There is much competition for market share in the $93 billion per year video game console industry.Relating to our discussions on brand positioning, Sony is attempting to position it’s new Playstation 4 as the leading gaming console by releasing it before the new Microsoft Xbox console, and thereby being first to the market place. As noted in class, in an effort to increase market share, it is better to be first in launching a product, rather than spend time improving it prior to release. Being first helps to establish leadership, and that can be difficult for competitors arriving later to assume. The music for their advertising campaign is the song “Perfect Day” which implies that using the Playstation is “perfect. The point of parity is that like its competitors, Playstation provides entertainment; however, they are establishing a point of difference by providing cutting edge processor speed and graphics, but at a price point $100 cheaper than Microsoft. The cheaper price and being first to the market give Sony an advantage over Mircrosoft. As analyst Michael Patcher states, “A 20 percent price difference means 20 percent higher sales, plain and simple,”.
http://www.bloomberg.com/news/2013-11-15/sony-channels-lou-reed-seeking-hitch-free-playstation-4-debut.html