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Porter’s Five Forces

Suppliers. New Entrants. Industry Competitors. Substitutes. Buyers. Porter’s Five Forces. Industry Competitors. PlayStation 2. GameCube. Xbox. Processor. 128-bit “Emotion Engine” 300MHz, FPU co-processor, max bus transfer rate 3.2GB/s.

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Porter’s Five Forces

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  1. Suppliers New Entrants Industry Competitors Substitutes Buyers Porter’s Five Forces

  2. Industry Competitors

  3. PlayStation 2 GameCube Xbox Processor 128-bit “Emotion Engine” 300MHz, FPU co-processor, max bus transfer rate 3.2GB/s IBM PowerPC “Gekko” 485MHz, max bus transfer rate 2.6GB/s Intel Pentium III 733MHz, max bus transfer rate 6.4GB/s Graphics 150MHz, 70 million polygons/s 162 MHz, 12 million polygons/s Nvidia GPU 250MHz, about 125 million polygons/s Game medium 47.GB DVD, CD 1.5GB optical disc 4.7GB DVD Controller 2 controller ports, controller included 4 controller ports, wireless controller 4 controller ports RAM 32MB 40MB 64MB Network 56k modem, expansion unit for network interface 56k modem (to be replaced by broadband modem) Ethernet port Other features Two memory card slots, optical digital output, two USB ports, FireWire port, type III PCMCIA card slot, support for audio CD and DVD-Video, 3.5” hard disc drive bay Two slots for 4MB memory cards or a 64MB SD-Digicard adapter, high-speed parallel port, two high-speed serial ports, analog and digital av outputs 8-GB built-in hard drive, 5X DVD drive, 8-MB removable memory card, expansion port Industry Competitors

  4. New Entrants • Gaining market visibility is hard • Relationship between console producers and game makers • Attracting loyal players • High market costs • PC producers • Portable gaming

  5. Buyers • Bargaining power moderately strong • Buyer demographics • Buyer volume of Sony is greatest • Brand identity influence buyers • Buyers face high switching costs

  6. Substitutes • Direct Substitutes: • Personal computers • PDA games • Mobile phone games • Indirect Substitutes: • Arcades • Movies • Recreation, sports, hobbies vs.

  7. Suppliers Computer Chip Manufacturers • Not in a position to manufacture own chips • Switching costs low • Neutral to moderate influence

  8. Suppliers Software Developers • Highly dependent for high quality products • Additional hardware sale come from software sales • Software developers have autonomy • In-house programmers begun to reduce leverage • Strong influence

  9. 5-Forces Summary

  10. PC maker entry possible Mergers likely Expanded, multiple functions vital New target audiences promising Careful strategy planning crucial Conclusion

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