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  • Essay / Xbox 360 Marketing Strategy - 785

    1. What are the key elements of Microsoft's marketing strategy for the Xbox 360? Microsoft introduced the new Xbox 360 using a direct-to-consumer approach, putting it in the crosshairs of its target market 4 days before its competitors launched. This direct-to-consumer strategy gave the new Xbox an edge and transformed the video game industry's marketing and product development practices. The software giant revealed the Xbox 360 during a pre-recorded broadcast on MTV and revealed the Xbox 360 to consumers four days before Sony and Nintendo were the first to reveal details of a new console. Microsoft "jumping the gun" was a ploy to leverage the gaming foothold it had gained with its first Xbox, launched in 2001, and to get a head start on its competitors. By revealing and promoting its new console through non-traditional means with multiple partners and six months in advance of shipping, Microsoft was able to create goodwill with discerning gaming consumers and beyond. Talking to consumers now and having the Xbox 360 in stores before the end of 2005, probably well before new devices from Sony or Nintendo, will give Microsoft a considerable lead in the market.2. What are the similarities and differences to past product deployments within Microsoft and to the rest of the industry? The direct-to-consumer strategy was very different from how Microsoft normally rolled out new products. Usually a laggard when it comes to gaming technology, this has given Microsoft a perceived advantage over its competitors. Microsoft's goal was to decrease sales of the Xbox1 and Playstation 2, as well as gain an advantage over the upcoming Playstation 3. Microsoft's competitors are limiting the company in terms of price and performance. Therefore, Microsoft needed to provide a console that gave customers a gaming experience at least as good as its competitors at a price they are willing to pay. Microsoft had to come up with a platform that was just as compelling, even though it would hit the market six months early. Microsoft has benefited from the establishment of its competitors in the video game market and the growing acceptance of video games as a leisure activity around the world.3. Could Microsoft be considered one of the best and worst examples of marketing success in the United States during the 1980s and 1990s? Discuss.In 1989, Microsoft overtook Lotus to become the world's largest software vendor. At that time, the company had the widest range of software products and applications as well as the highest profit margin in the industry, almost 25 %..