Tag Archives: sony

Why Google’s launch of Stadia is a game-changer for the gaming industry

Stadia Blog

Google’s launch of Stadia is a game-changer, and a move that will have Nintendo, Microsoft and Sony quite concerned. No downloads, no patches and no console makes this the cloud gamers dream, and Google is delivering this incredible service without compromising on graphics quality. With 2.3bn active gamers globally and 46 per cent of those (1.1bn) spending, the financial impact to the establishment is significant. More so with the forecasted growth of gaming from $137.9bn (£105.3bn) in 2018 to more than $180.1bn by 2021.

Generational changes in consumers have seen Millennials identify with nostalgia, and they recapture their youth through console gaming, just as they have been doing for over 20 years. Back in 1994 PlayStation appeared on the market and having sold 525m consoles. It’s by far the most successful gaming platform ever.

Sony, together with Nintendo and Microsoft, has attempted to evolve the proposition and gaming to a digital platform with some degree of success. The most successful here is again PlayStation, with 80m active users on its PlayStation Network, up from 70m only a year ago.

However, PlayStation 4 Sony’s most up-to-date platform, is now six years old and accounts for a third of the total Sony turnover and profit. It’s no understatement to describe PlayStation as the jewel in Sony’s portfolio and that may just be about to be disrupted.

“A new generation platform”
Enter Google with its Stadia solution. As Phil Harrison VP and general manager at Google stated when launching Stadia: “It’s a new generation platform, rather than a next generation platform” which is what perhaps Sony, Microsoft and Nintendo have failed to achieve. Instead they’re merely evolving the concept of their platforms, rather than recreating them. Stadia will be a tough act to follow, with sharing options via YouTube, which has 63m daily viewers worldwide, Google Assistant built in, 4K resolution games at 60 frames per second with HDR (High Dynamic Range), and a plan to support 8K resolution in the future.

It may be game over for the business of selling hardware and encouraging gamers to ‘upgrade’ to a new console. This is not great for retailers who make a good margin on selling the hardware to eager gamers needing to upgrade to access the dream being sold by the platforms. For the platforms, success relies heavily on the hardware sales as the portal to the business end of the operation, the games themselves. Much like the print industry, brands sell the hardware at little or no margin to acquire users to the platform, tying them in to facilitate access to the gaming titles which deliver the true spoils and profit to the platforms.

Now with Stadia the internet is your store, with the network and data centre as your platform. So perhaps the paradigm is about to shift and the gaming industry will see a new emperor wear the clothes.

Generation Alpha

Consider Generation Alpha, the generation born after 2012, who as future consumers have been born into an era where minimalism in hardware drives digital innovation. This is the generation whom Stadia speaks to in volumes, and it may well turn out to be the only gaming platform this generation ever knows. Given that many 10 year olds become avid gamers, mobile phone, tablet and computer users, with no concept of physical media, this seismic shift could make the gaming establishment obsolete, unless their platforms evolve quickly.

To read the full article please visit Mobile Marketing.

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Mobile World Congress Plays Backdrop to the Telecoms’ Brand Fight

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As the great and good of the mobile world gather in Barcelona for this year’s GSMA Mobile World Congress, an event attended by none other than Mark Zuckerberg fresh on the back of his WhatsApp purchase, what will a crowded category of brands announce next?

Samsung, Apple, LG, Blackberry, Sony, Nokia, Huawei, Motorola and the list goes on. The number of mobile brands out there is large, so how does this mass of brands gain affection? Samsung has just launched a brand marketing platform in a bid to become the ‘most loved brand,’ while this year we’ve seen Huawei ink a partnership with Arsenal. The opportunities for these brands to overstep each other are limitless, so who will win this aggressive marketing match?

You don’t have to look far to see evidence that the world of successful, high-end smartphone makers is shrinking to a few major contenders dominated by Apple and Samsung – while other important brands, like BlackBerry, LG and Motorola, fade in prominence or struggle to compete. Still, lesser known brands have a chance to grow, even thrive, in emerging markets. Lenovo is picking up steam in China, the most important growth market there is; and, even though they’re on the brink of extinction, BlackBerry phones are still selling throughout Africa, South America and the Middle East. ABI Research says that smartphone penetration is at 20 percent out of a global population of 7.2 billion people. Looking at it another way, smartphones accounted for a little over half of all mobile handset sales in 2013. That means there are a lot of people who will be shopping for their first-ever smartphones, people who perhaps aren’t as focused on brand loyalty as they are on value.

So what are these brands doing to gain market share? Sponsorship is a core strategy for many of these brands. Huawei hopes its tie-up with Arsenal will boost awareness of the brand in the UK. It had a 0.9 per cent share of the UK smartphone market in November, according to comScore, putting it 9th in the rankings behind brands including Samsung, Apple and BlackBerry. That is also well behind its global share, which Strategy Analytics estimates at 5 per cent in the third quarter.

Then, there are the beloved celebrity endorsements that catch many an eye. However, it remains unclear whether they have helped some of these ailing tech businesses. HTC had been struggling, but hoped that its signing of Iron Man star, Robert Downey, Jr., last year for a two-year deal could turn things around. In picking a big-name actor to not only front its campaign, but also help shape it, HTC is following a well-trodden path; however, the endorsement has failed to attract at a high level as its net income fell by more than 90 per cent last quarter.

The problem is that there are so many brands out there and the ones that are winning the match are those that have strong brand identities. Whilst Apple focuses on experiences for customers rather than sponsorship and celebrity, the brand keeps consumers at the heart of everything it does, allowing it to anticipate what they want next, breaking new ground in design and performance. Samsung’s products are equally as good (just look at the recently launched S5) and the brand’s marketing approach, a large investment set to drive brand loyalty, is as scientific as its nearest rival. A “brand dependence” index revealed at CES suggested that more people are dependent on the Samsung brand than any other in consumer electronics. As part of its brand strategy, it has invested heavily in social engagement and that too is paying off as it clearly knows its audience and how to target it. With EE in the UK announcing a 68% increase in 4G customers, consumers want a handset which not only compliments the network, but also meets their needs – whether this be functionality, speed or style.

For brands on the periphery to succeed, there needs to be some deep-seated consideration taken in what the brand stands for and what its target audiences are. The brands out there at the moment seem to be clambering after everyone rather than taking a step back and establishing a concrete outlook into the future and where they want to be. Nokia, which – we don’t need to be reminded – is now owned by Microsoft and oddly launching an Android device, is a great example. As with any demographic, brand is everything. For a category that we cannot live without in this connected world (where our smartphones get thinner, get larger in screen size and become not only phones, but also cameras and media devices), these brands could possibly transform their businesses by holding back on the random star endorsements and sponsorships until they know who they’re targeting.

The land grab opportunity is huge and everyone attending MWC this week knows the value of a 1% global decline in emerging markets as predicted by GfK, but who will dominate and buck this predicted trend in our brand-fickle world?

Written by Daniel Todaro

Read the full article at http://www.brandingmagazine.com/2014/02/25/mobile-world-congress-2014/

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Why Sony and Microsoft’s head to head may prove self-defeating

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Sony’s PS4 is going head to head with Microsoft’s Xbox OneSony’s PS4 is going head to head with Microsoft’s Xbox One

Wow, like buses you can wait for a considerable amount of time – seven years in the case of Sony – and all of a sudden two will arrive in tandem.

If you’re over 12 years old, you may be one of many people out there who has been waiting with baited breath for the arrival of PlayStation 4 and Microsoft Xbox One. Their arrivals are going to be filling up many fans’ time from now through to Christmas and new year. These are two huge brands killing Nintendo as the must have game platform.

Can these brands really attract a willing audience, especially with launches so close? And how do they benefit?

With brand loyalty at an all-time high, won’t those loyal to Sony or Microsoft continue to be loyal without the need for the media hype and PR frenzy, which for one will result in likely negative publicity and a potential drop in share price? Why wait seven years to go head to head with your biggest rival?

These brands invest so heavily in their equity. And in the case of gaming, they have on their hands a fickle audience where the right brand or platform is crucial for them to appeal to their peer groups. They’ve already transformed the functions of their consoles to do more than just provide an outlet for gaming.

With the console industry’s revenue falling, these brands have had to stretch their limbs to provide a kind of living room one-stop set-top box that offer all types of digital entertainment. These devices are now used to watch and control live television as well as streaming video from services such as Netflix and Hulu. No call for living on your sofa could be stronger than these incentives.

Launching deliberately so close together to create a battle may potentially be self-defeating and could have more far-reaching ramifications for the larger brand portfolio. After all, Sony, having just written down its profit forecast by 40 per cent, is taking a huge risk on one platform at the expense of the brand as a whole.

Social criticism is part of the nature of gaming, where violence, gender stereotyping, swearing and not forgetting the health inflicting aspects all have a cross to bear. Is it not time for these brands to consider the wider brand impact? Gaming is one of the most inventive, creative and technologically advanced industries within the developed world, and in the case of the UK, is a considerable contributor to the economy through forward thinking studios supplying Sony and Microsoft. Its social effect is vast and growing and once my generation fades into a distant memory, I imagine it will be hard to find anyone who doesn’t use a console to be socially active.

However, this all hinges on the brands’ survival and the luxury of choice Nintendo, Microsoft and Sony provide, which through self-imposed brand wars could disappear if the brand as whole dies. This could leave us with no choice but to head towards a future of dull conformists with only one platform to play on.

Dan Todaro is managing director of Gekko

read the full article at http://www.thedrum.com/opinion/2013/11/29/why-sony-and-microsofts-head-head-may-prove-self-defeating

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Has Product Placement Gone Too Far?

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Product placement within film and TV is hardly breaking news. Since the dawn of broadcast media, brands have been eager to muscle in on our attentions and put their logos in front of us. We now expect to see James Bond with his Omega watch, driving his Aston Martin and flashing his latest smartphone. But I have to ask, are brands now taking product placement to a whole new patronising level?
 
Recently, we took the kids on a cinema trip to see The Smurfs 2 (not my choice, I hasten to add!). I can’t say I was expecting an Oscar-worthy, two-hour emotional tour-de-force of filmmaking, but I was astounded by the degree of product placement within the film. Prior to the screening, I wasn’t aware that it was a Sony Pictures production, but by the end I was wondering if the script was actually based around Sony products!
 
From the newscaster presenting in front of a Sony LED TV to every single adult cast member using a Sony Mobile (of course, demonstrating its full range of services), I actually think it’s difficult to argue that the brands didn’t tailor the script to meet their product placement needs. The villain Gargamel even used a Sony Vaio tablet to cook up his dastardly plans. Twice!
 
As it transpires, Sony Pictures secured deals worth $150 million from over 100 corporate partners to promote a raft of products within the film, far exceeding the production budget of $110 million. To my kids, and I’m sure every other child in that theatre, this likely didn’t register. But for us more brand-aware adults, it was so blatant that I have no doubt I missed several more Sony products woven into the script.
 
Are brands beginning to push their luck a bit too far? Investment in the film and TV industry is crucial, but, in exchange for a sizable cash injection, brands are naturally going to push for as much of the limelight as possible, with scant regard for the script. The larger the investment, the larger the degree of control exerted.
 
The trend was highlighted in typically overstated-fashion by Morgan Spurlock last year with The Greatest Movie Ever Sold – a documentary on product placement with a $1.5 million budget entirely funded by… product placement. As brands become an even more ever-present constant in every facet of our lives, the natural progression is that the volume will further increase and the stakes raised even higher.
 
The connotations for the film and TV industry are slightly worrying, particularly at a time where the industry – I believe – is enjoying the rudest of health in recent years through some remarkable films, TV content and documentaries. I wonder if, as brands seek greater screen-time, we are going to see a day in the not-too-distant future when an actor will refuse to endorse a brand in a movie? Or will the lure of money continue to trump all as more and more blockbuster movies appear as little more than very long adverts with a storyline bolted on?
 
To some extent, audiences do want to see product placement within films; for example, to see a character entering Starbucks as opposed to a trademark-friendly, fictional alternative adds a degree of realism to proceedings. However, there is a fine line that needs to be observed or else the brand risks sticking out like a sore thumb. Unfortunately, since James Bond swapped his Martini for a Heineken, Will Smith dwelt a bit too long on a pair of Converse in I, Robot and Superman reboot Man of Steel hedged it’s box-office failure by securing over 100 global brand partners to the tune of $160 million, the act of product placement has been increasingly taking the spotlight away from the actual stories themselves.
 
I like to think I can appreciate both great branding and great filmmaking, but how closely should we be allowing these two disciplines to merge? With cinema visits in decline and gimmicky features such as 3D failing to take off, the money has to come from somewhere after all. But is it in the brands’ best interests to push their own agendas at the expense of great filmmaking? Is it in their best interests to appear cheesy, naff and downright uncool, thereby damaging their valuable brand equity?
 
You would think not, but, still, I can’t help but feel that it’s up to us – the audience – to make that stand.

Read more at: http://www.brandingmagazine.com/2013/11/05/has-product-placement-gone-too-far/

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