Conclusion
In conclusion, this blog has discussed and analyzed the possibility and potential for Sony Computer Entertainment, Inc. to expand its video game console manufacturing and network business to Brazil. As the most populous country in Latin America and one of the fastest growing game-playing populations in the world, it was stated in the blog that it would be highly beneficial and profitable to expand into Brazil as the starting point for the rest of Latin America. Introductory research on the Brazilian game-playing demographic was conducted and its results shared in the context of marketing potential, social class demographic gaming device usage, age demographic gaming device usage, and sex demographic gaming device usage. A starting point of the three most populated cities in the country (Sao Paulo, Rio de Janeiro, and Brasilia) were determined to be the target areas in which to begin operations.
With the beginning of operations, further research into marketing and a promotional event to bring eyes to the expansion project was proposed. The target population amount was determined (17,103,513), and the demographic was determined to be male and female gamers that self-identify as gamers and prefer to play their games on console. It was concluded that this promotional event could lead to a maximum of $192,755,592 in revenue. Logistics concerning a lottery in the promotional event were discussed, with a conclusion that it would be best for SIE to randomly select a winner from the pool of attendees, announce the winner publicly, and send an e-mail to him or her to ensure fairness, and that they receive the prize. These data served to further strengthen the argument for expansion into Brazil.
In order to account for growth in the market, decisions would have to be made by executive management on how to grow the business. Through research and analyses on operations, personnel, cash flow logistics, sales and pricing, and risk, appropriate data was produced that could serve to educate executive management on the business’s intimate state of affairs for them to make an informed decision on how to handle growth.
Finally, a challenge that could pose future problems for SIE were discussed. This was the neglect of the highly lucrative Live Service or Games as a Service business model, in which a game has a low barrier to entry for consumers, but some additional content in the game is monetized to encourage in-game spending. Methods of mitigation to that risk were presented, and quality control processes and methodologies were discussed for SIE to consider prioritizing the creation of a high-quality Live Service product to create long-term revenue generation as opposed to cutting corners to chase short-term gains to temporarily inflate quarter revenue numbers, but possibly invoking the ire of their customers with a buggy and low-quality product.
A process to capture feedback and evaluate it to feed into product improvement processes was outlined as well.
In closing, through the information and data presented in this blog, SIE will be fully educated and informed in everything they need in order to make a confidence-backed decision regarding whether to expand into Brazil or not.