Stepping up with Xbox one
To: Steve Ballmar, CEO Microsoft Corp.
From: Guddi, Marketing Manager
Date: December 8, 2013
Re: Stepping up with Xbox One
“Disappointed” is the one word used to describe the sales of game consoles at GameStop . Though disappointing, Xbox One has won the war at the checkout against Sony’s PlayStation 4 (PS4) (Epstein, 2013). Microsoft’s (MS) smart move to attract the casual gamers lost to the smartphone gaming market by presenting the Xbox One as a super-convenient all in one entertainment system for families edged out Sony’s strategy to cater to hard core gamers and owners of earlier versions of its console. It is too early to confirm if MS’s strategy to pass over the low income gamer market segment to pick up a totally new one will work. The requirements to buy Xbox One and the services it offers is aimed to appeal to the market that has money to spend like the middle class, upper middle class, upper class. With the new interactive TV experience (like the integration of fantasy sports leagues) Xbox One will appeal to sports fans and is all set to dominate the living rooms across U.S. by:
Taking on Apple TV, On Demand and Netflix by offering digital movie rentals, online streaming of videos.
Watch TV, movies, sporting events, political events.
Getting your news, surfing the web, sharing the updates on social media
Running apps and playing “games”
At $499 Xbox One seeks to be more things to more people. Its redesigned controllers improve on ratcheting up the accuracy and comfort and greatly benefits from a better launch lineup of games. The second-generation Kinect delivers a 1-2 punch of motion and voice commands that add a compelling layer of multitasking and interactivity to gaming and our entertainment lives. Add in live TV integration, and it’s clear that the Xbox One is the most versatile new console which is more exciting and an innovative platform for the long haul.
Xbox One does not rule the field; it does have to deal with competitors both traditional and unconventional. Apart from Sony’s PS4, Nintendo Wii is able to keep its market share catering to families with kids under 12 years old. Nintendo Wii is also reasonably priced to attract the audience MS is trying to leave behind. “Gaming is headed towards free.” (Shaughnessy, 2013) Mobile gaming apps is taking