Product/Service Analysis
Sony is reportedly increasing its PlayStation Network server capacity in Brazil following Microsoft’s success in its efforts (Khan, 2022). If this information is to be believed, then it is recommended that SIE rollout its PlayStation Plus Premium service in Brazil and retire the PlayStation Plus Deluxe service it is currently offering Brazilian gamers. The difference between Deluxe and Premium is that Premium allows for game streaming to a PlayStation 4 or PlayStation 5 console through the cloud and Deluxe does not.
SIE’s competitor, Microsoft, has enjoyed massive success and increased market share in Brazil due to its rollout of Xbox Cloud Gaming service in the country (Gluckstein, 2021). With that service, Brazilian gamers are able to stream their game directly from Microsoft’s servers onto their Xbox Series consoles, PCs, or mobile devices. SIE has responded to the shifting trends of the industry by releasing a lot of its highly coveted and brand-defining single player games on PC. While serving PC gamers well, it does not service mobile gamers—the majority of Brazil’s gamers—at all. Following a successful rollout of Premium, SIE can begin work on expanding the capabilities of its streaming services by incorporating a fully cloud option in which a console is not required—gamers would be able to stream their games directly from SIE’s servers to whatever device they have, including mobile devices. This would capture a large chunk of the Brazilian market, of which historically, and before the explosion of mobile gaming, preferred PlayStation consoles compared to other consoles.
Figure 1: Game Console Market Share (in Percentages) from June 2021 to June 2022. Credit: StatCounter
References
Khan, Z. (2022, June 18). Report: Sony Significantly Expanding PSN Server Capacity in Brazil for Cloud Streaming. Playstation Lifestyle. https://www.playstationlifestyle.net/2022/06/18/psn-server-capacity-increasing-brazil/
Gluckstein, K. (2021, September 30). Xbox Cloud Gaming Launches in Australia, Brazil, Japan, and Mexico. Xbox. https://news.xbox.com/en-us/2021/09/30/xbox-cloud-gaming-launches-in-australia-brazil-japan-and-mexico/
(n.d.). Console Operating System Market Share in Brazil – June 2022. StatCounter. https://gs.statcounter.com/os-market-share/console/brazil