Xbox Makreting Plan
Product overview: The xbox is one of the most incredible inventions that have reached the market place in the last decade. The xbox Console in a video gaming and multimedia platform brand designed and manufactured by Microsoft and the first model was launched in November 2001 in the USA.
The product is more than just a gaming device that is viewed through a computer monitor or television.The games are very interactive you are able to connect online to play and communicate with other people throughout the world. The target demographic historically for the xbox has been Males around the ages of 13-30, those who tend to spend more time watching internet content than traditional television. The actual xbox console is sold at a loss; the costs are recouped by game sale, online gaming membership and other xbox live sales. The most profitable demographic is young adult men aged 20-30. Executive Summary:This is about what you are going to do in summary, you write this after you have completed the rest of your research SWOT: Strengths| Weaknesses| * The Xbox 360 is huge around the world is one of the most recognizable product in the World * Strong Multimedia support – games, music, video, foxtel and sports also available * Large library of games available * Interactive over the internet – xbox Live * | * Actual hardware costs expensive * Actual game costs expensive * Significant membership costs for playing online * Third world usage limited due to cost and infrastructure capacity.
Opportunities| Threats| * There will always be new games for the Xbox 360 * Release of new Xbox ONE * Application of the new Kinetic motion technology to enhance interaction * More and more games introduced to the world * Growth of the web TV capacity – home entertainment facilities to include xbox ONE. * Chinese Government may relax gaming console distribution restriction. * Sony released new PS 4 onto the Market, which received positive reviews from gaming critics * PS4 is free to play online * Emerging mobile gaming market taking significant market share * New console manufactures such as Apple, Google and Amazon rumoured to be released at a much lower hardware cost base.
| Market Research: With the multimedia content accessible through the xbox live this demographic is easily expanding to take in a wider audience. The multimedia usage of xbox is now larger than the purely gaming demographic.Revenue generated by xbox live has been increased by 20% in financial year 2013 while that generated by the xbox console has been decreasing. The Microsoft Entertainment and Devise Division which covers all items within the xbox suite increased revenue by 6% in the financial year 2013. The original xbox console released in November 2001 sold in excess of 24 million units. The xbox 360 was first released to the market on the 22nd of November 2005 and before the year was over they shipped and sold 1.
5 million units to countries around the world.Sales for Xbox 360 in year five were greater than in year four, sales in year six were greater than in year five, and sales in year seven were greater than in year six,” said xbox Marketing chief Yusif Medhi. All of these sales have culminated in $56 billion in revenue and 77. 2 million consoles sold since 2005 to April 2013. This is approximately 20% more than Sony’s PlayStation Console sales. Microsoft attributes the continuing success to the 19 million “Kinects” enabled consoles sold since their release in November 2011.
Microsoft’s xbox consoles currently have approximately a 47% share of the total console market.Sales of xbox 360 consoles have slowed significantly recently, 29% in June 2013. This slowdown in unit sales which were in excess of 1. 1 million units per quarter can be attributed to the forthcoming release of the new xbox ONE console in November 2013. Xbox cumulative sales profile for xbox 360, live and Kinect systems upto Q4 2012.
Xbox cumulative sales profile for xbox 360, live and Kinect systems upto Q4 2012. Profit growth profile for Microsoft Entertainment and Devices Division, which includes the xbox suite of tools – upto Q2 2011.Profit growth profile for Microsoft Entertainment and Devices Division, which includes the xbox suite of tools – upto Q2 2011. Marketing Objectives: The imminent release of the xbox ONE console can lead to a significant increase in console sales. Simple peer pressure by the existing gaming demographic to upgrade consoles to the latest and greatest will be a key driver, this is a similar marketing strategy used by Apple with the continuous upgrade of their iProducts. With 77million existing xbox 360 consoles sold an achievable 12 month sales target for the new xbox ONE Console would be 20% or approximately 1.
million units per month. This would equate to a unit sales increase of 30% per month over the June 2013 xbox console sales. With the continuing increase in the market share of the xbox live multimedia platform a new emerging market needs to be targeted. This new market will see xbox ONE consoles included in all Home Entertainment Systems. This Web TV principal was one of the key reasons for Bill Gates approving the original xbox console business plan. This strategy needs careful implementation to ensure that our existing key gaming user demographic is not alienated.
With a 20% increase in xbox live revenue this could easily be expected to translate into a further 20% increase in the xbox ONE console sales, this market share is increasing on a month on month basis. Over the medium term targeting the Home Entertainment System market would be positive for market share and sales growth. Marketing Implementation Strategy: * For the gaming community target advertising via online interactive mediums such as Youtube – google, gaming sites, etc. You can track how many hits your xbox ONE advertising sites receive. For the Home Entertainment demographic advertising on TV showing the interactive capacity xbox ONE has, features such as Blue Ray Player, Online Movie Store, Internet access, Music Library.
Bibliography: 1. https://www. xbox. com/ Microsoft xbox official website. 2.
http://en. wikipedia. org/wiki/Xbox. Provides a good overview of the Microsoft xbox Console from its inception. Covers its market position and competition. Also provides a good overview of the characteristics of the xbox and how it compares to its market peers.
3. http://en. ikipedia. org/wiki/Marketing_strategy Covers view on what makes a good marketing strategy, the various ways and formats to deliver a marketing strategy. 4.
http://vr-zone. com/articles/china-to-officially-end-game-console-sales-ban-xbox-one-vs-ps4-all-over-again/44829. html . Article: China to officially end game console sales ban, Xbox One vs PS4 all over again. By Preetam Nath on July 11, 2013 8:01 pm. Discusses the possibility of the Chinese Government allowing the game consoles to be marketed to the 1 Billion Chinese consumer market.
. http://www. gamesindustry. biz/articles/2013-07-11-ps4-xbox-one-shortages-the-real-deal-or-marketing-ploy Article: PS4, Xbox One shortages: The real deal or marketing ploy? By Steve Peterson. Fri 12 Jul 2013 2:05pm GMT / 10:05am EDT / 7:05am PDT.
Article discussing the shortage of availability of both the new Sony PS4 Console and the new Microsoft Xbox One available in the market place. Questions whether this is a marketing play by the two key market competitors. Useful insight to possible marketing strategies. 6.