Microsoft: Entering the Gaming Industry 3
Microsoft Xbox 3
The Strategy 4
Positioning 4
Pricing 4
The Result of the 1st Round 5
The Next-Gen Gaming War Announced 6
The Economies of scale What it has Learned 6
The Timing - Being the first on the market, an advantage? 7
Securing the Production Chain 8
Securing the Market Microsoft Innovation Breaking Through 9
Securing the Market Product Segmentation 10
Securing the Market Japanese Game Developer 11
Launching The XBOX 360 13
Conclusion 15
References 16
Abstract
People start hearing the words "video games" 1970s, but it actually it already began 30 years before. The idea originally came from the imaginations of scientists in research lab in the late 1940s. And now it has become and still one of addictive product in human history. In 1980s nearly 20% of U.S. homes had video game system, and more game licensers releasing new titles expanding the industry into billion dollar industry. Having a dark age period in 1982 1984, in 1985 1984 the industry revived and reaching an industry worth $2.3 billion with market share 77% owned by Nintendo.
Considered as a profitable business the industry has a lot of big Players ATARI, Nintendo, SEGA, Sony and even Nokia who started in Cell phones trying to make way to the Gaming Industry and the late entrant Microsoft. In This Paper writer trying to open the Microsoft Xbox the late entrant whose trying to make way to defeat Sony (market Leader at that time) and have the biggest market share in the gaming Industry. Will it be success?
Microsoft: Entering the Gaming Industry
The meeting between Microsoft and Capcom, a Japanese video game publisher, was going poorly. One of the Japanese game developers at the table in Capcom's Tokyo headquarters said, "We know the philosophy of Nintendo. Game is toy. We know the philosophy of Sony. Game is entertainment. What is Microsoft's philosophy?" Kevin Bachus, who was then director of
References: • Wall Street journal : o New Xbox Aim For Microsoft: Profitability o Getting Xbox 360 to Market • www.roughlydrafted.com : PlayStation 3 vs Xbox 360 vs Nintendo Wii • Computer World Blog : More Sony PS3 woes : Microsoft Releases XBOX 360 developer kit for the masses. • Tuck School of Business at Dartmouth-Glassmeyer/McNamee Center for Digital Strategies.