Game Theory: How Sony Gave PS3 Another Year of Profits with a Simple CES Announcement

Gaming News Category: PS3 News

Article Publish Date: 01-15-2012 08:08 PM -0800

Notsocommoncents: Way back in the 20th century, 1994 to be exact, a price war was raging between the Daily News and the New York Post for the price of New Yorks Daily Tabloid Newspaper. The lessons of this exercise in game theory provides insight into the ongoing console wars between Microsoft, Sony, and Nintendo. In addition, Sonys CES announcement that it will not be launching PS4 at the 2012 E3 conference (E3 is the video game industrys largest conference) is one of the best illustrations of game theory seen in recent years. (Disclosure: I am employed by Microsoft. I neither work on Xbox nor have insight into their product marketing, product strategy or product roadmap. This blog reflects my personal opinions as a practitioner of business strategy.)

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