Case 17 Microsoft X-Box work!
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Table of Content
A. Basic facts
1. Microsoft 2. pic Gaming Indurstry 3. Competitors + 5 year life musical rhythm 4. Xbox (Xbox 360 + Xbox extend!)
B. Case Study Questions:
1. 2. 3. 4. What Stage of the product life bout is Microsoft´s Xbox currently experiencing in comparison to other plucky console market products? Discuss how Microsoft is trying to implement a groth strategy in the games console arna. (using the Ansoff Matrix) What are the key sucess factors of open up the Microsoft Xbox Live! Plattform? (using the marketing mix 4-Ps framework) What are the key weaknesses of Microsoft Xbox Live! Business model?
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Basic Facts
Microsoft
Dominates in its core markets of run systems (PC) and desktop application software almost has monopoly power soaring revenues and profits have been healthy and steady Sales of PC software will not last forever! unrivalled day growth will stop Thats why Microsoft now has to look for new ways of future growth.
It has opinionated to enter the video-gaming industry
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Basic Facts
Video-gaming industry:
2002 Console and hardware gross gross revenue nearly 33% of the market The video-gaming industry is characterized by a 5-year cycle: the games console has roughly a 5-year life cycle before being replaced with new, improved technological hardware genuinely competitive area: many industry giants have suffice and gone: Sega has retrenched from games console market due to Sega Dreamcast flopp in 1999. forthwith they are only games developer The console industry sells its products at prices that are below costs and makes only money through the sales of games in the form of licensing fees
2 veterans are the Strongest competitors:
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1995 2000 2006 2002 2006
Basic Facts
recital of popular games consoles (roughly 5-year life cycle) 1/3
1989 Sega MegaDrive
6 YEARS
1995 Sega Saturn
4 YEARS
1999 Sega Dreamcast
5
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