XBox

Phillip T. Lee, Jonathan Nausner

03-dec-2003

strategic development

presentation

microsoft Xbox

THE PRODUCT

Introduced in November 2001

The Competition

Sony Playstation 2

Introduced October 2000

Nintendo GameCube

Introduced November 2001

The product

0

200

400

600

800

CPU Graphics CPU Memory Polygons/sec Memory BW

Microsoft XBox Sony Playstation 2 Nintendo GameCube

Qualitated Graph – Source: http://www.videogamemovies.net/specs.shtml

The product

Qualitated Graph – Source: http://www.videogamemovies.net/specs.shtml

Microsoft XBox Sony Playstation 2 Nintendo GameCube

Hard Drive yes no no

Controller 4 2 4

DVD upgradable yes no

Broadband enabled upgradable no

Networking yes no no

Dolby Digital 5.1 yes no no

The MARKET

20%

59%

21%

XBox PS2 GC

Source: The Edmonton Journal, May 2003

The MARKET

Source: Interactive Digital Software Assoc.-Bear Stearns, Informa Media Group

market size

2002:

$5.5 billion Video Console Software$4.3 billion Video Console Hardware

Since 2000 bigger than U.S. total Box Office Revenues.Expected market growth

$49.9 billion in 2001

to$85.7 billion in 2006

(all gaming products)

The MARKET

Best product.

Equal offer of games.

Two years in the market.

$ 2+ Billion spent on marketing/advertising.

...and still Nr.2.

Source: www.epinions.com

our research

• Internet

• Special Interest Magazines

• One-to-one Interviews

• Internet Forums

• 2 Focus Groups

• Natural Habitat Interviews (LAN-Party)

our research

• Internet Forums

our research

• LAN-Party

Target audience

Source: SRDS Lifestyle Market Analyst 2003

Single Males

Aged 18-24

Graduated Highschool

Some College

Demographics: Lifestyle “Play Video Games”

Meet Ben.

22 years old

A social guy who likesto hang out with his friends

Loves music and movies

First gaming console was aNintendo and if he would buyall of the gaming consoles but

has to settle for just one(the best one in his opinion)

Plays video games but doesn’t really considerhimself a hardcore gamer

He still likes to play sportsand go out

He isn’t easily impressedby commercials trying toreach his generation,he knows if the ad is phony

insight

People Play video gamesfor entertainment.

Duh.

insight

“A good video game is like a good book:

You don’t want to turn the machine off

until you have reached the last level.”

a Good video game lets

you immerse yourself

in the experience.

Playstation Ad “Double Life” – TBWA London

http://www.youtube.com/watch?v=6Bqq38WZctA

Nintendo Brand Ad

Nintendo Software Ad

strategy?

Playstation and Nintendo

TO CONVINCE people, aged 18-34

TO USE their console system

INSTEAD OF not playing games

BECAUSE they give you a break from everyday life

XBox Ad “Champagne” – Bartle Bogle Hegarty London

http://www.youtube.com/watch?v=mLPj8cgDOVk

strategy?

XBox

TRIES TO CONVINCE people, aged 18-34

TO USE their console system

INSTEAD OF not playing games

BECAUSE you should play more to have more fun.

But I already have a Playstation II.

play more?

What makes the

xbox

outstanding?

problems of the xbox

• playstation ii was out first.

• people do not know what

the XBox can do.

They know the technical features but not all understand how they improve the gaming experience.

• Games

XBox did not have enough good games in the first year. SOLVED.

• controller

The original controller was too big and unergonomic. SOLVED.

strengths of the xbox

• Best hardware

Potential

• Xbox live

Best online gaming service available

• systemlink

XBox is the only system that can be used in a network

• games

Halo. Producers develop with the XBox in mind.

insight

it is not important

how good a system is

in numbers and specs

but what it can do

for the game experience.

a new campaign

The new campaign – created by brand agency Landor – –  stresses:

• Games No brand ads but game ads with a brand messages.

• online and network ability

New Slogan:

IT’S GOOD TO PLAY TOGETHER.

BOOORING.

You just broke Rule Number Oneof video console advertising:

NEVERNEVER

NEVER BORE THEM.

and you missed the spot:

Why is it good toplay together?

IT IS MORE FUN!

recommendation

Convince

To buy

instead of

because

more potential

=more fun

because

more players

=more fun

Tone

Be better than

just good.

Be Exciting.

Be Boastful.

Kick some ass.

do not worry about the feelings of the

other consoles.you are in another

league.

Think of:

vs.

Think of:

vs.

Think of:

vs.

Have fun.

promotional idea

bundle xbox with free halo

and a 2-month-trial of

xbox live

• Bundle all the strengths of XBox

“Halo is an awesome game, but paying $ 300 [for the console and the game] to own only one game is just too much.”

• Promote upcoming Halo 2

“Halo 2 is like a license to print money.”

billboard

Thank you.