumers. Social class within the target audience may include consumers from the
middle and upper-middle classes.

Education levels within the target audience also vary, but the emphasis is on
accessibility and ease of use. The family life cycle for Nintendo Switch users often
includes families with children or individuals seeking family-oriented gaming
experiences.
Lifestyle preferences of this target audience often revolve around family activities and
entertainment. Nintendo has built a reputation for fun and family-oriented games.
Preferred brands within this target audience often include Nintendo's gaming titles and
accessories, along with other family-oriented brands.
4 Product:
Nintendo Switch: Like most modern consoles, the Nintendo Switch features an
unassuming design comprised of rectangles intermingled with a few subtle curves, all
constructed from matte plastics. Users have the option to choose the Neon colour
variant, which includes blue and red Joy-Con controllers, adding a touch of individuality
to the console, or the plain all-grey version that imparts a more cohesive appearance. In
either case, the focal point of the Switch is a Gray rectangular frame with the display
screen embedded within.
PlayStation 5: the gaming console commands a striking presence, characterized by a
substantial and distinctive form, adorned with metallic accents and an array of LED
lights. Noteworthy details include a black casing, augmented by contrasting elements
and luminous intricacies that collectively impart a robust visual character.
Price - Evaluation of the Pricing Strategies Used: Decisions regarding purchasing are
frequently directly swayed by tariffs, a pivotal component within the marketing mix. In
January, merchants entice customers with advantageous purchasing opportunities as
part of their reduction strategies. Adjustments in tariff structures for various products
commonly feature as news highlights, spotlighting significant alterations either
announced by companies or compelled by market conditions.
(BBC Bitesize. (n.d.). Price - Price - Higher Business management Revision)
Playstation5: The intricate understanding of the market and its dynamics enables
PlayStation to maximize profits by carefully adjusting tariffs according to the financial
capacities of consumers. Through the implementation of a differentiated strategy, the
company successfully maintains its market leadership, positioning its products at
higher tariff levels, with slight differentiations compared to competitors. In 2021, the
PS5 was globally launched at prices of $500 for the base version and $400 for the digital
edition. The quality of games is a determining factor in tariff variations, with criteria
such as processing power and graphic performance directly influencing costs. The
luxurious approach of PlayStation's pricing strategy adapts to the intense competition

in the industry, dominated by Sony, Microsoft, and Nintendo. (Mbaskool.com. (2019).
MBA Skool.)
Place - Distribution of the Brands
Playstation5: Retail electronics stores that display Sony products, particularly
PlayStations, represent another crucial distribution channel. Although the discounts in
online and Sony stores do not differ significantly, consumers lean towards purchasing
PlayStations from physical Sony outlets.
Additionally, PlayStation products are available for online purchase on platforms like
Amazon, eBay, and Flipkart. Here, customers can explore not only PlayStation items but
also other Sony products, thereby enhancing their overall experience under the
PlayStation brand.
(Mbaskool.com. (2019). MBA Skool.)
Nintendo Switch: Nintendo's Distribution Network:
To provide consumers with easy access to products, Nintendo implements an extensive
global distribution network. This initiative covers both physical and online distribution
through various channels, ensuring reach to a diverse audience.
Sale of Used Items: The expansion of distribution also includes the offering of used
products on online platforms such as eBay.com. This initiative complements Nintendo's
presence in the digital space.
Online Distribution: Nintendo brings products directly to users through online
distribution. Essential features include software downloads and updates. Online retail
sites like e-shop, amazon.com, and Best Buy contribute to reaching an extensive digital
audience.
Physical Distribution: To ensure availability in physical stores, including Walmart and
Game Planet, Nintendo relies on an extensive distribution network. This effort covers
both gaming consoles and gadgets like the Nintendo Switch.
This well-structured approach adapts to the varied demands of consumers, providing
them with a convenient and accessible experience with Nintendo products.
(Mbaskool.com. (2019). MBA Skool.)
Nintendo Promotion & Advertising Strategy:
Special Events and Launches:
Distinct product launch strategy. Dedicated events and special days for promotion.
Invitations for direct consumer participation. Experiential Promotion:
Offering complimentary gifts: console cases, T-shirts. Emphasis on creating memorable
experiences. Attractive Launch Campaigns:
Elaborate, captivating, and memorable campaigns. Significant impact on audience
attention. Concrete Example:

During the launch of the 3DS, the 3D video 'Believe Your Eyes' captivated 85% of the
United Kingdom's population. Reputation Built Through Innovation and Distinctive
Advertising:
Nintendo not only innovates in products but also in advertising strategies. Contributes
to the effective shaping of their marketing mix.
(Mbaskool.com. (2019). MBA Skool.)
PlayStation Promotion & Advertising Strategy:
Substantial Investments:
PlayStation allocates a massive portion of its revenue to promotional activities,
reflecting a comprehensive strategic approach.
Memorable Campaigns:
PlayStation distinguishes itself through numerous elaborate campaigns, emphasizing
extensive promotion within the gaming community.
The key slogan, "Play has no limits," underscores the commitment to positioning as a
fundamental gaming product.
Distinctive Slogans:
Various slogans, such as "eNoS Lives," "The Ultimate Just Got Power," "It only does
everything," "Move into the action," contribute to shaping the distinctive identity of
PlayStation.
Participation in Global Exhibitions:
PlayStation actively engages in major exhibitions, like the Electronic Entertainment
Expo, to display current and upcoming products.
These exhibitions provide strategic platforms for extended exposure and product
promotion within the gaming community.
Effective TV Advertising:
The intensive use of television advertisements is another crucial aspect of the
PlayStation promotion strategy.
(Mbaskool.com. (2019). MBA Skool.)
Conclusion:
In conclusion, PlayStation 5 (PS5) and Nintendo Switch adopt different strategies to
attract distinct audiences. PS5 focuses on a mature and passionate gaming segment,
promoting its products as premium, while Nintendo Switch targets a broader audience,
emphasizing family gaming experiences. Both brands build strong identities through
design, pricing, and promotional tactics, successfully adapting to the diversity of the
gaming market.

REFERENCE: BBC Bitesize. (n.d.). Price - Price - Higher Business management Revision.
[online] Available at: https://www.bbc.co.uk/bitesize/guides/zdx92sg/revision/1.
Mintel (2022). Mintel: Global Market Research & Market Insight. [online] Mintel. Available
at: https://www.mintel.com/. Tom’s Guide. (n.d.). Tom’s Guide | Tech Product Reviews, Top
Picks and How to. [online] Available at: https://www.tomsguide.com/uk [Accessed 11 Nov.
2023]. Mbaskool.com. (2019). MBA Skool. [online] Available at:
https://www.mbaskool.com/ [Accessed 10 Nov. 2023].