Why Did The Xbox Launch

The Xbox launch was mainly a “strategy to move beyond the PC market”. Microsoft was ready to release their first fully computing system in order to “develop into living rooms worldwide.” By 2001, Microsoft was able to envision one of the most technological advanced consoles. They “outclassed any current existing system” by developing a high performance, easy- to-use platform that incorporated the first Worlds’ integrated high speed gaming network: the Xbox Live. However, Microsoft was making a significant commitment in the electronic entertainment industry, and still had still to develop a more advanced hardware and software. There were two main competitors in this business: Nintendo and Sony. Nintendo (1980s) was a “strong franchise
It retailed at a price of $149. Additionally, Sony was the current leader and had the largest software library. It was also considered along with the Xbox part of the “family of entertainment” because the PS2 was able to play DVD, CD and videos. Furthemore, Play Station 2 released an online adaptation kit on 2002. Sony accounted for the oldest technologically advanced platform. In 2002, Xbox wanted to release the Xbox Live in Korea for several reasons, but mainly because almost 65 percent of Koreans owned a PCs in their homes and, the gaming market in Korea was estimated to have a revenue of $2.8. billion. However, Korean gaming consoles were extremely low and Microsoft knew that entering that market would mean a lot of “educating and communications”. Microsoft stated that with the correct marketing strategy approach the Xbox could be a big success in Korea. The Xbox team needed to approach two main questions during their research in Korea. First, they needed to develop a Golden Portfolio, and secondly to determine the importance of localization. To do so, they profiled and analyzed three defined segments in the market-