Sony Playstation and PESTEL Analysis Essay

Excerpt from Essay :

Kutagari's fervor did not impede him from researching potential of market for his idea -- another mark of the succesful entrepeneur. His persistence, belief in his work, tenacity, and originality led to the hugely popular Playstation that launched in December 1994 (Edge Staff, 2009).

Kutagari, in other words, epitomized all that innovation requires. Firstly he chose an article that possessed the four qualities of 'opportunity':

(2) Opportunity is attractive -- Playstation is attractive to users in that it offers entertainment and laughs -- always an attractive commodity (2) Opportunity is durable -- Playstation is here to stay as evidenced by its string of successors and continuing stream of success (3) Opportunity is timely -- Kutagari realized that Internet and computer was coming into its own and that video games may well be the fad of the future. He was correct. (4) Opportunity is anchored in a product, service, or business that creates or adds value for its buyer or end-user -- Playstation certainly provided benefits to its users in that it provided entertainment value and interest.

The product, therefore, provided one dynamic of the conditions for 'innovation'; but for innovation to succeed it needed the qualities of the creator and here is where Kutagari accomplished the other requirements in that he displayed the necessary tenacity and perseverance. Time and again despite setbacks and discouragement, Kutagari forged ahead with his idea. He had belief and confidence, too, in his creation, proceeding despite disapproval from his superiors and continuing even when he had to go it alone. Eventually, it took Sony to break off from Nintendo to accomplish the project, but the product idea, development, and eventual marketing only came to fruition through the genius of Kutagari.

'Innovation' fulfills a need, but it takes the genius of an individual to recognize this need and special tenacity and particular characteristics to persevere despite all discouragement (Lei, 2003).

The key marketing features were the attraction of online games and DVD. In fact, online entertainment in its various forms. This is what helped Sony Playstation stand out from its competitors and is attested to in reviews on Sony's Playstation that included the following:

"PlayStation re-ignited our imagination with video games" (Dr. Jeffrey Brand, associate professor in communication and media at Bond University). Game designers Yoshiki Okamoto called the brand "revolutionary -- PlayStation has changed gaming, distribution, sales, image and more," whilst Evan Wells of Naughty Dog opined that "PlayStation is responsible for making playing games cool." (Tretton, 2009)

All of those aspects lauded by the reviews cited above were the key marketing features, concepts and factors of Playstation's innovation that made it stand out from its competitors to the extent that in 2010, Gizmodo qualified PlayStation unique, stating that "If you ask the average person on the street what their favorite Sony product is, more often than not you'll hear PlayStation." (Johnson, 2010)

Many see Sony's success and niche as consisting of the fact that their technologies are 'future-proof' with their products beign superior to those of the competitors (specifically Nintendo and Microsoft) and to their games characterizing the latest technology on the market. Here too is where we see the aspect of 'innovation' in that not only is there a different idea but this idea constantly seeks to keep ahead of competitors that imitate the idea, by arduously and tirelessly keeping itself on edge.

Even today, despite the recession, studies show that the PlayStation brand is the "most followed" brand on social networking site. Facebook, for instance, shows that Playstation has over 11 million fans - far more than any other brand in the entertainment industry. Finally, Greenlight's Entertainment Retail shows the PlayStation brand to be the most interactive making 634 posts and tweets on the social networking sites of Facebook and Twitter (Woollaston, 2010). That this occurred is due to the various factors that consituted innovation not least originality and perseverence of founder, differentiation of marketign features, and timeliness of idea.

Innovative products succeed through their innovation and differentness and through the qualities of its creator. Sony's PlayStation indicates those characteristics.


Barney, J (1997) Gaining and Sustaining Competitive Advantage. Reading,

MA: Addison-Wesley.

Bensen, S. & Farrell, J. (1994) Choosing how to compete: Strategies and tactics in standardization, J. Econ. Perspectives, vol. 8, no. 2, pp. 117 -- 131,

Chakravoti, B. (2003) The new rules for bringing innovations to market Harvard Business Review,%20The%20(HBR).pdf

Gallagher S. & Park, SH (2002) Innovation and Competition in Standard-Based Industries: A Historical Analysis of the U.S. Home Video Game Market IeeeTtransactions on engineering management, 49,

Goosen, RJ (2008) E-preneur. USA: Career Press

Lei, D. (2003)Competition, cooperation and learning: the new dynamics of strategy and organisation design for the innovation net International Journal of Technology Management

Sony (January 27, 2011.) Over 69 Million PlayStation Network Accounts. TheSixthAxis.

Edge Staff (April 24, 2009). The Making Of: PlayStation. Edge Online. Edge Magazine. (2011) Sony's PlayStation Vita sales drop 78% after second week on shelves

Techspot (2011) Sony faces legal issues over crashing PS3 firmware

Tretton, J. (October 19, 2009). Welcome to the PlayStation Nation. PlayStation Blog.

Utterback, JM (1994) Mastering the Dynamics of Innovation. Boston, MA:

Harvard Bus. School Press,

ViTrue Staff. The Vitrue 100: Top Social Brands of 2009. ViTrue, Inc..

Johnson, J. (March 5, 2010). The Return of Sony.


Sheremeta, WA (2004)Competing through innovation in network markets: Strategies for challengers The Academy of Management Review, 8, 24, 25-31.

Woollaston, V. (June 30, 2010). PlayStation 'most followed' brand on social sites.…

Cite This Essay:

"Sony Playstation And PESTEL Analysis" (2012, January 10) Retrieved August 18, 2017, from

"Sony Playstation And PESTEL Analysis" 10 January 2012. Web.18 August. 2017. <>

"Sony Playstation And PESTEL Analysis", 10 January 2012, Accessed.18 August. 2017,