Innovation and New Product Development Case Study

Playstation Portable: The Walkman of the 21st Century

OR

Abstract:
This case describes Sony Corporation’s (Sony) entry into the handheld gaming market in 2004 with the launch of the Playstation Portable (PSP). It discusses in depth the strategy used by Sony to gain market share from its chief rival Nintendo which had dominated the handheld market with its GameBoy series since 1998. The case also talks about Sony’s attempt to create an “all-in-one” entertainment device, with the PSP capable of playing games, music and movies to compete against convergence devices like the Apple’s iPod music player. The case ends with the challenges that Sony might face in attracting non-gamers to a gaming device.

Pedagogical Objectives:

• To discuss about the gaming industry in Japan
• To understand the strategies adopted by Sony.

Keywords : Multiplayer gaming; Innovation Management Case Study; Memory Stick; Gaming; Handheld Gaming Machine; Playstation; LCD Screen; Innovation; Marketing

Contents:

• Introduction
• Entry into the Gaming Arena
• PSP: Changing the Rules of the Game
• Making of the PSP
• Developing the Games
• The PSP Marketing Campaign
• Challenges Ahead