3D Gaming Project:SCEA Gaming SBU

Derek Montemayor, Mike Smith, and Lena Ramos

Project Management Office

April 13, 2010

Overview- SCEA

Mission Our goal is to make a family of products that

completely changes the definition of home entertainment… entertaining a broad audience.

SCEA is responsible for keeping PlayStation growing and thriving in the United States and Canada, through innovation as well as maintaining and building upon current product offerings…

Overview- SCEA

Product Portfolio: PS3, PS2, PSP PlayStation Network (PSN) & PlayStation

Home Exclusive Content: Unchartered, Gran

Turismo, Resistance, God of War, LittleBigPlanet

Other: Minis, Comics, PSN Original Programming

Overview- Projects On The Horizon PlayStation Motion 3D gaming (partnership with Sony Global) Partnership w/ Netflix HD-supported games PS slim Remote PS HD TV Streaming Games Bluetooth connections to cameras, printers,

devices

Portfolio ProcessPortfolio Steering Committee

PMO Oversees Projects in Portfolio

Portfolio Process Portfolio Steering Committee/ PMO

Adjusts selection criteria quarterly Prequalification:

Selection Criteria Pre-weighted; 5-point scale

•Strategic fit •Competitive advantage•Market attractiveness (N. America only)•Core competencies- what resources needed•Technical feasibility•Financial reward vs. risk; cost/benefit analysis

Selection Criteria

1. Length of project2. Which product line does the project support? 3. What type of function does the proposed project aim to support?4. Expected time-line of ROI (beginning at completion of project):5. Expected NPV in one year6. Estimated required funding7. Risk-reward bubble analysis8. Predicted market size for type of product supported by project9. Projected % change of market share owned by the specific project or product supported by the specific project10. Potential for total market growth, including competitors, i.e. sports games market, RPG-style games market.11. % of resources expected to be dedicated to project12. Percentage of total project cost devoted to labor costs13. % outsourced resources

Selection Criteria

A B C D

5 X 0-3 months

4 X 4-6 months

3 X 7-9 months

2 X 10-12 months

1 >12 months

1. Strategic Fit- Length of project

Current Portfolio Q2 2010• SBU Gaming bi-weekly PMO meeting (April 1st, 2010)

•Review current projects (A, B, & C)

•View results of new project entrants (Project D)

•Add/Hold/Cancel decisions on projects during review of selection criteria

•Add Project D to Portfolio

•No Hold or Cancel decisions

•Document changes and inform the proper channels of all changes made (ex. Budget, Schedule, Resource)

•Project B and C need to go through our change management plan.

Portfolio Priority Results Q2 2010  A B C D

1 5 4 2 3

2 5 1 4 5

3 5 5 4 4

4 2 3 3 3

5 4 3 2 3

6 4 3 2 3

7 2 4 1 5

8 5 3 3 4

9 4 2 2 5

10 4 2 3 3

11 5 3 2 4

12 3 3 4 4

13 5 1 1 3

Total 53 37 33 49

SBU Q2 2010 Funding (after adding project D)

Project Delivery 1Q 2Q 3Q 4Q TotalQ1 2011

Project A 30-Jun30-Jun $2.00 $2.00 $2.00 $2.00   --   -- $4.00 $4.00   --

Project B 31-Dec31-Dec $1.00 $1.00 $2.00 $2.00 $1.00 $1.00 $2.00 $2.00 $6.00 $6.00 - - 

Project C 31-Mar31-Mar -- $1.00 $1.00 $2.50 $2.50 $2.00 $2.00 $5.50 $5.50 $1.50 $1.50

Project D 31-Dec31-Dec -- $1.00 $1.00 $2.50 $2.50 $2.00 $2.00 $5.50 $5.50 - - 

Sunk Cost in other completed projects 30-Mar30-Mar $3.00 $3.00          $3.00 $3.00   

Total Committed Funding -- $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $6.00 $24.00 $24.00   $1.50$1.50

  Note $ in Millions          

SBU Gaming Portfolio Q2 2010

Project D Risk Management Plan (RMP)• Follow the RMP in place for all projects to maintain a level of consistency

• Inputs of RMP will define the level of risks

• Resource and schedule impact information

• Identify key interchanges

• Roadmap for PM of high priority areas needing focus.

• Make/Buy Decision based on the SWOT

•Strength in marketing - Use internal resources

• Weakness in market research - Outsource

•Maintain the feedback loops to the groups that will use the risk information.

• Historical data will provide lessons learned

• Feedback provides ability for PM to plan for avoidance, transfer, or mitigation of risks.

• Risk reward bubble analysis. (Project D classifies as a Pearl with a high reward and high success chance)