Importance of the Eye Toy product for Sony
The Eye Toy was a revolutionary product because the underlying
technology to interpret incoming video signals was clearly the first in the market.
The case indicates that the Eye Toy Play appealed to a broad audience both in
terms of demographics as well as gaming experience. Based on the consolidated
income statements for Sony Corporation in Exhibit 2 of (Harvard Case 9-505-024
page 13) the game business segment accounted for 61.5% and 60.7% of operating
income in 2002 and 2003 respectively which was second only to electronics from
2001 to 2003 in total sales and operating revenue, and so the Eye Toy is
strategically important to Sony.
Role of the Eye Toy play within Sony Computer Entertainment Europe's strategic objectives
Sony Computer Entertainment Europe strategic objectives involve
developing games different from other third party game developers and they strive to
be the first or the best in developing games("..Be first to market with a new genre,
create something special like Eye Toy, or be the best in an existing category like
the Getaway"). The product development pipeline for Eye Toy included new games
produced by SCEE ("Eye Toy required" games requiring use of the Eye Toy) as well
as games produced by third-party developers ("Eye Toy enhanced" games not
requiring its use but promising an enhanced game experience if used).
Reasons for the success of Eye Toy Play and failure of the groove
From a strategic viewpoint, the Eye Toy was innovative and different from
the competition. The Eye Toy play was su ...