Company Introduction

Xbox is actually a product that is introduced by Microsoft keeping in view the market demand and inclination towards the video games. Xbox 360 is the advanced version of the preliminary Xbox that was introduced in the markets of Japan, Australia, Europe and North America at different times between year 2001 and 2001. The Xbox also gives the gamers a facility to play online games by logging on to its e network. The introduction of Xbox was in fact a first step of Microsoft to enter into the entertainment zone, in which it proved very well hitting the other most demanded game items as well.

Statement of the Marketing Goal

The company has a very strategic vision as it has controlled its movement in the Microsoft core PC software business, shifting to the attractive and worth paying world that is growing market of video games.

SWOT Analysis


• High definition technology introduction in DVD players made it second to none in this arena as well.

• The advanced versions introduced by Microsoft are not entirely new rather the extension of the previous one, which makes it easily executable and operational.

• The prices are balanced as compared to similar products introduced by the competitors.

• The great innovation in online games as the players experienced such games for the first time as they are first of their kind with no inspiration from any other idea.


• The hardware used for production of Xbox is sensitive as well as expensive.

• There is imbalance in flow of production.

• The competition of the Microsoft in gaming zone is direct with Nintendo owing to the similar intesity od customer base.


• The new markets are being penetrated in this field.

• The over emphasized partnerships especially with the studios of hollywood would prove good in a long run.

• Bundling  in untouched markets could gather the remarkable sales especially in the regions of Asia that is lacking such technologies.


• The European aggression because of the untrust that has taken roots because of the least innovation and monopoly of Microsoft PC’s.

• The competitor companies are offering the low price services similar in kind to Microsoft.

• Microsoft has applied the similar hard ware complication in the Xbox as that of its PC’s that could harm its popularity especially in the regions where customer care is not present.

Who are competitors?

Microsoft has always been facing a tough competition in all its expert fields; same is the case with Xbox being a Microsoft product. The competitors are as follows;

• Sony; has a play station compatible to Xbox, its microprocessor is 300 MHz lower than that of the Xbox that is 733 MHz, but the price range is equal for both.

• Nintendo‘s Game Cube 485 MHz Chip microprocessor is also very popular with a lower price that is almost 100 dollars less than that of Xbox and play station.

• Sega’s product is dream cast which id of 200 MHz processor with a very affordable price almost half of the Xbox but its popularity poses a very tough competition.

Marketing Objectives for the Project

Marketing objective for the Xbox is much focused that is to lead the global market through diversified marketing campaigns. The marketing goal of the Xbox includes digital marketing Xbox live and video games as well emphasizing the local and international businesses through the international subsidiaries. 

Overall Objective

The over all objective of Microsoft Xbox is to provide their customers an unquestionable product owing to the high price demand by the Microsoft as compared to its competitors; being at least at a better standard as compared to them regarding the quality. The company innovation team is continuously working on its versatile operability by designing latest TV connections along with the specialized controllers and technical capability. The overall objective in the essence is to give the gamers worthy experience of gaming in comparison to same applicability at the PC’s.

Strategic Objectives for Every Primary Objective

The inclination of the target markets towards the video gamming has made different companies acquire the hubs to earn out of that business; same is the case with Microsoft Xbox.  The strategic objectives are being gained through the application of  tiny but noteworthy steps like removing the sexual content from the games replacing that by some idealistic figure. The company is very keen at its every step as in this type of fast growing market there are chances to loose the reputation at a single mistake made in either software or hardware as warranty doesn’t works there to regain the trust of customers. The company has been maintaining a very mentionable balance between the technological technicalities as well as the customer’s demand. [adsense]

Target Market Segments

The company has prioritized the targets according to the feed back got. The main target is the men gamers who don’t even stop to sell their computers to full fill there desire of gaming addiction. The company is effectively extending its network to the non traditional customers being of the view that people of non traditional areas are attracted more towards such innovative products. The multimedia features are specifically incorporated to attract the small percentage of the female gamers living with the male gamers. Its features like any other hard disk storage and i pod like features make it popular among all the people of almost all ages especially children and men.

Marketing Mix

• The Xbox is mainly the product or console of Microsoft but it is gradually upgraded to the new versions with the passage of time.

• Xbox 360 is the most advanced and innovative version of Xbox.

• The Core system is without hard drive and original games with wired controller.

• Connection cables, remote control, head set and wireless controller being 25 % expensive as compared to the traditional Xbox.

• Online Xbox is also the advanced version of Xbox.

• Traditional Core system is being sold at $300 as it is wired without original Xbox games.

• Advanced Core system is provided with the advanced facilities so its price is about $400.

• Mainly the Xbox is marketed in Europe, Japan, Australia and North America. 

• Xbox is also imported to the other countries where it is demanded especially in different regions of Asia but the technological matters are difficult to be dealt there and once it’s out of order it is difficult to be revived back to normal.

• The Xbox games can be played online any where in the world.
• All of the marketing tools are used for promotion.

• The main promotion is done through its web site, where the promotional games are present that can be played online.

Main strategies

The company is completely focused on the video gaming trends of such a sizable market. The reason behind the tilt from PC’s business to entertainment is to attract the spending trends of public towards home entertainment. Beside the other market matters the company also aimed to dilute its charges put by the competitors because of monopolizing the windows business. The vision of the company would broaden the image of the general public against the manipulation that the company lacks innovative trends. The premium pack introduction by the Microsoft is mainly to attract the majority of the gamers as it will be provided with the wires, cables, T.V connection, Hard disk with old versions of Xbox games, HD display, videos, music and much more. The price cutting strategy is being attained by the company to attract the market share but it might take the company to losses.

1. Market Penetration

According to the most recent analysis the market of penetration Xbox despite its expensiveness is 20 % of the whole market, which is not an acceptable rate as Nintendo has remaining 31 % and play station 3 has 49 % that is highest market share and thus market penetration.

2. Market Development

The market development of the product is strongest in Europe and United Kingdom owing to the strong fan base. But the market in Japan is over taken by Sony but still the customers of the Xbox are there; though the percentage is very low.

3. Diversification Strategy

The company is planning to introduce the Xbox to the nontraditional areas to attract the customers from there. This would be very helpful for diversification of the product. More over Asia is being emphasized because there is a strong fan base there for play stations which could be shifted to different product that is Xbox. The packages like that of premium packs are introduced in those areas where expected sales are not achieved. 

4. Monitoring and Control

Monitoring and control is emphasized by company especially in the area of technological innovations and experimentation. The introduction of different packages and deals of Xbox is the result of monitoring and control.
Microsoft is focusing a big deal of budget on innovation products and technological advancements in the Xbox. The budget is distributed among technology, promotion and innovation.


• "Putting the New Xbox Through Its Paces" by Walter S. Mossberg and Katherine Boehret, the Wall Street Journal (November 23, 2005)
• Robinson, Martin (2009-06-04). "E3 2009: 360 to Stick Around Until 2015 – Xbox360 News at IGN"..
• Bunker, Adam (2010-06-21). "Xbox 720 set to launch at the E3 expo in June 2015 | T3 magazine"
• "When Worlds Collide" by Dave Salvator (November 19, 2001)
• "Xbox 360 Price Announced: 2 Packages, $299.99 and $399.99" XB360info(September 15, 2005)
• "Strategic use of IS by Microsoft and Sony for development of consoles."  by Wonko, Google Answers (April 4, 2005)
• "Microsoft set to lose $126 on each Xbox 360 console" by Nicole Stiles(November 25, 2005)
• "Confirmed: Sex minigame in PS2 San Andreas" by Tor Thorsen, GameSpot (July 15, 2005) "Federal Videogame Regulation Proposed" By Wade Steel, IGN (November 29, 2005)
• Miller, Paul (2010-08-20). "Xbox 360 S 250GB hard drive sneaks into stores, Microsoft cackles as you fall into its trap (update: official)". Joystiq.
• "The Ups & Downs of Microsoft’s Xbox 360 Marketing" Game Daily Biz(October 31,2005)