Question

How are the strategies of Sony PlayStation and Nintendo different from each other? (Are they different? Or are they not different?)

Refer from the:

Nintendo:

https://professornerdster.com/nintendo-business-strategy-analysis-2017-beyond/

Sony:

https://www.dualshockers.com/sony-explains-strategy-and-investment-for-playstation-business-driven-by-ps4-and-playstation-network/

Answer 1

Ans:

Yes, the strategies of Sony PlayStation and Nintendo are different from each other even though both are in gaming business:

Strategies of Sony Playstation:

1. The first and the major strategy of Sony PlayStation is the pricing strategy. Playstation’s pricing strategy is very much like their competitor’s pricing strategies for example Nintendo.To maintain its leading position Sony is decreasing the price of its PlayStation, improving its content and spending a significant amount on marketing to boost adoption.
2. Sony aims to solidify the competitive advantage of the PS4 by supporting third party publishers and developers, reducing the production costs of the hardware, adding more features to the product.
3. Profit maximization strategy: Since PlayStation is a oligopoly market structure, they participate in product differentiation methods to increase profits. Product differentiation is how different companies compete against each other using different tactics besides price to distinguish themselves apart from the rest.

Strategies of Nintendo:

1. Nintendo's main objective is not pricing strategy instead they are focused on expansion strategy. Nintendo hopes to expand the company by investing more in the video game and smart device sector.
2. Nintendo's pricing strategy: Nintendo switched to lower price after Sony and Microsoft launched its Xbox and Playstation products at higher price. This difference in pricing plays a huge role in bringing the customer base towards Nintendo and away from the competitors.
3. Undoubtedly, Sony's and Microsoft strategy will be highly profitable but will they will not be able to compete directly with Nintendo without alienating their existing customer base.

Attractiveness of Nintendo is much higher than Sony Playstation

While Nintendo and Sony are in the same field, and constantly take up the same space they both were able to find a unique touch to stay relevant and have their newest platforms stay at a competitive level.