Situation Analysis For Microsoft Xbox

The network effects in the video game industry are derived from the console system that is sold to consumers. If a company is able to increase penetration in this arena, though at-cost/ below-cost pricing or pull created through the development of desirable content, it can potentially lock in the added value of the video games sold for the system. Which is to say, the console locks-in the network effects in the industry and the games serve to reap the profits. The video games, however, may present something of a challenge in that they can be somewhat easily replicated by competitors. Nintendo used an encrypted chip system to reduce this possibility.

After the acquisition of EB Games, GameStop rose as the leading video game retailer in its industry. In an effort to sustain their position, GameStop will have to tackle several technological and sociocultural issues that have arisen from its competitive environment. The strategic objective we wish to accomplish in this analysis is to formulate a viable strategy that will continue GameStop’s growth in the industry to remain as the go to video gaming store for the video gaming enthusiast.

Product positioning is the most difficult aspect of Microsoft’s marketing strategy for the Xbox. Consumers know that Microsoft is a great company and most computer owners have positive brand images of Microsoft. This really helps Microsoft get a jumpstart on their new product. But, the hard task comes when Microsoft

• Every company produce video game for different consoles, consoles are developed new generations fast, game developer should compete to gain license for new generation console.

In order for Microsoft to become the leader in the console industry, it is critical to know the kind of consumers that are going to be targeted. According to the Fundamental Marketing article by Isaiah King, the target market for Microsoft Xbox users focuses on three main components: demographic, psychographic, and behavioral (Fundamental Marketing 1). The demographic of Xbox users range from age, generation, and gender. The hardcore gamers age group range from 16 to 30 years old. However, generation plays a huge role in the demographics of the console. Students of 18 years and younger are aimed highly more than older people, as they are leaders of the digital innovation. This variable of the demographic is important, as this age group will be the future industry in new products.

To start off Xbox has backwards compatibility. This means that the new console, the Xbox one, can play games from the old console, the Xbox 360. This is a vital feature so there can be less clutter and no effort of having to switch inputs. While it can play select games from the 360, the One cannot play original Xbox games

The interface for the Xbox one is excellent because of how organised it is. On the Xbox you can easily find your games, social media, and the store. The Xbox one when you go from one app to another you hear a nice calm whooshing sound that isn’t annoying or can get stuck in your head. That is the exact opposite with the Playstation the sound is a bloop it is very annoying and it can get stuck in your head. Another great feature is the keyboard on the Xbox one it is very easy access. The keyboard on

Bargaining Power of Suppliers: The bargaining power of suppliers in the industry is low. There are numerous suppliers in this industry, and the large department stores have the ability to negotiate for the lowest prices. In addition, the switching costs are low, as the products are not highly differentiated. There are a large volume of purchases in the industry, allowing the department stores to exert even more power over the suppliers.

Bargaining power of supplier: High levels of competition among suppliers act to reduce prices to producers. This is a positive for Ford Motor Company. Standardization of parts allowed Ford to reduce dependency on fixed supplier/vendor which goes into producer’s favor.

To attempt counteract this cyclical slowdown, EB games have introduced an ever-growing variety of accessories with games to increase the revenue raising capacity of their respective consoles, as well as maintaining the loyalty and attention of a fickle gaming public. Some types of games have been released, with specialty controllers to great success, mitigating the expected lull in sales in the lead-up to new consoles. Recently however, the competition has become slightly skewed. Nintendo’s newfound dominance of the market is causing some headaches for Sony and Microsoft.

The suppliers get the advantages of making their products be showcased for the consumers thru these retailing outlets. A wider scope of retail outlets could mean wider scope for the brand recognition of the seller’s products, that is why these retailing giants has more power than suppliers. But when it comes to distribution, having a strong supplier is important, the company be better over competitors when it comes to qualitative factors such as on time deliveries on their branches and wider network of

Question: Was Microsoft's decision to enter the game console business a good decision? Based on: Microsoft Xbox Online. University of Michigan Business School Case Study.

Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360 by Anand Kangala

Another strength that the Xbox One has is that it is financially backed by Microsoft. This company is very successful and can continue to finance the Xbox One, even during times in which the brand is having any difficulty breaking even or making a profit. Microsoft is also one of the most prominent technology companies in world, which is due in part to its willingness to continue to innovate through research and development. Because of this, many of Microsoft’s technological achievements have been incorporated into the Xbox One. For example, the Microsoft Cloud, which improves the quality of Xbox Live for many gamers as it speeds up load times and causes no host advantage. Microsoft’s achievements

Microsoft is trying to establish the Xbox One as the video game console leader in the Video Game Industry. The Xbox One is a third generation video game console for Microsoft. The video game industry continues to have steady growth. However,