Dhaka Business School Decision

The product we have chosen the Play Station 4 as our product of study. We have chosen the PS4 because all members of the group have an interest in the product and are familiar with the purchasing process of the product either directly or indirectly.

The gaming console market has been valued at USD 50 billion markets in 2015. PS4’s share of the market is greater 50% and growing. The market consists of primarily single males in their mid to late twenties. These are bifurcated into two categories:

1. Hardcore gamers

1. Spend more than 10 hours per week

1. Mainstream gamers

1. Slightly older than hard core gamer
2. One-third have children
3. Tend to play blockbuster titles only

The main competitors for the PS4 are Microsoft’s Xbox One, Nintendo Wii, Nintendo 3DS even though these other products are targeting slightly different segments of the market. PS4’s closest competitor, the Xbox One, has marketed itself as a central entertainment system for the living room, with integration into social media and internet based TV services, the PS4 has positioned itself as a serious gaming platform that targets gamers primarily.

Demand for PS4

The demand for the PS4 is determined by many variables. However, for the purposes of this study, we will limit ourselves to the factors that are, in our opinion, most likely to affect demand for sales.

The factors that will most likely affect demand (in no particular order) are as follows:

1. Number of exclusive blockbuster titles

The blockbuster titles are that have a relatively high sales volume and are often follow-up titles to previous successful titles. These titles are very popular and can only be played on the PS4.  A high number of exclusive and popular titles will have a positive affect on sales whereas a small number of exclusive titles would hinder sales.

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