Microsoft Marketing Strategy--Xbox One Marketing Analysis

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microsoft MARKETING STRATEGY ANALYSIS Author Note This paper was prepared for Marketing, MG-GY 6073, Section 1376 and LVL, Taught by Professor James A. Cincotta. ABSTRACT The purpose of this paper is to analyze marketing strategy of Microsoft adopted in flagship product Xbox in console industry and research whether Xbox series product can triumph in the competition with PS4. This paper will be broken down to current situation of Microsoft and console industry, marketing strategy analysis used by Xbox one, final prediction of Xbox One’s performance in the future competition and recommendation of improving marketing strategy. MICROSOFT MARKETING STRATEGY ANALYSIS INTRODUCTION Microsoft, established in 1975, has now become an American multinational company that specializes in manufacturing personal computers and software but in the last 15 years Microsoft has also branched into consumer electronics such as phones, tablets and games consoles such as the Xbox, released in 2001 and its subsequent model Xbox 360, published in 2005 and Xbox One, the newest version of console came out in 2013. Xbox one, one of flagship product of Microsoft, plays a crucial role in the entertainment field, an indispensable part of Microsoft’s integrated strategy. ‘Games are the single biggest digital life category in a mobile-first world. And Xbox is a strong consumer brand with an incredible fan base’ quoted by a Microsoft Spokeswoman, illustrates the importance of Xbox one towards Microsoft. However, in console industry, there is a heated war mainly between Sony and Microsoft. Generally, PS4 of Sony beat Xbox both in sales number and popularity, and on the majority of websites players demonstrate more willingness to buy PS4 than Xbox. Players consider their choice based on comparison of them in price, available video game on each platform, performance of the game, etc.

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