Microsoft was recently ranked 49
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
This vision and strategic plan have revolutionized the gaming industry.
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.
marketing strategy, in large part, has failed to increase the market share due to a lack of focusing
on family-oriented buyers.