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Sony - PSP 2 ideas - View Post

Sky Render said:
There are a lot of components involved, it's true, but one of the most important catalysts for all other components is differentiation. A product which sets itself apart from its competitors can also draw in other demographics than the competitors do. More demographics means a larger user base. A larger user base means more games made. More games means more hardware sales, fueling refinement of that hardware and reduction of price for making it.

Products which do not differentiate themselves do not have a significant impact on their competitors. Though this can be combatted with secondary measures (such as having a larger distribution base than your competitors and aggressively marketing to get an early lead), it ultimately becomes a battle of attrition. The product which came first maintains its market stronghold by virtue of inertia, while the undifferentiated product fails to make a noteworthy dent. This applies to software as well, and is a big part of why no MMORPG which uses the World of WarCraft model has triumphed over World of WarCraft in terms of subscription base.

As for if Sony would risk innovation, they're not in a position where they'd be willing to. Large companies fear loss of resources more than small companies, and a failed attempt at disruption can sink a company. They will all but universally opt to take the safe route of improving what's already there over attempting to establish a new market and temporarily (if successful) or permanently (if not successful) alienating their existing demographic in the process.

Point taken, and completly agree there Sky Render. Though about Sony not taking risks I would slightly have to disagree on, Sony is known for taking risks, which is what puts them where they are now. Who would have thought Sony would be come into the Gaming indrustry with the Playstation and do so incredibly well? They took a risk with BluRay, with the Playstation brand, with Walkman, with entering the Cellphone Industry, and they have pretty much succeeded in a majority of it (Excluding BetaMax and a few others)

But I must say, Im very impressed you didn't really take offense to what I said or react defensivly like so many people here do. Much respect there, good to see an adult around here not exploding agressivly when someone dares to quote them!

Good reply and really good points you stated. I'll admit I do look at the whole differentiation aspect different now, in a good way... So thanks for explaining yourself a little better there :)