Case | HBS Case Collection | July 2004 (Revised March 2007)

Sony EyeToy

by Anita Elberse and Youngme E. Moon

Abstract

In early 2004, less than a year after its launch, Sony's EyeToy, a unique video gaming concept, had become a tremendous success across Europe. Developed for use with Sony's PlayStation 2 console, the revolutionary technology allowed users standing in front of a small camera to interact with game objects appearing on a television screen just by moving their bodies. Sales for the first EyeToy product ("Play"), a bundle of the camera and software, exceeded all expectations. However, sales for the second product ("Groove") were disappointing. Was it time for the EyeToy team to rethink its product development and marketing strategy? How could the team sustain EyeToy's initial success and prove that the concept was not a fad?

Keywords: Games, Gaming, and Gambling; Growth and Development Strategy; Brands and Branding; Marketing Strategy; Product Launch; Product Development; Performance Improvement; Software; Entertainment and Recreation Industry; Europe;

Citation:

Elberse, Anita, and Youngme E. Moon. "Sony EyeToy." Harvard Business School Case 505-024, July 2004. (Revised March 2007.)