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1. Imagine you are Kazuo Hirai head of Sony Computer Entertainment Inc. From your perspective, how attractive does the videogame industry look in late 2008?

2. As the case suggests, Sony has 3 main strategic options when it comes to the Wii. Pick the one that you think it's best and explain your choice.

1. Option #1: Stay the course and ignore the Wii

1a. What would Sony try to achieve with this option?

1b. What are the advantages of this option?

1c. What are the main challenges/risks associated with this option?

1d. What is the resulting positioning vis-à-vis the Five Forces if Sony were to pursue this option?

2. Option #2: Embrace and extend the Wii

2a. What would embrace and extend mean? What is the logic of this option?

2b. What are the advantages of this option?

2c. What are the main challenges/risks associated with this option?

2d. What is the resulting positioning vis-à-vis the Five Forces if Sony were to pursue this option?

3. Option #3: Target a new market segment

3a. How should Sony pursue this option?

3b. What are the advantages of this option?

3c. What are the main challenges/risks associated with this option?

3d. What is the resulting positioning vis-a-vis the Five Forces if Sony were to pursue this option?

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