Right before Christmas my significant other was able to obtain a coveted Sony PlayStation 5 (PS5). This development has led to many late nights of playing games, and much less schoolwork being completed in a timely manner. Though we have had a lot of fun playing video games and becoming completely absorbed into immersive worlds, we have often lost track of time, and forgotten to take proper care of ourselves. We’ve eaten meals way later than usual, become dehydrated, and totally blown our step counts for the day.
These issues are not unique to me and often plague many video game players. As the chief innovation officer at Sony, this problem has led me to consider some technological improvements to gaming systems. The PS5 controller is comfortable to hold for long periods of time, the buttons are soft and springy, and it features haptic feedback for a more immersive experience. But could it do more? I believe it can!
By incorporating biometric sensors into the PS5 controllers, users can monitor hydration levels, heart rate, body temperature, and oxygen levels. The system will also remind users to take hydration breaks or stretch and include options that lock down the system until certain qualifications are met. Additionally, these sensors will improve the gaming experience by tailoring gameplay to each player’s unique vitals.
Value Proposition
The Sony Corporation (or Sony) is the parent company of Sony Interactive Entertainment, which produces the PS5. According to MarketLine (2021) Sony Corporation (Sony or ‘the group’) is a designer, developer, manufacturer, and marketer of audio, video, imaging, game, communications, and information technology products.” Sony makes high-quality electronics and multiple forms of entertainment. Sony is a leading innovator, bringing value to customers through their products, extensive research, and development of new technology.
Profitability
Sony is a very profitable company. Since the launch of the PS5 in November of 2020 its financial strength has significantly increased. The net profit margin increased from 7.05% in March 2020 to 13.02% in March 2021. That is a 5.97% increase doubling net profits. Total Revenue has increased from 75.9 billion to 84.9 billion, an unfathomable number, since the launch of the PS5 (D & B Hoovers, 2022).
SWOT Analysis (D & B Hoovers, 2021)
Strengths
According to Forbes (2020), Sony is considered one of the most valuable brands in the world, ranking as number 47 out of the 100 most valuable brands. Additionally, SONY is ranked as a best Japanese global brand, a top 50 most innovative brand, a 100 most powerful brand, and many more top accolades (SyncForce, 2022).
Sony is also highly innovative, concentrating on research and development. Firm data analytics company D & B Hoovers (2021) states “In FY2021, the company incurred expenses of JPY525,175 million on R&D, which as a percentage of revenue, stood at 5.8%.” Sony is highly competitive with locations in many different countries and works in tandem with many companies located around the globe (D & B Hoovers, 2021). This puts SONY in a unique position to develop the technology needed as well as to implement it into an already wildly successful product like the PS5.
Product or Service Singularity
Though biometric meters already exist for home consumption like those found in smartwatches and smartphones, nothing exists on the market that integrates these metrics with gameplay. This addition would position Sony on the bleeding edge of technology, creating not only a competitive advantage but also opening an entirely new market. No other video game platforms offer this service and integrating biometric feedback into the PlayStation platform creates opportunities for other developers to create content that utilizes this technology.
New product or service projections
Trend forecasts state that video gaming has made substantial gains lately, garnering over 155 billion in revenue in 2020, and is expected to grow to 260 billion in revenue by 2025, industry-wide (Beattie, 2022). A significant change in the market like rising gaming popularity presents many new opportunities for Sony. Additionally, sensors could impact future entertainment and healthcare applications within the contemporary metaverse.
One of the leading consumer-grade, bioelectric medical tracking device producers is Fitbit Inc. (Fitbit). Fitbit’s 2020 annual revenue was roughly $1.3 billion (Mergent Online, 2020). Sony isn’t trying to compete directly with Fitbit, but Sony could capture a small portion of Fitbit’s market through a new integrative product. Theoretically, a match of even just 5% of Fitbit’s revenue, would equal $65.8 million in additional revenue for Sony.
References
Beattie, A. (2022, February 8). How the video game industry is changing. Investopedia. Retrieved March 3, 2022, from https://www.investopedia.com/articles/investing/053115/how-video-game-industry-changing.asp
D & B Hoovers. (2021,). SONY SWOT Analysis. D&B hoovers – login. Retrieved March 6, 2022, from https://app.avention.com/company/68e6c845-457b-3c44-9051-e05f20a1ccac
D & B Hoovers. (2022). Sony Financials. D&B hoovers – login. Retrieved March 6, 2022, from https://app.avention.com/contact/99060f51-f10c-3cb3-b2f6-b89e81b0b995
MarketLine. (2021, September 30). Sony Corporation SWOT Analysis. MarketLine.
Mergent Online. (2020). Www.mergentonline.com.ezproxy.snhu.edu. Mergent Online – FitBit. Retrieved March 6, 2022, from http://www.mergentonline.com.ezproxy.snhu.edu/companydetail.php?compnumber=886 SyncForce. (2022). Ranking per brand. Sony Brand Ranking | All Brand Rankings where Sony is listed! Retrieved March 3, 2022, from https://www.rankingthebrands.com/Brand-detail.aspx?brandID=127
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