Case Report of Microsoft and the Xbox 360 Ring of Death
Microsoft &
The Xbox 360 Ring of Death
COMM 5307
Professor: Ebarhim Mazaheri
Group 5
Liuquan Wang
Ning Ding
Wenjun Zhou
Keyue Zhang
Date: Jan 22, 2013
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Problem statements:
There are two main problems in Microsoft. The first is financial problem and market share of the Xbox 360. Microsoft suffered a great loss, nearly $2 billion loss for the
2006-07 fiscal year, because of major design flaws in the Xbox 360. The second is reputation of Microsoft, especially for Xbox 360. Because of the Xbox 360 ring of death, Microsoft suffered declined reputation and player’s disappointment. Even for a loyal Xbox lover who tried to fix it for a lot of times, he decided to sell it.
Furthermore, Microsoft had to decide how to leverage those assets, especially for
Xbox 360, to maintain its long-term strategic vision.
!
Problem issues:
1.
Cost cover of Xbox 360.
2.
Honest and responsibility.
3.
Personnel appointment.
4.
Declined marketing share.
5.
Disappointment of players.
!
2!
!
6.
The peripheral of game is less than Sony and Wii.
7.
The high quality but high cost Internet of Xbox.
8.
The contradiction between outsourcing and Microsoft.
9.
Competitor’s threats and press, and other potential competitors.
!
Industry analysis:
The video game industry is going throng significant growth. It is a large and growing market, including significant technological change, high growth rate, new product development and lack of a clear market leader. But it is hard to make success in this industry, which requires strong technology knowledge and intensive capital investment.
!
SWOT analysis:
Strengthens:
1. It’s no doubt that, Xbox 360 had strong product innovation capability.
2. Microsoft invested much money for Xbox 360’s launch, which helped Xbox 360 gain great initial success and high market share.
3. Microsoft’s excellent bran image among customers played an important role
The Xbox 360 Ring of Death
COMM 5307
Professor: Ebarhim Mazaheri
Group 5
Liuquan Wang
Ning Ding
Wenjun Zhou
Keyue Zhang
Date: Jan 22, 2013
!
!
Problem statements:
There are two main problems in Microsoft. The first is financial problem and market share of the Xbox 360. Microsoft suffered a great loss, nearly $2 billion loss for the
2006-07 fiscal year, because of major design flaws in the Xbox 360. The second is reputation of Microsoft, especially for Xbox 360. Because of the Xbox 360 ring of death, Microsoft suffered declined reputation and player’s disappointment. Even for a loyal Xbox lover who tried to fix it for a lot of times, he decided to sell it.
Furthermore, Microsoft had to decide how to leverage those assets, especially for
Xbox 360, to maintain its long-term strategic vision.
!
Problem issues:
1.
Cost cover of Xbox 360.
2.
Honest and responsibility.
3.
Personnel appointment.
4.
Declined marketing share.
5.
Disappointment of players.
!
2!
!
6.
The peripheral of game is less than Sony and Wii.
7.
The high quality but high cost Internet of Xbox.
8.
The contradiction between outsourcing and Microsoft.
9.
Competitor’s threats and press, and other potential competitors.
!
Industry analysis:
The video game industry is going throng significant growth. It is a large and growing market, including significant technological change, high growth rate, new product development and lack of a clear market leader. But it is hard to make success in this industry, which requires strong technology knowledge and intensive capital investment.
!
SWOT analysis:
Strengthens:
1. It’s no doubt that, Xbox 360 had strong product innovation capability.
2. Microsoft invested much money for Xbox 360’s launch, which helped Xbox 360 gain great initial success and high market share.
3. Microsoft’s excellent bran image among customers played an important role