Presentation to Sony PS3 executives highlighting a multi-faceted approach for revitalizing the Playstation 3 console.

1. Cacchiotti Consulting Group
Bogdan, Lauren, Alicia, Jeffrey, Cassandra, Curtis
March 13th, 2009

2. Strengths
 Power
• The Cell Processor versus
the Xenos Processor
 Unique Technology
• Backwards Compatability
• PSP Connectivity
• High Definiton Optical Disc
Format
• Blu-ray player
• Wi-fi and built-in internet
 Brand Loyalty
• PS2 sales surpass XBOX
sales

3. Weaknesses
High price relative to other gaming systems

 Playstation Network still playing catch-up with
Xbox Live
 Lack of 3rd party exclusive games
 Ahead of its time
Playstation 3 Wii
System $399.99 $249.99
Games $59.99 $39.99-49.99
Controllers $54.99 $39.99
Source: iSupply

4. Opportunities
International World Market
Online Service
•Worldwide Sales figures
•Play your own Music
•Canada: 520,000
•Download few things
•Japan: 2,664,366
at once
•United Kingdom: 1.9 million
•Video chat
•United States: 5.7 million
•Launch a game
Netflix
Increase Language
• Increasing number of
Support
people staying home
• About 16 languages
• Success of Netflix
• Arabic
• Success of Xbox live with
Netflix

5. Production Cost Production Cost
$448.73 $158
-$48.74 +$91.99
Sale Price Sale Price
$399.99 $249.99
Source: iSupply, Manufacturers

6. Console Usage < 18 Year Olds
Wii [58.3%]
XBOX 360 [42.2%]
PS3 [31.2%]
Source: http://www.hardcoreware.net/

7. Lowering MSRP
Older game systems very
Back to basics
Take out blu-ray player
successful

8. Increase Game Developers
 Problem: games made for
XBOX, not PS3
• time release
• programming/
development challenges
 Solution
• utilize hardware capability
• reduce development
obstacles
• decrease cost of
developing for Sony (lower
cost of entry)
• re-release of PS3

9. Recommended Strategy
Family-centered games

 Increased functionality
 International marketing

10. Grand Turismo Series
Sales, millions of units

PS3, 2.37
PS One, 10.85
PS2, 9.53
PS One, 9.37
Source: Sony

11. N64 vs. Wii
Game sales in millions of units

Mario Party
Super Smash Bros.
Wii
Zelda N64
Mario Kart
0 5 10 15
Source: Sony, Nintendo

12. Projected PS3 Sales
Wii’s 182% of 5th generation console game sales projected to PS3
Raymond
Crash Bandicoot 3
Projected PS3
PS One
Crash Bandicoot
Final Fantasy 7
Sales of
games, millions of
units
0 5 10 15 20
Source: Sony

13. Projected PS3 vs. Wii for Classic Games
4
3
Wii
Projected PS3
2
1
Sales of
0 5 10 15 20 games, millions of
units
Source: Sony, Nintendo

14. All-in-one Entertainment Package
Video game console

Blu-ray player

Netflix

Hulu

Enhance Internet capability

http://www.pcworld.com/

15. PS3: Working Towards a Greener
Tomorrow
Reducing chipset by 20% from

90nm to 65nm
 Results will cut energy use from
200 watts to 135 watts
 New aluminum cooling plates
further reduce to 120 watts
 Has the potential of using less
energy by people taking
advantage of there standby
sensor that shuts down the
console when inactive Source: Sony

16. Marketing Strategy
Then Focus on Western USA
1st, focus on Japan andEurope
USA: High consumption rate
Japan: Huge market for
of DVR, Video Games, Netflix
electronics and video games
Home Entertainment System
Will make PS3 Appealing in
many wealthy countries

17. 5 Year Plan
2009 2010 2011 2012 2013
Diversify Game Offerings
Games
Increase Backwards Compatibility
Media-
Add Hulu, Netflix Support
Center
Focus on Japan, US
Focus on W. Europe
Marketing
UK Olympics 2012

18. Mission Statement
Improving families’ home entertainment
experience by providing a cost-
effective, environmentally friendly, and all-in-
one solution

19. Reasoning
Current economy

◦ Movie watching coming home
◦ Refocus on family time
 Center around PS3
◦ Broad HDTV adoption
 Consumers ready to embrace HD
 Only console with Blu-ray, 1080P
◦ All without decreasing revenues