7. How come the Sony Play Station has succeeded where 3DO failed? 8. What drove Microsoft’s decision...

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7. How come the Sony Play Station has succeededwhere 3DO failed?
8. What drove Microsoft’s decision to enter the industry withits X-box offering?
9. What lessons can be learnt from the history of thehome video game industry that have been used to help launch theSony PlayStation II and Microsoft’s X-Box? Do Microsoft and Sonyappear to have learnt and applied theselessons?

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1 Why has Sony PlayStation succeeded 3DO failed o In fall 1995 Sony released PlayStation with a 32bit RISC microprocessor running at 33 MHz and a doublespeed CDROM drive To attract independent game developers such as EA Namco and Acclaim Entertainment the head of the company Olaf Olafsson promised low royalty rates The standard royalty rate was 9 however developers that signed on earlier were given a lower rate o Sony also set up a retail channel separate from its consumer sales force The PlayStation was marketed as a hip and powerful alternative to Nintendo and Sega systems Sony set up instore displays to allow potential customers to try the equipment Just before the release of the system Sony had 12000 retail outlets in the United States The targeted demographic was See Answer

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