Aug 17, 2015
FINANCIAL PERFORMANCE
OF MICROSOFT
2014 2013 2012
commerci
al
licencing
48%
Device &
Consumer
licensing
22%
Computing
& Gaming
Hardware
11%
Phone
Hardware
2%
Others
17%
REVENUE -GENERATION
Toys and Games
US$152.8 billion
Traditional Toys and Games
US$84.5 billion
Video Games
US$68.3 billion
Video Games Hardware
US$23.0 billion
Video Games Software
US$26.5 billion
Digital Gaming
US$18.8 billion
-0.3 -0.7 -0.1 -1.2
4.43.7
21.8
6.5
-8
3.5
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
% y
-o
-y
va
lu
e
gr
ow
th
(f
ix
ed
ex
ch
an
ge
ra
te
s)
Video Games: Microsoft Corp vs Global Market
2009-2013 Global Market
Value Growth
Microsoft Corp
Value Growth
A B
C
A:
The release of Kinect helps Microsoft to register growth in a contracting market.
C:
Positive growth, with sales boosted by the launch of its new generation console, Xbox one. However, Microsoft remains slightly behind global market growth with the expansion of digital gaming.
B:
• Wait for the release of the next generation of consoles
• Competition from the free-to-play market
• Weakness in Asia pacific, which grows strongly during the year.
November 2001
Original XBOX
console
SALES 24 million
November 2002
XBOX Live
April 2005
XBOX 360
SALES 77.2 million
May, 2013
XBOX One
Sensor webcam
Voice recognition microphone
Full T.V. compatibility
Streaming entertainment services
Unified interface for spoken commands & gestures
input from smartphones and tablets.
Exclusive bundles(free games included)
Big revealing show on MTV
Sophisticated packagingSponsored game
conventions
The Play Station 4 console outsold the Xbox One 2 to 1.
Xbox Gamers were outraged with the price and many switched to Play Station 4.
Price skimming strategy
$399 $499
• 16-30 age group• millennial generation• leaders of the digital revolution• Instant gratification, short attention
spans, and expert multi-taskers
46% 54%
• High usage rate • Social networking• High customer loyalty • They have a significant amount of influence
on rookie or recreational gamers.
• Social class and lifestyle.
• The middle and upper social class customers having disposable income available and use it for video games
• Tend to interact with other gamers virtually major league gaming (MLG) competitions.
• 9 million registered users worldwide.
CRITERIA PS4 WII XBOX
Backwards compatibility
Longevity
Games catalogue
Price & fees
Video capabilities
DVD & Blu-Ray support
Bundling
Complement of PC gaming
Target demographic
• Integration with Windows PC & Tablet
• Complete living room entertainment
• web-connected device that will connect to and record live TV, play films and TV shows, play Blu-ray HD discs and even allow Skype calls.
• Strategic brand management by Keller• Buddingmarkets.com• https://www.microsoft.com/investor/reports/ar14/index.html• http://www.xbox.com/en-IN/• http://assignm5.blogspot.in/• https://crdurancsumb.wordpress.com/2014/05/15/marketing-plan-xbox-
one/• Wordpress.com• http://www.ign.com/wikis/xbox-one/• http://www.theguardian.com/technology/