Microsoft Xbox Entering the World of Video Game Essays

3172 Words Feb 27th, 2007 13 Pages
Table Of Index

Microsoft: Entering the Gaming Industry 3
Microsoft Xbox 3
The Strategy 4
Positioning 4
Pricing 4
The Result of the 1st Round 5
The Next-Gen Gaming War Announced 6
The Economies of scale – What it has Learned 6
The Timing - Being the first on the market, an advantage? 7
Securing the Production Chain 8
Securing the Market – Microsoft Innovation Breaking Through 9
Securing the Market – Product Segmentation 10
Securing the Market – Japanese Game Developer 11
Launching The XBOX 360 13
Conclusion 15
References 16

Abstract
People start hearing the words "video games" 1970s, but it actually it already began 30 years before. The idea originally came from the imaginations of scientists in research lab in the
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Trying to seduce and attract gamers with low priced console it has sold about 8 million Xboxes (2003). Sony has sold 60 million PlayStations. Determined to show its grounds Sony announces its new version of Playstation2 called PSX, according to the industry experts it will be almost impossible for Microsoft to catch-up with Sony.
Trying to open the door by using incorrect equipment, according to filings with the Securities and Exchange Commission, Microsoft's Home & Entertainment division, where Xbox resides, lost $190 million in the fiscal quarter ended March 31, nearly twice the $97 million lost during the same period in 2002. Supporting this filling David Hufford, a product manager in Microsoft's Xbox group said "We lose money on every console we sell," Hufford said. "So the strategy is to make money selling software". All these software and service enhancements are intended to extend the life of the current console." But apparently the profit their expecting to get from software has become nothing but zero. This is because hackers managed to crack the Xbox security code and totally tears apart the software. Hackers can install almost anything into the Xbox. Pirate's software is not contributing anything both to Microsoft and software developers. No doubt Sony's has the same issue with software pirating, but note to remember Sony didn't sell its machine below the cost of production.

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