Freakomon Essay

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Buyers are influenced by high switching costs when choosing which console to purchase. With a console being an investment that enhances the experience of games Freakomon is left competing for the last 28% of the market after Playsphere’s unsuccessful launch. President Ryotaro Kurosawa recognised this challenge and has therefore opted to expand the target market with Rashmon to a non-typical customer base males. The bargaining powers of customers has increased alongside access to information primarily from the internet about developing technologies such as the 3D graphics of the PlayStation 2. This is where Playsphere went wrong as they focused on the buyers influence on price and forewent attention to complex functionality that the traditional market was seeking. Both of Freakomon’s main competitors are relatively new entrants who quickly dominated the market due to their backgrounds in computing. Microsoft’s rumoured 1.5 billion investment in Xbox overcame capital as a barrier to entry in the gaming console world. Playsphere struggled to fend off Sony’s PlayStation 2 which already had a customer base from the first console and a strong brand identity for realistic graphics. Playsphere attempted to match the added functionality of DVD player with its …show more content…

This puts Freakomon at an immediate disadvantage as they ‘base designs on existing technologies’. Freakomon intends to face its branding challenges after Playsphere’s failure by steering away from the multifunctional controllers of its current competitors who were fundamentally offering similar products. with Rashmon that Freakomon intends to fight by lowering the price and expanding their target audience to cover a potential loss of ‘traditional’ customers. To stay on top of current rivals they will Focus on the unique selling point of simple design and fun to play

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