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marketing - Xbox 360 Company Microsoft was recently ranked...

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Xbox 360 Company Microsoft was recently ranked 49 th on the Forbes Fortune 500 with sales of 13.3 billion. However, Microsoft saw the ability to diversify its product line by entering into the video game market. With the advent of Xbox©, Microsoft was no longer limited to the software industry and was better able to compete with rival companies such as Sony and Nintendo. Microsoft’s values are: As a company, and as individuals, we value integrity, honesty, openness, personal excellence, constructive self-criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for technology. We take on big challenges, and pride ourselves on seeing them through. We hold ourselves accountable to our customers, shareholders, partners, and employees by honoring our commitments, providing results, and striving for the highest quality. Bill Gates, founder and CEO of Microsoft Corp., was on site for the official launch of the first Xbox on the night of November 14, 2001. Microsoft saw a huge success over the first few weeks by selling over one million gaming systems. Over the next few years, Microsoft saw continued success and soon launched Xbox360 in 2005. Xbox 360 is equipped with online capabilities that allow users to compete against other players online. While at the launch in Japan, Bill Gates said "Broadband online video gaming is on the verge of becoming as revolutionary as 3-D gaming was just a few years ago," Gates said. "The broadband connection in every Xbox is the key that unlocks new worlds of play, where friends and opponents are everywhere." This vision and strategic plan have revolutionized the gaming industry. However, there was an apparent gap in the consumers of this product which is mostly limited to “gamers.” Recently Microsoft, and specifically Xbox© have made attempts to market the Xbox360 to a more family-oriented segment of the population. The new version includes more arcade style games and even allows the user to download episodes of Looney Tune’s and Blue’s Clues. Their marketing strategy, in large part, has failed to increase the market share due to a lack of focusing on family-oriented buyers.
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Product Situation Microsoft’s Xbox 360 is a video game console that offers high-definition graphics, an extensive library of the latest games, and a connected community of gamers through its Xbox Live service. The Xbox 360 comes in several different SKUs ranging from $280 to $450 with some variance in hardware specifications. The system’s parts alone cost an estimated $525 before assembly and a recently expanded hardware warranty has cost Microsoft an estimated $1 billion. However, the hardware itself is not meant to drive profits. That responsibility rests on the Xbox 360’s software. A strong lineup of games targeted towards a mature audience has driven Xbox 360 sales. On September 25, the long-awaited blockbuster hit Halo 3 launched, selling 3.3 million copies and propelled Xbox 360 hardware sales to 527.8 thousand units, toppling the market-leading Nintendo Wii for the first month ever.
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