This section reviews the firm’s key target market and product category ‘Home Video Gaming console’ and assesses the two major competitors Sony PlayStation 4 is facing in the Gaming industry. In this respect, Microsoft Xbox One and Nintendo Wii are analyzed below.
A video game console is primarily designed for consumers to use for playing video games in contrast to arcade machines or home computers. Video games are a billion-dollar business and have been for many years. The most video game players are between the ages of 18 to 34, and average age is 34. More detailed distribution is shown as 49% between the ages of 18 to 49, 25% under age of 18, 26% are 50+. 60% of video game players are males.
Gamers are often divided into two categories: core and casual. A core gamer typically plays 20
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One of its flagship hardware products is the Xbox game console, eight generation of which, Xbox One, was released initially in end 2013 in North America, and then in September 2014 in other markets, including Europe, the Japanese market, and Middle Eastern markets. It is seen that Microsoft might have misunderstood its own loyal customer base. Rather than focus on video games, Microsoft chose instead to market the Xbox One as an all-purpose entertainment system for one’s living room, controlling TV, music and streaming services via its Kinect motion and voice sensor. This feature added an additional $100 to the Xbox’s price relative to the PlayStation—which is the single biggest factor in Microsoft’s lagging sales. The Xbox One initially retailed for $499 vs. $399 for the PS4. Xbox Kinect brought an additional $100 for functionality that many gamers didn’t need or want, while Sony focused its presentation on gaming (Sizemore,