Connor Hakan Assignment 8 Sony Playstation Consoles
By Connor Hakan
October 3, 2015
Sony Playstation Consoles and Stock Price
As Sony continues to refocus as a company, the Playstation console business continues to be a growing part of the Sony’s identity. The chart above shows the historical stock prices and the times when Playstation consoles were released.
The original Playstation was released back in September 9, 1995. The console sold for $299, while the stock price of Sony was $24.79. Most would consider the original Playstation to be a success.
The Playstation 2 was released on October 26, 2000 at a price of $299. Sony’s stock price was still at a relative high at $87.07. The Playstation 2 was the most successful console Sony has released.
The Playstation 3 was released on November 17, 2006 for the price of $599. This was the most expensive console Sony released and it hurt the ability for Sony to generate a profit. At the same time, Sony’s stock price had started to fall to around $40.25. Sony made a mistake in price the PS3 so high. The high price created a chicken and egg problem for game development. Developers do not want to create games for platforms that do not have a big audience. Additionally, people do not want to buy console platform that does not have great games. The data points to a correlation between the failures of the PS3 and the downturn in stock price.
The Playstation 4 was released on November 15, 2013 for $399. The console has had a great start, but it is still unclear if the PS4 can start to help Sony’s Stock price. This data indicates that the PS3 did not help Sony’s stock price. Only now has Sony started to dig itself out of the hole it hug.