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XBOX 360 Marketing Strategy

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In 2005, Microsoft shook up the marketplace - and the marketing industry - again with its non-traditional launch for the Xbox 360. Read Microsoft's Xbox 360 spin(http://news.com.com/Commentary+Microsofts+Xbox+360+spin/2030-1069_3-5706144.html) and address the following questions:

QUESTIONS:

1. What are the key elements of Microsoft's marketing strategy for the Xbox 360?
2. What are the similarities and differences compared to past product rollouts within Microsoft and compared to the rest of the industry?
3. Could Microsoft be considered one of the best and worst examples of marketing success in America during the 1980s and 1990s? Discuss.
4. Do any of the Microsoft strategies contradict future issues that Microsoft and other technology-oriented firms should prepare to deal with in coming years?

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Solution Summary

By responding to the questions, this solution discusses the key elements of Microsoft's marketing strategy for the Xbox 360. It also discusses the similarities and differences compared to past product rollouts within Microsoft and compared to the rest of the industry and if Microsoft could be considered one of the best and worst examples of marketing success in America during the 1980s and 1990s. Finally, it examines if any of the Microsoft strategies contradict future issues that Microsoft and other technology-oriented firms should prepare to deal with in coming years. References provided.

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RESPONSE:

1. What are the key elements of Microsoft's marketing strategy for the Xbox 360?

The headline reads:

"Microsoft had beaten its game console rivals to the starting line with a preview of its new Xbox."

"The software giant unveiled the Xbox 360 during a pre-taped MTV broadcast on Thursday night, edging out Sony and Nintendo to become the first to reveal details of a new console. The most anticipated feature among the Xbox 360's specifications is its high-definition picture display. Pricing for the device hasn't been announced yet, but executives have said the console will be shipped in Asia, Europe and North America by the holiday season. Microsoft timed the announcement to hit before the start of a major gaming industry trade show, the Electronic Entertainment Expo, set to take place in Los Angeles next week. The move pre-empts launches from rivals Sony and Nintendo, which plan to demonstrate their own systems at E3. The new systems are expected to revitalize the gaming industry, which typically sees an upgrade cycle in consoles about every five years. Microsoft is slightly ahead of that schedule, likely because it's eager to get leverage from the games foothold it got with its first Xbox, launched in 2001, and to get a jump on its competitors" (see http://news.com.com/Xbox+360+preview+gets+jump+on+rivals/2100-1043_3-5705436.html?tag=nl).

The elements of Microsoft's X-box marketing strategy are as follows:

? A key building block in the overall Microsoft brand strategy In revealing and promoting its new console through nontraditional means with multiple partners and six months before shipment, Microsoft stands to create goodwill with demanding gaming consumers and beyond. With a gamers-first approach that will create positive associations with its brand, the company aims to offset some of its negative branding in the PC market, where it frequently comes ...

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