Hey,

with all the buzz going on with the new PS5, I assume that some interviewers might be inclined to ask a market sizing question regarding the playstation's market size.

I found this to be one of the most challenging market sizing questions for several reasons:

1) I know that it is a supply problem since demand < supply - however, guessing how many factories there are and how the output would be per day is close impossible (when trying to justify the assumptions made) - for instance, we would need to know how many months in advance sony started to produce the playstation

2) Segmenting by demographics is also quite daunting. I would assume that above the age of 40, the penetration is quite low. However, with the ages under it is really hard to estimate. The only way I could think about is a MECE issue tree like "want's to buy new console yes/no, buys xbox/ps/nintendo" but even that is not mece because people could also be potentially buying both

3) It is also hard to estimate a target market since the playstation has popularity across the globe - whether it be USA, Europe or Asia. The only segmentation I could think here is that the market will be centered on the developed world since it is a very pricy product.

How would you do that?

(edited)