Microsoft Marketing Strategies for Xbox 360: Best and Worst Example of Success

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

Microsoft is following a new and unique marketing approach to have a competitive advantage in the industry. For example in the computer gaming hardware industry, a new product is generally unveiled first to partners and developers behind closed doors, then to other industry players and analysts at events like E3, and finally to consumers a couple of months before the release. However Microsoft eliminates all these stages and offers Xbox directly to consumers before all other major players like Nintendo and Sony. This helps the company to gain significant market share in a market whose product cycle has a front-loaded revenue stream and the firm can also be able to take the advantages of brand switchers in the near future by creating a strong brand equity. The company also collaborates with other electronics giants to collocate its next generation x-boxes with high definition TVs and makes new agreements with other industry partners to supports its brand with interactive promotional campaigns.

2. What are the similarities and differences compared to past product rollouts within Microsoft and compared to the rest of the industry?

The current brand strategy is very similar to the company's Windows XP campaign. But Microsoft is trying to change its usual dominant, static and less innovative player image with the new game console. The company is tying to build a frenzy of community speculation and support by acting like other successful manufacturers and imitating their strategies. For example Sony is ...