Monday, October 3, 2011

PlayStation Vita — Sony’s Conduit to Building a New Mobile Ecosystem

On Tuesday, Apple (NASDAQ: AAPL ) is expected to unveil its latest line of
devices, including the iPhone 5 and a cheaper version of the iPhone 4. The
companys competitors continue to fight Apple on its own terms, releasing
smartphone after smartphone and hoping one connects with consumers on the same
level. Sony (NYSE: SNE ), on the other hand, is trying something else with its
PlayStation Vita a device that looks like an old-fashioned portable video game
machine at first blush but might turn out to be much, much more. Sony Computer
Entertainment director of hardware marketing John Koller detailed for
InvestorPlace his companys plans to carve out a new ecosystem in the mobile
space . We firmly believe that PlayStation Vita will supersede the mobile market
when launched, and have grand ambitions for a product that is really at the
forefront of innovation, he said. The mobile market in the U.S. offers consumers
extremely light gaming options. We developed PlayStation Vita after observing a
significant addressable market that demands rich, deep handheld gaming. In terms
of purely addressing the video game market, the Vita certainly has the partners
to perform well. When the device releases in the U.S. next spring (Vita releases
in Japan in December), it will be backed by entries in multimillion-copy-selling
franchises like Activision Blizzard s (NASDAQ: ATVI ) Call of Duty and Time
Warner -owned (NYSE: TWX ) Warner Bros. Interactives Mortal Kombat . Given that
video games are the most-used apps on smartphones iPhone users play games for
about 15 hours per month on average Sony is smart to try to win untapped
revenue in the mobile market with a high-end, $250 device Apples current
technology cant match. The Vita is just one component of a larger mobile
strategy Sony is unfurling, though. The reason Sony and Apple are direct
competitors even though their marquee mobile devices are so different is that
they are attempting to create whole new ecosystems of products and services to
drive sales. Apples devices have been hugely successful in large part because of
the iTunes and App Store digital storefronts and the entertainment options sold
through both. While Sony has opened plenty of digital services in the past, such
as the Qriocity subscription music service , its efforts have been disjointed.
The Vita and PlayStation Suite look to change that.

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