Executive summary
Using the 4Ps marketing mix strategy, this paper thoroughly analyses the distinctions and similarities between the Nintendo Switch and Sony’s PlayStation 5 (PS5) game systems. With Nintendo and X boxer game consoles as its primary rivals, the PS5 currently holds a 52% market share. The marketing and distribution approaches used by Nintendo and the PS5 are frequently comparable. Their product characteristics and prices, however, range significantly from one another. Nintendo should create a brand-new, exclusive product with cutting-edge features to maintain a larger market share. Conversely, Sony has to make more significant investments in advertising and marketing to preserve its market share and competitive edge.
Introduction
For most people in today’s world, gaming consoles are a given. To a large degree, though, they are pricey, and each gaming console offers a distinct experience in terms of design, graphics capability, and game availability. Di Domenico (2021) claims that the Play Station 5 (PS5) is the peak of next-generation gaming, providing smooth 4K @ 60 frames per second gameplay and quick load times thanks to a specially made SSD. It features an opulent design and an unparalleled dual-sensing controller. Currently, PS5 holds a 52% market share.
Conversely, most customers believe that the Nintendo Switch (OLED) has a slight advantage over the PS5 console regarding graphics capability. However, Nintendo provides a comparatively substantial OLED display, reduced bezels, and longer battery life. Compared to the PS5 console, it is less costly and does not enhance graphics performance. This report compares and contrasts the Nintendo Switch and PS5 game systems.
STP Strategic Approach
Businesses may develop a targeted and practical marketing strategy by following the three steps of the STP Model (segmentation, targeting, and positioning). It makes it possible to market a good or service more successfully to draw in specific clientele. Demographic segmentation is the primary segmentation strategy used by Sony and Nintendo. People in the age range of 15 to 40 are considered gamers. The primary target demographic for the Nintendo and PS5 game consoles is those who like gaming (Egami et al., 2022). Compared to Sony, Nintendo uses a distinct positioning strategy. Nintendo markets its gaming systems as appropriate for casual and competitive players.
Findings
Target market
The Nintendo Switch’s target market is relatively clear-cut. They mainly target those between 15 and 30 who enjoy playing video games in specific settings. Men, women, educated families, and friends who are video game aficionados make up the prospective groups. Most of these people are active on the internet. The target market for the Sony PS5 is primarily men, with a small percentage of women between the ages of 17 and 40. Males who have just transitioned out of being gatekeepers and seem more accessible than teens or young children are usually the primary target consumers. However, it is essential to note that middle-class and upper-class people comprise most of both consoles’ customer sectors.
Product
According to Grzybowska-Brzezińska et al. 2020, Levitt’s theory of total product idea states that each product consists of three main layers: The core layer specifies what the customer is purchasing. Actual layer: transforming the primary advantage into the product’s natural features, premium style, packaging, and name. Finally, the enhanced layer offers more services and advantages to customers. The three levels mentioned by Levitt are also present in the PS5 and Nintendo Switch consoles. Both items are utilized by gamers based on their physical look, branding, and design. Their primary utility is limited to gamers who, price aside, would rather play on the PS5 than the Nintendo system; the underlying relationship and requirements are focused on meeting commercial objectives and giving players the best possible experience. Sony PS5 produces gaming systems for adults and children to play video games at home. The PS5 has an SSD drive with better speed and 4K resolution at 120 frames per second for fluid, high-definition video. It is backwards compatible with the PS4, 3, and other early PlayStation system models. Switch Nintendo offers a fantastic gaming experience at a quicker frame rate and with comparatively high visual levels. The Nintendo Switch is often a significantly more petite version of the system. They are allowing for more mobility and transferability for players. Considering the PS5 and Nintendo Switch devices, we can comprehend them and apply the Aaker brand personality model. Both names embody the entire “Ruggedness” brand personality of Aaker. The items are strong, long-lasting, and of excellent quality.
Price
The PlayStation 5 system is priced higher than other consoles in the market due to the intense rivalry. The video game business has become increasingly interactive, with Microsoft, Sony, and Nintendo among its top rivals and market leaders. The price of the PS5 is shown in Appendix 2 and varies somewhat depending on the location and model chosen. Regarding the PS5 game system, the pricing plan often offers significant advantages. However, according to statistics from Stead and Hastings (2018), the new Nintendo Switch costs between £299 and £349, significantly less than the PS5. Because it offers comparable pricing and produces more exclusive games than its main rival, Sony, the Nintendo Switch has been the most well-liked device among consumers in most areas for the past three years. Nintendo is renowned for differentiating pricing to increase the game console’s final profit. The PS5 costs a significant amount more than the Nintendo Switch system. However, the majority of gamers have been purchasing PS5s in recent years. Nonetheless, because Nintendo systems are less expensive, most buyers have previously chosen them.
Place
Russia, India, the United States, the United Kingdom, and China are among the many countries where Nintendo Switch game systems are more widely available. About 120 countries comprise Sony’s worldwide market, including South Korea, the United States, Oceania, and India. The PlayStation 5 is accessible globally through physical and virtual stores, much like the Nintendo Switch. In addition, Sony has several support centres throughout the globe for anyone experiencing issues with the PS5 system. Sony also provides an online training platform for customers who purchase the gaming system online—which is far less expensive than doing it in a store.
Promotion
Sony uses game expositions, YouTube, shopping centres, E3 events, other online shopping platforms, and social media to market the PS5 system to its target consumer base. The PS5 platform is becoming increasingly well-known due to its aggressive media promotion tactics, which include TV stations, online training resources, and the availability of demos for recently released titles. Because of the Nintendo Switch’s well-liked exclusive features and very affordable pricing, most gamers are also buying it. Nintendo markets its products using cutting-edge technologies. Additionally, several retail centres have been unable to provide Nintendo game console demos, where customers can play test games in gift shops. Since its introduction in 2017, the Nintendo brand has grown in popularity, outselling the PS5 and even the Xbox series. However, at the moment, PS5 is dominating the market (D’Amore, 2022). There is an online community for both the Nintendo Switch and PS5, where users can purchase titles at a discounted price for the Switch, while PS5 Plus subscribers may play two previous games and new demos for free.
Recommendation
The suggestion that follows could be beneficial to both brands. By letting customers pay for its products according to their capacities, PlayStation 5 can leverage and boost its profitability (cost-effectiveness). In order to gain or maintain a larger market share, Nintendo has to release a new system that is more feature-rich and sophisticated than the Switch and PS5. If Nintendo wishes to increase its market share, it should also target the non-gaming demographic using the blue ocean strategy. Sony has to make more aggressive investments in advertising and marketing and increase the number of deals it makes to keep its market share of the PS5.
Conclusion
In conclusion, the PS5 and Nintendo Switch are cutting-edge, competitive game systems. However, with the PS5 coming out in 2020 and the Nintendo Switch coming out in 2017, the PS5 has more cutting-edge and unique features than the Nintendo Switch (Koyama, 2023). This depends on several factors, including Ethernet, weight, graphics, and storage, among many others. As a result, the PS5 is currently outselling the Nintendo Switch. Nonetheless, as the 4Ps marketing mix illustrates, the consoles have several similar features. For instance, their distribution methods and marketing approaches are essentially the same. On the other hand, their pricing tactics and product characteristics differ somewhat. They vary somewhat in terms of their target market as well.
Reference
Koyama, Y. (2023). Present. In History of the Japanese Video Game Industry (pp. 245–273). Singapore: Springer Nature Singapore.
D’Amore, R., (2022). Console war: PS5 vs Xbox series X: a sentiment analysis.
Stead, M and Hastings, G, (2018). Advertising in the social marketing mix: getting the balance right. In Social Marketing (pp.29–43). Psychology Press.
Egami, H., Rahman, M.S., Yamamoto, T., Wakabayashi, T. and Egami, C., 2022. The causal effect of video game play on mental well-being: a quasi-experimental study among the Japanese population.
Grzybowska-Brzezińska, M., Kuberska, D., Ankiel, M. and Brelik, A., 2020. Consumer behaviour in a multi-attribute concept of a food product.
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