As with any massive business undertaking, the process comes with many risks. With the several operations to launch SIE’s expansion into the Brazilian market, any part of each operation could meet an unexpected outcome that would require massive efforts to remedy. Below are a few potential risks:

• Unexpected expenses regarding raw material imports. The majority of raw materials needed for the production of PlayStation consoles are expected to be able to be sourced locally, within the country of Brazil. However, for the materials that cannot be locally sourced, the high taxes associated with international exports will be passed down to the buyer (SIE) in the form of wildly expensive raw materials.
• Customers are not sufficiently moved by the Brazilian State of Play presentation. Sometimes, despite market research and focus testing, marketing presentations may miss the mark for certain viewers. This could translate to less than expected orders and purchases of consoles.
• Robot malfunction at the factory. Despite routine maintenance, it is still possible for the robots to malfunction. Any malfunction will severely hamper and possibly halt manufacturing operations until the malfunction is repaired, leading to loss in production and loss in revenue.
• Robberies during shipping and transport to retail vendors. Unfortunately, due to the global high demand for premium game consoles, it is a common occurrence for transport vehicles to be forcefully stopped and robbed by bad actors looking to either re-sell the stolen consoles at a higher price, or to keep for themselves.
• Majority of target customers (self-proclaimed gamers that are also console players) prefer competitor consoles and are unwilling/unable to buy a PlayStation console. With Microsoft currently having a larger market share in Brazil over SIE, it is possible that a significant amount of the target customers lean in preference towards the Xbox Series console, network, and games over PlayStation.

By remaining aware of these risks and planning accordingly, SIE should be able to comfortably mitigate any serious problems, losses, and/or issues before they occur.