Business Analysis of the Microsoft Xbox Product Essay

Some might say that kids don’t get social skills with games, true, but many times you can have interactions or invite friends to play games on the Xbox.

All you really need to know is that both the PS4 and the Xbox One represent a significant leap over their predecessors. Some people in the industry are suggesting that the Xbox One and PlayStation 4

Product positioning is the most difficult aspect of Microsoft’s marketing strategy for the Xbox. Consumers know that Microsoft is a great company and most computer owners have positive brand images of Microsoft. This really helps Microsoft get a jumpstart on their new product. But, the hard task comes when Microsoft

In order for Microsoft to become the leader in the console industry, it is critical to know the kind of consumers that are going to be targeted. According to the Fundamental Marketing article by Isaiah King, the target market for Microsoft Xbox users focuses on three main components: demographic, psychographic, and behavioral (Fundamental Marketing 1). The demographic of Xbox users range from age, generation, and gender. The hardcore gamers age group range from 16 to 30 years old. However, generation plays a huge role in the demographics of the console. Students of 18 years and younger are aimed highly more than older people, as they are leaders of the digital innovation. This variable of the demographic is important, as this age group will be the future industry in new products.

Through the years of all the generations consoles Microsoft’s Xbox and Sony’s PlayStation both prove to be, arguably, number one. The flames of the console war since the release of the latest generation of consoles back in 2013 have been set ablaze by fans and gamers alike. Microsoft had a weak start with the Xbox One and with nonstop updates and quick releases they crushed their competition. What exactly makes Xbox better?

I am going to explain to you why I like to play Xbox. To me playing my Xbox is my favorite thing to do. I can do almost anything I want on it. I can watch movies, play videogames, talk to friends, and even surf the internet. Yes they are somewhat expensive, but I use mine all the time, so I easily get my money’s worth from it.

The head of Microsoft, Bill Gates, first introduced the console at the Game Developers Conference in 2000 and it was a huge success. Bill went on to tell everyone that the Xbox was not just another console, it was going to be the most powerful console to date (Marshall, R).

In 2008, the Wii outsold the PS3 and Xbox combined, indicating Nintendo’s strength in the market, as well as the growing eminence of female gamers as a target for game and console developers.

The XBOX is now a 6th generation video game console that is manufactured by Microsoft. The machine itself was released in November of 2001, just in time for the 2001 Holiday Season in the United States, then subsequently worldwide. The decision to manufacture and release the system was Microsoft's first plunge into the gaming console market and designed to compete with the Sony PlayStation 2, Nintendo's GameCUbe, and Sega's Dreamcast. By November of 2002, Microsoft launched the Xbox Live service that allowed players to play interactive games online (Gamer's Catch, 2006). Looking at the evolution of the system, however, we now know that the Xbox began to be discontinued in late 2005 (in Japan) and then in early 2007 in North America. The last game was released in August 2007, and even support for out-of-warranty consoles was discontinued in 2009, with all new faulty consoles replaced with Xbox 360. Xbox Live support was discontinued in April 2010 (Whitten, 2010).

In 2001 Microsoft creates the xbox original, which is the first of the three major gaming consoles. The Xbox one along with Xbox original and Xbox 360 complete the xbox trilogy. The Xbox original popularity explodes when Microsoft releases the console. The exclusive of Halo, an online first-person shooter game, is the primary reason xbox became so popular. In November of 2002

In July 1999, Microsoft legitimized its expansion beyond its core competencies, to invade the gaming hardware market with Xbox and made its impression on the thrill and action seeking needs of the sophisticated video gamers. It aimed at

The Xbox One has many strengths that can be used in order for it to become a profitable product.

Microsoft is trying to establish the Xbox One as the video game console leader in the Video Game Industry. The Xbox One is a third generation video game console for Microsoft. The video game industry continues to have steady growth. However,

Microsoft introduced the new console (Xbox 360) one year before Sony, the industry leader, unleashed the PS3. Microsoft with the first mover advantage built a large customer base and has the largest library of games. The PS3 console has the best raw power and blue-ray capabilities. Nintendo, although with the less advanced console (Nintendo Wii), has successfully distinguished itself from their competitors with an innovative controller whith motion-sensor capabilities.

However, when Microsoft started the development of its next generation console- the Xbox 360- it recognized the deficits and problems related to its initial strategy: the company was operating under too high costs in order to assure high product availability which was not the critical factor in this business. The nature of the console business is about providing the customer with a cheap hardware and a variety of games, in order to generate profits from games sales. Additionally, the first Xbox was released one year behind Sony’s PS2, Microsoft’s biggest competitor in the market. This delay resulted in a substantial loss of sales and consequently reduced game sales. Therefore, Microsoft learned that the Xbox 360 had to be launched ahead of Sony’s PS3. Accordingly, one relevant part of Microsoft’s new strategy was the “first-to-market” approach. Another essential change in Microsoft’s business strategy concerned its cost structure in the Xbox supply chain. Whereas the initial strategy focused heavily on reliability, Microsoft changed its strategy to achieving reduced costs and increased profitability. Additionally, the company insisted on owning the design of critical components, such as the microprocessor and the graphics chip, in order to “control its own destiny”. Therefore, the supply chain network needed to be redesigned in order to support Microsoft’s strategic shift. So as to reach the desired cost