Game On! Sony Plans for Biggest PlayStation Launch Ever With Steelwedge


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Sony PS4In the world of video-game consoles, the Sony PlayStation is undoubtedly leading the pack. In January 2014, PlayStation 4 (PS4) sales were nearly double that of its nearest competitor. The release of new game consoles comes years after their preceding versions, so significant planning goes into the launch by their manufacturers.

Sony Computer Entertainment America (SCEA) launched the much anticipated PS4 in November 2013. There was high complexity inherent to readying the system in time for the make-or-break holiday season; allocating to the right reseller channels; assembling the right combination of accessories and game bundles; and ensuring the product launches at right price point. Sony used Steelwedge integrated business planning software to connect all the crucial people,  processes and data to help it navigate their biggest launch ever—delivering an anticipated approximately 5 million units in the coming months—without cannibalizing the ongoing PS3 business.

The Steelwedge services team helped fast-track Sony’s internal planning process with the
implementation of the Steelwedge solution in a phased approach. The first phase incorporated demand planning and an executive engagement phase of the total sales and operations planning (S&OP) life cycle.

Phase two involved synchronizing Sony’s new forecasting strength via supply planning and collaboration with Sony corporate suppliers and telescopic planning. Telescopic planning is a Steelwedge feature that enables easy movement between weekly and monthly planning periods, allowing Sony a much closer, more frequent look at impacts to its supply and demand.

“Without the insights we gained from Steelwedge on channel and bundling optimization and well as potential PS3 cannibalization, we wouldn’t had as powerful a launch plan,” said Sree Vaidyanathan, SCEA’s  Director of Business Applications. ”Months ahead of the launch, we sold out $1.7 million in pre-orders. We are planning to sell approximately 5M units of the new PlayStation 4 console by April, and we are more confident in that forecast due to Steelwedge.”

Increased visibility from consensus planning at SCEA translates into better:

Profitability. SCEA forecast accuracy improvement from 60% to high ~90% immediately
drives better profitability—ensuring the right goods at right time and right place. Now,
Sony has enough data insight to push platform and SKUs to channels, more intelligently.

Market Share. Better consensus planning, powered by Steelwedge, helps SCEA make better supply/demand tradeoff decisions, due to more reliable data. The faster to market, the better the market share potential.

Scalability. The cloud-based solution from Steelwedge allows Sony to power its process
in scope with its evolving market.

Risk Mitigation. The proven, secure Steelwedge platform limits Sony’s IT exposure to
risks around data, business continuity and security.

To learn more about Sony’s implementation of Steelwedge, read the full case study here. Do you have any best practices to share around using the S&OP process to enable a successful product launch? Share your insights in the comments section!