Evolution of the Xbox Supply Chain
EVOLUTION OF THE XBOX SUPPLY CHAIN
April 2, 2007
Contents
Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360
Section 2: Benefits and Risks of global launch of Xbox 360
Section 3: Benefits and Limitations of using EMS firms concentrated in China and an Analysis of the co-ordination efforts required
Section 4: References 21
Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360 by Anand Kangala
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 providing a console that would enable the gamers to push the skills and risk-taking prowess to mesmerizing limits much beyond what was then offered by its formidable champion players Sony and Nintendo. Two years later, with time-to-market clock ticking fast and loud, Microsoft had to work' its supply chain to line up and deliver large volumes of high quality products to the consumer market in time for the 2001 holiday season.
Gaining in popularity since its launch in 2001, the Home and Entertainment Division (HED) of Microsoft set its sights on developing the next-generation product the Microsoft Xbox 360 video game and entertainment system. The HED had the dual objective of exceeding the functionality and performance of the predecessor, and put in action the lessons learned by streamlining supply chain processes to keep the manufacturing costs low and guarantee delivery for the 2005 holiday season. It also consciously sought to reverse tables on Sony by launching its new generation game console Xbox 360 prior the launch of Sony's PS3 consoles. The changes in the supply chain that enabled this and the motivation behind the change are discussed in the following sections.
Xbox 360
As Microsoft began the Xbox 360 project
April 2, 2007
Contents
Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360
Section 2: Benefits and Risks of global launch of Xbox 360
Section 3: Benefits and Limitations of using EMS firms concentrated in China and an Analysis of the co-ordination efforts required
Section 4: References 21
Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360 by Anand Kangala
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 providing a console that would enable the gamers to push the skills and risk-taking prowess to mesmerizing limits much beyond what was then offered by its formidable champion players Sony and Nintendo. Two years later, with time-to-market clock ticking fast and loud, Microsoft had to work' its supply chain to line up and deliver large volumes of high quality products to the consumer market in time for the 2001 holiday season.
Gaining in popularity since its launch in 2001, the Home and Entertainment Division (HED) of Microsoft set its sights on developing the next-generation product the Microsoft Xbox 360 video game and entertainment system. The HED had the dual objective of exceeding the functionality and performance of the predecessor, and put in action the lessons learned by streamlining supply chain processes to keep the manufacturing costs low and guarantee delivery for the 2005 holiday season. It also consciously sought to reverse tables on Sony by launching its new generation game console Xbox 360 prior the launch of Sony's PS3 consoles. The changes in the supply chain that enabled this and the motivation behind the change are discussed in the following sections.
Xbox 360
As Microsoft began the Xbox 360 project
References: 1. Appendix 1 data chart, BLS: http://www.bls.gov/opub/ted/2007/jan/wk1/art03.htm 2. Thor Olavsrud, " Flextronics Relocates Xbox Manufacturing Facility," Business Internet, May 15, 2002, http://www.internetnews.com/bus-news/article.php/1129171 3. Ryan A., "Games outsourcing in China grows rapidly," MMORPG, January 22, 2007, http://www.qj.net/Games-outsourcing-in-China-grows-rapidly/pg/49/aid/80223 4. Evolution of the Xbox Supply Chain, Stanford Graduate School of Business. 5. Technical Case study : Enabling an Adaptable, Aligned and Agile Supply Chain with BizTalk Server and RosettaNet Accelerator, Aug 2005 –Microsoft IT Showcase 6. Manufacturing the Xbox 360 – Supply chain heroes make process a smash hit – by Douglas Gantenbein. 7. Next Generations Consoles At-a-glance. Wikipedia.org (North America).