Sony Eyetoy

In: Business and Management

Submitted By msliu
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Q1: Is EyeToy an important product for Sony? What role does EyeToy play within Sony Computer Entertainment Europe’s (SCEE) strategic objectives?

Yes, it is an important product for Sony as Games generated 97% of operating income (Exhibit 2. Game US$939mn / Net income US$963mn among the entire business segment.)

In 2003, SCEE accounted for 13% of the nearly 650 PlayStation2 titles and 26% of the more than 120 million Play Station 2 software units produced.

Revitalize Play Station’s growth momentum which was declining in production and shipment since 1997-1999 peak sales volume

EyeToy Play is reflecting SCEI’s core mission of creating “a new form of entertainment beyond games” via the integration of innovative computer technology with digital audiovisual technology. It drove the software and hardware along with interacting with players and game objects on display. Electronic is the Cash Cow of SONY which enjoyed >50% profit pool worldwide in high-end game segment.

EyeToy Play achieved and promoted the strategic objectives of SCEE: Be the FIRST and the BEST: Technology leadership Pricing leadership Marketing leadership

Q2: Although sales figures for EyeToy Play have been impressive, those for EyeToy Groove have been disappointing. What are reasons for Play’s phenomenal success—and Groove’s failure to emulate Play’s performance? Why?

Discussing from point view of “4P” and “ Customer” of marketing strategy:

Product: Bundling strategy as EyeToy Groove had been sold as software only and it didn’t sell with the camera, and that may have been a mistake.

Pricing:. The cost for choosing licensed music is high for EyeToy Groove buying Groove for €40 for one game only but buying Play with a collection of 12 games plus a camera for just only €60(not so cost worth).…...

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