Macro and micro environment trends in the gaming industry

Sony, a highly-technologically goaded transnational Nipponese corporation, is amongst the taking companies in bring forthing and selling electronics worldwide. Its quality electronic merchandises associated with laptops, Mobiles, cameras, video game consoles have enabled them to accomplish a important advantage over its rivals in the sharply ever-changing technological market. Play Station, Sony ‘s best innovation, is one of its outstanding electronic devices which have taken Sony to new highs due to its mass ingestion and ferocious consumer trueness. As a consequence, the success of the new Sony Play Station 3 prompted us to concentrate on how it tends to last in the market over the following few old ages. ( 2011-2013 ) . The current and future environmental scan of Sony Play Station 3 will assist us place several approaching challenges the cooperation must turn to in order to keep their success. Last, the geographic country we are concentrating on is the impact of Play Station 3 in UAE and how the market for gamers in the Middle East continues to turn.

The construction of this study will get down with the designing of the merchandise market construction along with the relevant market where Sony Play Station 3 and its rivals are functioning its clients. In add-on, we will analyse the external and internal environmental tendencies that can impact the continuity of the trade name. Besides, we will concentrate on other of import issues which are likely to originate in the hereafter and switch the focal point of cleavage, primary and selective demand, SWOT and competitory analysis.

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Merchandise Market Structure


Video Games Support Devicess

Personal computer

Personal Computers ( Personal computer )

Game consoles



Non portable

Portable -Handheld-

Non portable

Bachelor of science

Relevant Market

Unquestionably, the 7th coevals picture game consoles like Play station 3 with a cult following has non merely provided Sony with enormous economic benefits but besides an image of being a company that uninterrupted to use the bettering engineering and make such amazing machines which are being used worldwide. The non-portable and the portable gambling industry are dominated by ferocious rivals who adapt successful selling schemes to deviate focal point of possible clients from one boundary to another. The relevant market, for non-portable game consoles, in which Sony Play station 3 strives to run with uninterrupted success along with other recognizable trade names offer game console devices with similar characteristics and experiences. We tend to concentrate on the impact of Sony Play station 3 in the present and the future non-portable gambling console relevant market of United Arab Emirates, following three old ages ( 2011-2013 ) , and what strategies it will hold to set about in order to accomplish sustainability and guarantee long-run endurance. Baldwin ( 2010 ) studies, “ Tim Stokes, Gross saless and Marketing Director for PlayStation Division, estimated that bet oning in the Middle East is deserving up to $ 1 billion or “ two per cent of the planetary market ” of $ 45 billion in entire international gross revenues ” . Therefore, it is interesting to see cognize the Middle East market ‘s part to the success of bet oning devices and it prompted us to concentrate on this underrated UAE market that uninterrupted to be a hot chance in this gaming field. Furthermore, placing the relevant market for Sony Play Station 3 considers two of import factors which are “ degree of replaceability ” and “ managerial position ” will be applied to understand the merchandise market construction.

As showcased earlier, our merchandise market construction simplifies the apprehension of which merchandise class Play Station 3 and its rivals fall. Even though this market has many other rivals ; nevertheless, it is being dominated by few due to their ferocious mass trueness. In other words, non-portable game console is a amalgamate industry with few dominant market leaders with big market portions and world-wide presence. The first bed which deals with the client needs chiefly is the machines that can back up video games. These machines, which are video game back uping devices, are applicable for all types of picture games runing from Arcade to household oriented games.

It is so broken down into the 2nd of import bed, merchandise category, which is the picture bet oning console and the personal computing machine devices where we experience the synergistic games. The impact of the bettering engineering in both personal computing machines and video game console devices has extremely increased the grade of replaceability between the two. This grade of replaceability between Personal computer ‘s and portable/non-portable game consoles in the UAE market is presently really high as both devices are being upgraded to supply similar graphical experiences. In short, the Personal computer ‘s are besides making a really successful occupation in viing with the 7th coevals picture game consoles and in taking some of the client ‘s who enjoy playing games suited with a keyboard and more significantly the mouse. Understanding the grade of replaceability between the game consoles and Personal computer devices is present due to several factors. These factors can run from the sensed benefits, in footings of convenience and monetary value, to the characteristics the superior device has to offer that is compatible with the both games and client ‘s demands.

Furthermore, in the 3rd bed, merchandise signifier, the picture game consoles are so separated on the footing of being portable ( handheld ) and non-portable devices. The grade of replaceability is non likely to be present between the two at current phase in UAE since handheld devices to non supply the same thrilling experience every bit compared to a game being played on a bigger screen. Besides, the portable game console devices with two chief devices, PSP and Nintendo 3DS, tend to aim a different type of mark market which are chiefly kids. For a hardcore gamer, a large screen experience and viing via societal networking is an indispensable tool which can merely be excitingly through the non-portable gambling consoles. However, in the ulterior phase of the study, we will stress on the importance of size being now considered as a immense factor in the determination devising procedure and how the motion towards portable video game console devices is on an slope. In short, we will stress more on the shift between the boundaries of the relevant market in the deductions phase to warrant the logical thinking of the increased grade of replaceability between the non-portable and portable devices in the coming old ages.

Last, Sony Play Station 3 along with its current rivals comes in the last bed, trade name specification, under the Sony class that dominates the non-portable game consoles in the relevant market. As mentioned earlier, our study is limited down to the laterality of non-portable gambling devices, and the focal point being PS3, and their deductions in the coming old ages. This study will give a elaborate analysis of how Sony PS3 can be chosen based on assorted rational and emotional facets. Determining the grade of replaceability between the 7th coevals bet oning consoles that are Sony Play station 3 and X-box 360 is really ambitious due to the astonishing characteristics they both offer and therefore doing it hard for purchasers to acknowledge which 1 is better. Furthermore, this grade of replaceability is supported with the constructs of Primary and more significantly Secondary Demand that aids in the determination devising of current and future clients in which console to take. In add-on, the micro and macro environmental tendencies were carefully taken into history to guarantee what steps has already been taken to set up a competitory advantage ; moreover, the stairss Sony Play station 3 will hold to see over the following old ages in order to remain competitory in its relevant market.

In short, our managerial focal point is analysing the successful non-portable devices which belong to these cult trade names that are Sony Play Station, Microsoft X-Box and Nintendo. In add-on, the managerial focal point is extremely dependent on the future market of UAE and how Sony Play Station 3 should use this market to its maximal possible and understand its current and possible rival ‘s place in the coming old ages. Furthermore, the relevant market with regard to the non-portable game console devices in which Play Station 3, X-box 360 and Nintendo Wii compete may be saturated with these outstanding leaders ; nevertheless, our research chiefly focuses on Play Station 3 and we will seek to put its place in the relevant market in the current and following two old ages.

Macro environment

Political legal

Copyright Torahs

Counterfeit or copied video games and package are prohibited in several states including the UAE. Different governments in the UAE are join forcesing with one another, foreign authoritiess and with organisations such as Microsoft to capture imitative goods of different sorts including picture games and package ( Oct 19, 2010, Dubai Customs foilsaˆ¦ ) . The imposts inspectors take specialised classs in battling commercial fraud which enables them to bring out any efforts to endanger the national security of the UAE ( Oct 19, 2010, Dubai Customs foilsaˆ¦ ) . Harmonizing to the IPR -Intellectual Property Rights- section at Dubai imposts there were three ictuss of counterfeited Cadmiums in 2010 compared to five ictuss in 2009 ( Oct 19, 2010, Dubai Customs foilsaˆ¦ ) . In the old ages to come these Torahs are traveling to be more effectual due to progresss in engineerings and the more experient imposts staff and inspectors.


The GDP growing in 2009 was – 2.7 % compared to 2.6 % in 2010 ( Central Intelligence Agency, ( 2011 ) ) . The economic system is expected to bounce easy and the challenges faced include dependance on oil, exiles and greater rising prices, the rising prices rate in 2010 was 2.2 % ( Cardinal Intelligence Agency, ( 2011 ) ) . In the following few old ages the UAE is be aftering to increase variegation and better instruction and private sector employment for the UAE subjects ( Cardinal Intelligence Agency, ( 2011 ) ) . The economic crisis had a negative consequence on income which is considered to be a chief determiner when purchasing a game console since the monetary value of the consoles can be high. The economic crisis is expected to be reduced in the following few old ages, the GDP increased from 2009 to 2010, and following that income may lift and more clients become able to buy game consoles.


Statisticss from the ESA -Entertainment Software Association- show that in the United States 25 % of game participants are less than 18 old ages old, 49 % in the age group 18 – 49 and 26 % 50 and older ( ( 2010 ) . Essential Facts aboutaˆ¦ ) . Besides, 64 % of the gamers play video games with other individuals which is a higher figure than in 2008 and 2009 ( ( 2010 ) . Essential Facts aboutaˆ¦ ) . Parents take part with their kids in playing video games as 48 % drama picture games with their kids ( ( 2010 ) . Essential Facts aboutaˆ¦ ) . The ground for this engagement includes merriment for the whole household and socialising with the kids ( ( 2010 ) . Essential Facts aboutaˆ¦ ) . We can associate these statistics to the demographics in the UAE as 78.7 % of the population is in the age group 15 – 64. The per centum of picture gamers differs of class but in the UAE most of the gamers will likely fall in the age group 15 – 30.Video games and video game consoles in peculiar are going more users friendly and as in the Nintendo Wii there are games that target the whole household and kids. In the hereafter more video games and engineerings like the 1s that exist in the Nintendo Wii are traveling to be introduced. These video games will appeal to a broad scope of demographics of both genders.


Augmented world

Augmented world is a new engineering that is really popular today and a engineering that is still being developed ( Wen, H. , Jan 26, 2010 ) . In video game consoles augmented world can be seen in the drama station oculus plaything where images from the existent universe such as the user and show it on a computing machine screen ( Wen, H. , Jan 26, 2010 ) . Then the user is able to interact with practical objects on the screen through package ( Wen, H. , Jan 26, 2010 ) . The one-year gross revenues of augmented world are expected to lift from about 1 million in 2209 to 732 million in 2014 ( Wen, H. , Jan 26, 2010 ) . The engineering still faces several restrictions but developers and research workers are bettering and developing the engineering ( Wen, H. , Jan 26, 2010 ) . The research workers are seeking to incorporate existent universe images with artworks alternatively of merely exposing them on a computing machine screen ( ( n.d. ) , How Augmented Reality Will Work ) . This engineering will make a feeling of the five senses and divide the users from computing machine generated artworks ( ( n.d. ) , How Augmented Reality Will Work ) .

Gesture feeling game accountants

The Nintendo Wii was introduced with a gesture detector called the Wiimote which can track motion and places ( Sung, K. , Feb 2011 ) . The engineering was simple and proved that good engineered engineerings with appealing games can be really profitable ( Sung, K. , Feb 2011 ) . The Nintendo Wii was cheaper than Xbox and PS3 and it was considered a success ( Sung, K. , Feb 2011 ) . Following this success Nintendo introduced the Wii Motion Plus which is an fond regard to the Wiimote that improves truth and response clip ( Sung, K. , Feb 2011 ) . Sony reacted to this success by let go ofing the Playstation Move which is a gesture accountant for the PS3. Sony ‘s gesture accountant was more accurate than Nintendo ‘s accountant and acquired repute rapidly ( Sung, K. , Feb 2011 ) . After that the Xbox released its Xbox Kinect system in 2010 which contains province of the art engineerings ( Sung, K. , Feb 2011 ) . The system is a USB accoutrement for the bing Xbox 360 alternatively of being a whole new game console ( Sung, K. , Feb 2011 ) . This shows that video game consoles makers are traveling towards engineerings and devices based on human computing machine interface ( Sung, K. , Feb 2011 ) .

The following coevals of video game consoles

Video game consoles can be categorized in seven coevalss depending on the engineerings introduced with each console. PS3, Xbox 360 and Nintedo Wii are considered to be in the 7th coevals ( Miller, M. , Apr 1, 2005 ) . The following coevals is predicted to be more powerful with increased graphical power which will increase the costs of doing games for the consoles ( Morris, C. , 12 Jun 2009 ) . The costs are expected to lift from 20 – 30 million to 60 million per game ( Morris, C. , 12 Jun 2009 ) . The higher development costs of video games raise the cost of video game consoles fabricating ( Morris, C. , 12 Jun 2009 ) . Onlive is a company that is trying to stream picture games straight to the computing machine or Television through the users internet connexion at place ( Morris, C. , 12 Jun 2009 ) . The engineering is early but promising and can increase the life rhythm of the current game consoles ( Morris, C. , 12 Jun 2009 ) . However, this engineering can be present in the following coevals consoles. The following coevals is expected to get in 2011 or 2012 as mentioned by Yves Guillemont the CEO of Ubisoft -video game developer- ( Yam, M. , January 23, 2009 ) .

Micro environment

Consumer Behavior

As mentioned earlier, Sony ‘s mark market section, of the Play Station 3, is gamers, peculiarly teens or striplings ; Teens and immature grownups are the chief subscribers to the high gross revenues gross being generated by the Sony Corporation through the gambling console.

A common buying political orientation in the UAE, shared by most of its citizens, is holding or having the latest engineering or releases of electronic equipment ; this might hold been an act uponing factor in Sony ‘s determination of holding “ ” important stock stock list ” be made available to local retail merchants, safeguarding against deficits that have frustrated retail merchants based in launch markets such as Japan and the United States ” ( Nov. 30, 2010, GITEX Showcases Convergence ) . Such readyings, although in 2006, suggest that the corporation viewed the UAE as a demanding market. Four old ages following the release of the PS3, gross revenues of the console or its updates continues, with stock being replenished in major shops such as Carrefour and electronics shops such as Jacky ‘s. In 2008, it has been reported that “ the UAE bet oning console market has achieved Dhs17.78m gross revenues from January to Mayaˆ¦with 4.448 million units sold ” and the PS3 ruling the UAE console market with 59 % ( Aug. 16, 2008, UAE Gaming Console Salesaˆ¦ ) .

Having achieved such a success back in 2008, and without the being of present statistics on its current gross revenues rate, it is safe to presume that the UAE consumer market continues to turn in favour of the PS3 and by 2012 the UAE consumer market will still be into purchasing the PS3.

By 2013, though, with the forecasted coming of Sony ‘s new console, the PS4, there might be a lessening in the gross revenues of the PS3. Yet, the release of the new console might non impact the gross revenues in an wholly negative mode ; with the debut of the PS4 to the market, the monetary value of a PS3 would diminish doing it more low-cost for consumers who were non able to buy it when gross revenues were at its extremum. Besides, the debut of a new console into the market, harmonizing to Summers, “ the old system still has a batch of value because the new 1 is still traveling to be able to play your old games, and because the old 1 is still traveling to hold new games released for it ” ( Summers, n.d. ) . Hence, this ensures that UAE gross revenues of the PS3 are to go on, with a small depreciation, despite the debut of the PS4.

However, the UAE consumer market may exhibit a low demand to no demand for the PS3 by 2014, depending on the release of the PS4. If released in late 2012/ early 2013, the new console would hold a twelvemonth to accomplish its success and take control of the bet oning console market, due to the promised advanced engineering it is to offer and the betterment of the existent life bet oning experience that is being offered by the PS3. Hence, 2014 may be the twelvemonth where the PS3 takes the bench in the UAE market.

Nature of Buying Decision

The PS3 marks hardcore gamers, who would desire to experience as though they are portion of the game. Hence, the specifications offered with the console, such as Hi-Definition gambling artworks which makes the games every bit realistic as possible, and so on. However, the PS3 does come with a brawny monetary value ticket, doing it a difficult pick for those who would desire to buy it since similar specifications can be found on other consoles that are much cheaper. This is the point of purchaser motive.

The PS3, most of the clip, releases games that are considered to be sole to the consoles, therefore keeping the consoles uniqueness. Furthermore, other inducements are offered with the console, such as a Blu-Ray participant, leting the user to watch films of outstanding graphical quality and lucidity without holding to buy a separate participant to indulge themselves in such an experience. Hence, Sony provides its gamers and consumers with a complete bundle with the PS3.

The United Arab Emirates houses some of the most hard-core gamers and presently marked itself as a major bet oning market. Hence, since the console offers so much potency along with supernumeraries, such as those mentioned above, easy capture a buyer ‘s attending in this state. Besides, gamers in this state like to look for the alone gambling experience, and this is precisely what the PS3 offers. Furthermore, elsewhere, the brawny monetary value ticket would hold been a factor act uponing the pick. Yet, the UAE ‘s recoil from the recession, along with the engineering having competitory nature of its citizens, helps keep the current growing in gross revenues of the PS3 every bit good as the gross revenues for the following two old ages.

Loyalty Sections

Having antecedently released two consoles, the PS1 and PS2, which satisfied their consumers and entertained them beyond step, Sony is able to procure their loyal ‘fans ‘ . The PS3 ‘s release into the market was already a guaranteed success due to the repute earned by its predecessors in the gambling universe. All that was needed to pull the attending of the consumers was a alteration in the console design, doing it sleeker and easier on the eyes, and a little alteration in the gambling experience antecedently offered, such as smoother interface, debut of a complete operating system lodging all the consumer demands, and better in writing drivers to do the games resemble world.

Many of the people who purchased a PS3 in the UAE have antecedently owned, at least, the PS2. Furthermore, since the PS2 has been a success in the UAE every bit good as the part, harmonizing to Yasuhide Yokota ( Computer Gaming Major Sonyaˆ¦ ) , the state has a big and loyal fan base, in bend guaranting the PS3 ‘s growing in gross revenues within the following two old ages.


The PS3 ‘s current market challengers, in the UAE, are Microsoft ‘s Xbox 360 and the Nintendo ‘s Wii, even though the latter does non present as an obstruction since it does non come with half of what the PS3 has to offer to the UAE gamers. Gamers in the UAE seem to hold two chief involvements when it comes to comfort gambling: Football/ Soccer and rushing games. Hence, it is the Xbox 360 that is considered to be a menace to the PS3 since it offers about all the alone gambling experience specifications, such as high declaration artworks and smooth existent life drama, every bit good as the most demanded games, for a cheaper monetary value.

In add-on, holding mentioned the UAE ‘s consumer market ‘s inclination to invariably buy newer engineering and devices, another one of PS3 ‘s rivals, although a merchandise of the corporation, is to be the PS4, which is forecasted to be released on “ Q4 of 2012 or Q1 of 2013 ” ( Naik, 2011 ) as per the release timeline of the PS3 and its predecessors, even though no official release day of the months have been mentioned by Sony. Since the PS4 is to be an 8th coevals console, it is traveling to offer advanced engineering and better bet oning experiences than the PS3 doing it a mark merchandise for the state ‘s consumers.

Furthermore, games are a major influence in the pick of consoles for the consumers in the UAE. Game makers offer their services to all the consoles mentioned above, but these games could differ somewhat, as with the instance of the PS3 and the Xbox. Since the PS3 and Xbox fight over control, in the graphical facets, such as real-life gambling experiences, the enabling of high definition game-play and usage of environment sound, and other such features that complete the advertised and extremely awaited bet oning experience, Sony keeps their consumers through the debut of sole bet oning experiences such as the debut of games that can non be played other than on the PS3 and such, every bit good as making games with rubrics in Arabic to suit and farther fulfill the UAE ‘s market.

Porters ‘ 5 forces

Having laid out Porter ‘s scheme, in general, for the PS3, associating it to the console and the market of the UAE over a clip frame of the following three old ages is as follows:

Menace of Substitutes: As mentioned above, computing machine games/ Personal computer games pose as replacement to comfort gambling in general, and it is deriving popularity within the UAE. However, computing machine games do non offer the same gambling experience that the PS3 has to offer, and are merely interesting when played online. This gives the PS3, every bit good as its console rivals, an advantage ; synergistic online and offline gambling experiences. Traveling on towards the console rivals, the PS3 has been able to set up its topographic point in the market due to offering more as a bundle, than the Xbox 360 and the Wii, for a monetary value that is within the scope of the other consoles, and portions the same life-span, which is an estimation of 10 old ages. Furthermore, with the release of the Wii 2 ( 2012-2013 ) which is to hold Hi-Def artworks, the monetary value for that console will be higher than the PS3, in bend leting future consumers and current 1s to buy or stay with the PS3 which offers the same, if non more, degree of artworks.

Menace of New Entrants: Until the 3rd one-fourth of 2012, the competition for the PS3 remains the same: Microsoft ‘s Xbox 360 and Nintendo ‘s Wii. Furthermore, since Microsoft has released that the corporation has no purpose of let go ofing a new console ( Dumitrescu, 2009 ) , the PS3 will keep its current place in the UAE market. By the fourth one-fourth of 2012 or the first one-fourth of 2013, nevertheless, Sony is expected to let go of the PS4 ( n.d. , PS4 Release Dateaˆ¦ ) , following the tendency set by their old console releases, which would present as the PS3 ‘s newest rival, and by the terminal of 2013 it might alleviate the PS3 of its domination of the UAE market.

The Intensity of Competitive Rivalry: Within a twelvemonth ( by 2012 ) , the PS3 and the Xbox will decidedly hold games that exploit their graphical abilities to a great extent. However, since the PS3 ‘s full potency has non been wielded yet ( n.d. , PS4 Release Dateaˆ¦ ) , the opportunities are that the UAE market is traveling to remain with the PS3 since the games released so will/ might necessitate specifications more than what the Xbox 360 has to offer, specifications-wise. In add-on, farther development of the Playstation Eye will take topographic point, possibly honing the defects of interactive-reality gambling, which takes the Wii out of the equation. Despite the release of the PS4 by the terminal of 2012 and the beginning of 2013 though, the PS3 will stay to hold a fastness of the market, for so the monetary value of the PS3 is traveling to diminish and the games offered by PS4 are traveling to be similar to those available for the PS3, leting consumers to bask the same grade of bet oning quality that the PS4 has to offer. However, through the class of the twelvemonth, after the PS4 might hold had its clip to place it-self in the market, newer games, that might transcend the potencies offered by the PS3, will pull the consumers.

Dickering Power of Buyers: This will stay the same over the following three old ages, for the market is controlled by the three console makers. Until the release of the PS4 and Wii 2, the UAE market is to be the same as it is now. By 2013, when the new consoles are released onto the market, the monetary values of the PS3 and the Wii will deprecate, in bend coercing the Xbox 360 ‘s monetary values to diminish every bit good. However, since Nintendo ‘s history shows that the debut of new consoles is synonymous with the halting of production – games and appliances – for old 1s, and Sony has done otherwise with the PS3 ‘s predecessors ( Summers, n.d. ) , so consumers will see the PS3 as a safer investing.

Dickering Power of Suppliers: Since the competition is set, and the games sold are similar if non the same for each of the consoles, so the UAE market would stay the same for the following three old ages, even with the release of new consoles.

Stakeholder ‘s analysis

PS3 Customer Implications

PlayStation 4 is expected to hold great demand if monetary values are moderately high compared to the monetary value of ps3 in an attempt to supply as many clients as possible with the chance to buy PlayStation 4. By establishing drama station 4, consumers will by purchasing more PS4s than Xbox 360s and Wiis as a consequence Sony will take the market for coming old ages.

PS3 Environment Deductions

These are the programs for the following 3 old ages sing the Environment in UAE.

Sony ‘s Environmental Plan “ Road to Zero ”

Green Management 2013

Green Management 2013

Environmental Management Structure

Political campaigns and advertizements hiking these programs and events will heighten Sony ‘s image in UAE as the trade name appears as an environmentally friendly merchandise as a consequence as the demand for the trade name additions demand for ps3 will besides lift.

These CSR and environment protection activities are dearly-won and will set on a rise to the monetary value of Sony merchandises and therefore the addition in cost will be pushed to the monetary value of ps4 when launched.

PS3 Community Deductions:

Sony is anticipating to hold a positive impact in the coming 3 old ages through CSR activities by powering its merchandises and concern activities globally. PS3 ‘s indulgence in CSR activates is likely to heighten its image in the long tally as it will be perceived as a device which non merely is entertaining but besides environmental friendly.

PS3 Distribution Channel Deductions

Distribution cost will fall in the coming old ages, consumers will hold more pleasant shopping experience more specialised shops and gross revenues people who know precisely what the clients are looking for. Consumers will besides get down seeing Sony Retailer Network logo in Ads and POS shows. The more enhanced shopping experience will besides increase the demand for Sony and hence consequence in higher monetary values in the coming old ages.

Deductions over the following three Old ages

Deductions on the Relevant Market


Video Games Support Devicess

Personal computer

Personal Computers ( Personal computer )

Game consoles



Non portable

Portable -Handheld-

Non portable

Bachelor of science

Unfortunately, the boundaries of the Product market construction have already been broken due to several technological and socio-cultural factors. The increased replaceability is go oning because of the demographics in UAE have evolved and are ever looking for the devices that can offer the best gambling experience.

The first deduction which is likely to increase over the following old ages is the accent on bettering bet oning portable devices such as Nintendo 3DS which was introduced in UAE in the first one-fourth of 2011. The proprietors of Nintendo 3DS understood the new socio-cultural tendencies, which is presently basking the 3d engineering, and created this device for users who want the 3d experience in a smaller screen without the use of any spectacless. Nintendo 3DS being the first 1s to supply the gambling experience in 3d had created an tremendous sum of bombilation in the market ; hence, the same thought is now being applied by other companies. Sony Play station 3 proprietors are yet to use this 3d engineering ; nevertheless, in order to vie in this portable gambling industry, Sony will present Sony NGP ( PSP 2 ) in early 2012 that will supply an incredible gambling experience in little screens. “ UAE Distributers will smartly advance NGP towards the launch as the following coevals portable amusement platform and deploy assorted steps to further spread out the portable gambling market ” . ( Stuart, 2011 ) . Sony ‘s scheme of presenting NGP can supply them with a competitory border in the portable gambling market ; nevertheless, merely clip will state if they had succeeded.

Second, the surprising success of portable Personal computer devices like iPad and iPad 2 in the UAE market have created a really alone set of games with a big fan following. The games in the iPad are comparatively easier to play and can be really habit-forming. Furthermore, Blackberry that has been a planetary phenomenon with mass ingestion in the Middle East market are presenting its ain in writing tablet, with its ain official set of games, by the name of “ Blackberry playbook in the terminal of 2011 ” and therefore doing the portable gambling devices industry more demanding and competitory. ( Shuey, 2010 ) . In short, the games in these in writing tablets like iPad and Blackberry which are more gesture and motion oriented has solidified their place as a serious rival in the portable gambling industry for Personal computer ‘s.

Third, the bettering characteristics of the non-portable personal computing machines is another major menace which are designed for hard-core gamers who want tremendous storage capacity features along with its unbelievable graphical experience. A perfect illustration of such computing machines which provide similar graphical experiences to PS3 and Xbox is Dell ‘s Alienware. Alienware might hold been launched by Dell in 2008 ; nevertheless, it can back up all playstation3 and xbox 360 games doing their presence extremely competitory in the market. Furthermore, it is being upgraded and reintroduced on frequent footing unlike Playstation 3 which takes longer clip for its following version to launch. The use of mouse and keyboards makes the Personal computer industry still a ferocious rival as games will ever necessitate fast and accurate manus motions that can merely be used on Personal computer ‘s. In add-on, Personal computer ‘s are besides really economical due to the latest games which can be downloaded on the cyberspace for free as opposed to PS3 games which can be really dearly-won and can take months to get. Besides, the limitations of certain popular games with high sexual and violent content are banned by the UAE authorities ; hence, the Personal computer gamers can bask the cyberspace service and can rapidly download and play these games for free.

Last, as mentioned in the technological subdivision, the new characteristics in the non-portable gambling console which is PS3 ‘s relevant market have shown huge betterments. This is chiefly because of the focal point of games traveling from arcade to fitness-oriented. The X-box Kinect which was introduced in late 2010 understood the demand for fittingness oriented games and launched this console to vie with Nintendo Wii. On the other manus, “ Play station 3 used a similar scheme of establishing its gesture accountant and did non hold the start they anticipated in Middle East ” . ( Baldwin, 2010 ) . However, the approaching PS3 console with “ 3d characteristics in late 2011 and an improved blu-ray ” is likely conveying back some attending for PS3. ( Stuart, 2011 ) .

As shown in the diagram above, the betterments in the portable and non-portable devices where Sony Playstation 3 does non vie has created mass attending in UAE ; as a consequence, is likely to impede their repute as they are no more the lone company ruling the gambling industry. In short, the deductions over the coming old ages mentioned before needs to be addressed by PS3 to guarantee long-run endurance.

Deductions on Primary Demand

In the following three old ages at that place will be a alteration in the scope of demographics that are attracted to PlayStation. With the debut of PlayStation Move the gesture detector for PlayStation and its simple synergistic games more kids and older age groups are able to play video games on PlayStation. Besides, the monetary value of PlayStation will diminish with the approaching debut of the new PlayStation and the fact that PlayStation 3 has been introduced three old ages ago. As the old ages base on balls by the PS3 game console becomes more low-cost by households in different income degrees. With the debut of the new gambling console client turnover is likely to increase in the following few old ages. Besides, as people become older it is inappropriate for them to have video game consoles and they pass it to younger members of the household.

Sony is following a planetary green plan which makes some people support Sony in this plan by purchasing PS3 and that affects the willingness to purchase. Besides, there are new game releases every twelvemonth and some of those games are sole for PS3 such as the new “ God of War ” which is a really popular game on PS3. Besides, Blu-ray engineering is going more appealing and is deriving more credences from users and other possible clients. With the multi-purpose PS3 picture game console PS3 is deriving more popularity among the users and clients. Besides, there are frequent updates for the PS3 operating system and package which decreases the use jobs. In add-on, as mentioned earlier more people are accepting the Blu-ray engineering which decreases the sensed hazards. Furthermore, some of the PS3 games are available in 3d and applicable with PlayStation move. The PlayStation move gesture detector can be used alternatively of the mouse on the computing machine and 3d enhance the game experience which can diminish the grade of replaceability between PS3 and computing machines. It besides decreases the sensed hazards in respects to computability and bet oning experience.

Deductions on Selective Demand

The deduction of the Selective demand is associated with the motion of certain PS3 elements from one property to another in the approaching three old ages. First, the implementing of 3d engineering in the new Play Station 3 version displacements from optional to determinant property. Gulf intelligence newsman, Ken Stuart ( 2010 ) , studies, “ while 3D at the film still feels like something of a catch, 3D engineering brings with it touchable benefits in gambling. The following five old ages will be about new interfaces and brain-computer interfaces will play a major function in giving users new experiences. Harry Potter will execute true thaumaturgy in a game ; it wo n’t be about forcing buttons. Headsets can besides read the participant ‘s emotions, conveying in a wholly new dimension. Games will be able to constantly mensurate your degree of exhilaration, ennui or fright, and orient the action to do it disputing and exciting all the clip ” . The bombilation of 3d engineering in the UAE market is here to remain for the following three old ages ; hence, re-introducing PS3 with 3d engineering is an first-class scheme of adding a strong determiner property into the system.

Besides, as mentioned earlier, the accent on motion oriented games will be on an huge slope. Therefore, the new PS3 gesture accountants will besides switch from optional to determinant properties in the following three old ages. Before the intent of buying drama station 3 was sing the extremely graphical experience for first-person taw games ; nevertheless, now the tendencies have been altering and people buy non-portable game consoles for more than one intent. Therefore, the selective demand will be based on which picture game console can supply them with motion and technological benefits. Even though drama station 3 may be successful with the technological facet ; nevertheless, it needs to get down utilizing its gesture accountants and present more games for that characteristics purpose which can pull the Nintendo and Xbox mark market.

Deductions on Cleavage

In the following few old ages the sections will approximately be the same but with more accent on household amusement and synergistic games. When the first Play Station was introduced it was targeted for 12 – 17 twelvemonth old males and presently they target clients both male and female in different age groups ( Trediman, D. , May 8, 2006 ) . Sony modified its aiming scheme in the picture game consoles market over the old ages with the debut of different game consoles. The PS 3 positioned itself as a multipurpose game console with different amusement intents such as cyberspace browse, watching films and position exposure slideshows. The PS3 entreaties to many different sections with different demographics and behavioural features. The new game console that is traveling to be introduced in the following one or two old ages will be a new coevals game console. Not merely will the console be modified to appeal to older age groups and households but will besides include engineerings that will appeal to the engineering enthusiasts. It is right that the cost of fabricating video game consoles and games creative activity is traveling to be higher in the following old ages and mass selling may look much cheaper. However, with cleavage Sony can hold a clearer definition of its mark, rivals, the clients and their demands.

The first section we identified, online multiplayer services, will profit from more appealing and synergistic online bet oning environment when cloud computer science is used to back up on-line gambling. Users will be able to play and buy games on the cyberspace without traveling to shops and purchasing Cadmiums. In add-on, with the usage of cloud calculating these games will have high graphical power or even HDMI compatibility.

Earlier we mentioned that the competition in the picture game industry is altering towards household and simple games with simple engineerings. Even though, this does non intend the engineering is traveling to be ignored. The new game console is traveling to have high treating power with the ability to run picture games with much better artworks and interactivity. Besides, as mentioned earlier there are guesss that cloud computer science is traveling to be used to back up on-line gambling. These characteristics can pull the engineering driven and frequent updaters sections depending on how Sony utilizes and market these benefits.

Deductions on Competition

Nintendo changed competition in the picture game console industry through the simple engineering and the widely appealing games in the Nintendo Wii. This affected the nature of completion by viing on simple and appealing video games alternatively of viing on engineering and technological public presentation. In add-on, more powerful consoles with increased graphical power increase the fabrication costs of video game consoles. This may ensue in a competitory environment where the major game console industries try to cut down the cost of production in order to hold a lower retail monetary value. Besides, as mentioned earlier the new engineerings and devices are heading towards more homo to computing machine interface. Technological progresss in augmented world which enhances homo to computing machine interactivity might be seen in the following coevals picture game consoles and the major makers might be viing on utilizing this engineering. In add-on, the makers might vie on a engineering called cloud computer science or supplying users with computational power via the cyberspace. As mentioned earlier there is a possibility that video games can be streamed straight to the users Television or computing machine. This can be a new country of completion between the picture game makers in the old ages to come as they will be able to bring forth appealing offers to their clients in relation to calculating power and graphical power with a little addition in costs. Another tendency in competition might be seen between video game consoles and computing machines since computing machine makers are bettering the engineering to include more amusement and games. However, video game console makers can trust on stressing the difference in the bet oning experience between bet oning consoles and computing machines.


In decision, we can deduce from the analysis of both micro and macro environmental tendencies that the market for video games consoles is altering. The important alterations are traveling to happen in the technological portion of the Macro environment. These technological progresss are traveling to help in developing simple broad appealing games to different demographic groups which can be considered as another displacement in the industry. It was mentioned in the macro analysis that Nintendo triggered this displacement and proved that engineering and technological promotions are non the lone success factor in video game consoles. Another important tendency is copyright Torahs that prohibit imitative Cadmiums and package. This is a major job for both video game makers and game developers and the UAE is executing good in battling commercial fraud and forgery goods. The deductions of these alterations can be seen in the relevant market, primary and selective demand and specially competition. As mentioned earlier, competition in video game industry might switch towards bring forthing simple broad appealing games with engineerings that allow for human – computing machine interface. This alteration is taking topographic point now the PS3 has PlayStation Move, Xbox has Xbox kinect, and Nintendo has the Wii atom.

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