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appropriate development pipeline, future EyeToy software development and releases, and expanding the EyeToy market. The EyeToy is an important product for Sony because it fit with the strategic objectives of the SCEE, as Phil Harrison said, “what we strive for in developing games- it’s be first or be best.” Not only was the EyeToy technologically innovative, but it also proved to be a commercial success. The EyeToy is a phenomenal product for Sony because it has a wider demographic than other games in the market. For SCEE, the EyeToy represented a golden opportunity to profit from the development and marketing of more games utilizing the new camera hardware. However, sales of the second EyeToy game, Groove, were disappointing. This was due to the bundling, marketing, and pricing strategy of Groove (which I will later discuss further). SCEE will have to reevaluate the EyeToy line to formulate an appropriate target market, development, bundling, pricing, and marketing strategies that will expand the EyeToy market, cost-effectively develop games to market, and successfully market and sell said games for maximized profits.
Firstly, SCEE must select the appropriate target market by evaluating the video-game consumers, the company’s position compared to its competitors, and the opportunities available. The gaming market is dominated by male’s aged 16-30. Sony’s PlayStation2 is the leading console. The situation for SCEE is strong, and full of opportunity, due to the strength of the PS2 console and its current customer base; worldwide there are 70 million PS2 consoles (compared to only 15million Xbox and/or GameCubes), and there are 1 million online subscribers. Thus, while the new EyeToy technology has the ability to reach younger, older, and female consumers, ...