Marketing Strategies Comparison: PlayStation 4 vs. Nintendo Switch

This report provides a comparative analysis of the marketing strategies employed by PlayStation 4 and Nintendo Switch, two major players in the gaming console market. It examines their respective target markets, highlighting demographic, geographic, and psychographic segmentation approaches. The analysis delves into the marketing mix of each brand, including product offerings, pricing strategies, distribution channels, and promotional activities. The report finds that Nintendo, with its focus on casual gamers and understanding of customer behavior, currently holds a stronger market position than PlayStation. The report offers recommendations for PlayStation, suggesting improvements in customer engagement, product value, and promotional techniques, particularly in the US market. The report concludes by emphasizing the importance of understanding customer behavior and adapting marketing strategies to maintain competitiveness in the dynamic gaming industry.

Running Head: Marketing Management
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Marketing Management
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Executive Summary
The below mentioned report provided a critical comparative analysis of PlayStation 4 Game
Console and Nintendo Switch Game Console. Both the companies are tough competitor of
each other. After analysis of the paper, it was found out the Nintendo is working more
effectively in the worldwide environment because it has understood the behavior of the
customers while PlayStation is falling behind. The recommendations would help PlayStation
to be recognized in the competitive environment and increase its sales as well. On one hand,
Nintendo targets casual players while on the other hand, PlayStation targets hardcore players,
therefore, the marketing ads of the companies would be performed differently.

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Contents
Introduction................................................................................................................................3
Findings......................................................................................................................................3
Comparison of Target Market................................................................................................3
Marketing Mix of Brands.......................................................................................................5
Product...............................................................................................................................5
Price....................................................................................................................................5
Place...................................................................................................................................6
Promotion...........................................................................................................................6
Conclusion and Recommendation..............................................................................................7
References..................................................................................................................................8

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Introduction
The purpose of this paper is to enlighten the reader with the details about the comparative
analysis between two organizations. PlayStation 4 Game Console and Nintendo Switch Game
Console are the two organization who are being evaluated in the below mentioned report.
Target market of both the organizations is analysed along with the marketing mix activities
implemented by both the companies. It should be noted that the objective of comparative
analysis is to have an idea about the strategies implemented by both the organizations
differently and the customers captured by them in the market. More details about the
functions of the organization are mentioned below:
Findings
Comparison of Target Market
The fact should be noted that as both the organizations are present in same industry therefore,
their target market is also almost same. The gaming industry is billion dollar industry because
people are crazy fans of playing games in their past time. Irrespective of any age group,
people love playing games when they are free. Therefore, the organization initiate the
segmentation and targeting strategies accordingly that attract the younger as well as middle
age group in the environment (Le 2018).
On the basis of demographic segmentation, it should be noted that the company PlayStation 4
Game Console targets the people belonging to younger age group starting from 10 years
ending at 30 years of male. While in the case of Nintendo Switch Game Console, the
company starts targeting people from age group of 15 to 45 years of male and 20 to 30 years
of female. The company targets the people having adequate income that belongs to middle or
high income level segment (Wesley, and Barczak 2016).

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Further, on the basis of geographic segmentation, the company targets the people present in
worldwide environment. However, both the organizations majorly focuses on attracting the
interest of customer living in US because US has the biggest gaming market in the world.
Thirdly, on the basis of behavioural and psychographic segmentation, both the organization
focuses on targeting people who love playing games and have a passion for it. The
organization Nintendo Switch Game Console attracts people who like using technology and
upgrading it regular. While, PlayStation focuses on attracting people in the environment who
love getting amazing visuals were playing games. Lastly, both the organization targets the
customers who show loyalty towards the brands in the environment (Kutaragi 2018).
Therefore, it should be noted that both the companies target people of younger as well as
older age group in the environment. However, the selection of the product entirely depends
on the discretion of the customers. As the gaming console are a part of passion and fun
activity of the customer, therefore, they have differential preferences for the selection of the
products. However, it should be noted that both the organization targets people who are a
regular player and show loyalty towards the brand in the environment (Ali 2017).
The target market of both the organizations is almost similar that increase their level of
competition in the environment. Further, it should be noted that positioning of the business
refers to the place that the customers give to the organization in the business environment for
the products and services provided by them. This positioning defines the brand image of the
company in the international environment (Jin 2017). The positioning of Nintendo Switch
Game Console is slight higher than PlayStation which means that the customers believe that
Nintendo is a better brand than PlayStation. However, both the organization appears under
the high quality and average pricing segment in the environment. Due to the significant brand
image of Nintendo, the company is able to target the customers in a better way than

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compared to than PlayStation in the competitive environment. The company has understood
the behaviour of the customers due to which, they have gained an extra edge in targeting
customers in the business environment (D'Angelo 2018).
Marketing Mix of Brands
Product
Both the organization provides differential gaming console in the environment based on the
interest level of their target customers. The company Nintendo provide products and services
in the environment with an impression of keeping the classics in mind while providing the
games induced with high technology as well. While on the other hand, PlayStation is a
dedicated game console that provide hardcore products to the customers in the environment
like Call of Duty, FIFA etc. (Ziesak, and Barsch 2019). PlayStation provides the products that
are usually male biased and are typical as well. Nintendo products are induced with
technology and are easy to play for the customers as well. On the basis of target segment,
both the companies introduces games differently. Like Nintendo targets both male and female
in the society, therefore the company produce games that can be played by both of them.
While on the other hand, PlayStation mainly targets male, therefore, their games have high
complexity level and interests to men only (Chess, Evans, and Baines 2017).
Price
The pricing of such gaming console are kept at a moderate level that a person belonging to
middle income level could afford it. It should be noted that both the companies make use of
competitive pricing strategy in the environment. The gaming industry has a bandwidth under
which these companies set their pricing based on the pricing strategy of competitors as well.
However, both the organizations introduce the products at high rates in the environment and
then slowly reduce it with time so as to maintain competitiveness of the new products in the
environment and increase it differentiation as well. Competitive pricing strategy helps both

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the organizations to closely monitor the pricing strategy of the competitors and then perform
actions accordingly in order to achieve revenue for the business. However, Nintendo lays
comparatively low pricing in the environment because they attract casual players while
PlayStation attracts hardcore players in the business environment (Palomba 2016).
Place
The place strategy explains that both the organization are present in the worldwide
environment. The companies mainly targets the prospective people present in the US
environment. It is an undeniable fact that both the organizations make use of great
distribution and supply chain strategies in the environment. As the companies are directly
connected with technology, therefore, they induce technology in the distribution strategy to
manage the timely supply of goods in the environment. Both the companies also sell their
products through retail chains like Walmart, Tesco etc. These organizations significantly
helps the organization in making the products available in the market and delivering it to the
customers as well (Arruda Filho, and Gammarano 2018).
Promotion
Both the organizations hold a huge fan base in their respective markets. The companies have
attained a stable brand image in the market due to which customers come to purchase the
products just by looking at the brand name only. This means that the organization has created
loyalty in the environment (Sargent, Kreiselman, and Peters 2019). However, it should be
noted that Nintendo perform both offline and online promotion while PlayStation lays main
focus on online promotion only. It should be noted that Nintendo runs ad campaign, provide
printed t-shirts to customers and perform online marketing. While, PlayStation only run
online campaign to attract customers to initiate sales and let them know about the new
products present in the environment. Nintendo is able to target the right customers in right

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manner by providing them discounts and offers as well. While, PlayStation does not believe
in providing offers to the customers in the market (Yamaguchi, et. al., 2017).
Conclusion and Recommendation
Thus, in the limelight of above mentioned events, the fact should be noted that the paper
highlighted information about the comparative analysis of the organizations PlayStation 4
Game Console and Nintendo Switch Game Console. Both the companies are big shots of the
gaming industry. However, after the comparatively analysis, it was found out that Nintendo is
leading the market as compared to PlayStation. Thus, it is recommended to the organization
PlayStation that they need to adequately capture the interest of customers present in the
worldwide environment. As the company targets hardcore gamers, therefore, they need to
offer such value to the customers that they involve in the products regularly and purchase
more as well. The organization need to understand the behaviour of the customers, then only
they would be able to effective target the customers. Also, the company should invest in
offline promotion techniques. They should start offline promotion from US because it is the
most prospective location for the organization as there are large number of buyers present in
that industry.

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References
Ali, W., 2017. Evolution of the Video Game Market. Journal of Game, Game Art, and
Gamification (JGGAG), 1(1), p.34.
Arruda Filho, E.J.M. and Gammarano, I.D.J.L.P., 2018. For every “game over” there is a
“play again”: Analysis of user preferences regarding 7th-and 8th-generation video games
consoles. The Journal of High Technology Management Research, 29(1), pp.46-56.
Chess, S., Evans, N.J. and Baines, J.J., 2017. What does a gamer look like? Video games,
advertising, and diversity. Television & New Media, 18(1), pp.37-57.
D'Angelo, L., 2018. Videogames and isolation: the Galapagos effect in the videogame
market (Bachelor's thesis, Università Ca'Foscari Venezia).
Jin, D.Y., 2017. The emergence of asian mobile games: definitions, industries, and
trajectories. Mobile Gaming in Asia: Politics, Culture and Emerging Technologies, pp.3-20.
Kutaragi, K., 2018. PlayStation: Early Efforts in the Creation and Development of the Digital
Entertainment Market. REPLAYING JAPAN, pp.53-59.
Le, H.T.N., 2018. Nintendo vs. Its Competitors in Marketing Efforts: From the Point of View
of Customers.
Palomba, A., 2016. Brand Personalities of Video Game Consoles. American Communication
Journal, 18(1).
Sargent, A.L., Kreiselman, J. and Peters, R.C., 2019. WPI’s Gordon Library Video Game
Archive Collection and Use Pertaining to the Nintendo Entertainment System.
Wesley, D. and Barczak, G., 2016. Innovation and marketing in the video game industry:
avoiding the performance trap. CRC Press.

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Yamaguchi, S., Iyanaga, K., Sakaguchi, H. and Tanaka, T., 2017. The Substitution Effect of
Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game
Industry. The Review of Socionetwork Strategies, 11(2), pp.95-110.
Ziesak, J. and Barsch, T., 2019. Analysis: How Nintendo Created a New Market through the
Strategic Innovation Wii. In Die Blue-Ocean-Strategie in Theorie und Praxis (pp. 299-326).
Springer Gabler, Wiesbaden.