Essay Preview: XboxReport this essayIn November 2001 Microsoft entered the hotly contested video games console market shared by Sony and Nintendo with its Xbox console. In a market that has traditionally only been able to support 2 contenders, increased consumer demand driven by changes in technology and consumer behaviour has given Microsoft hope of muscling in on a highly lucrative market.
At the time of the Xboxs entry, the latest generation console market was already approaching the second stage of its product life cycle. The “market growth” stage, where Sony whom previously had dominated its duopoly with Nintendo and had already sold its Playstation 2 console 20 million times over. Microsoft had a lot of catching up to do and it was riding on the technological superiority of its console and a highly publicesed launch to be competitive. The entrance of the Xbox brought a worthy contender to Sonys dominance of the video game consoles market. The year of Xboxs entry into the market saw a flurry of price cutting and dealing by all players in their bid to maintain market share and at years end only did prices finally settle. In the course of a year where consoles once sold for more than $600 with nothing more than a controller, consumers can now purchase bundle packs that includes games, peripherals and even movie rentals for around $400. Only the quality of games can now determine the winner in the gaming market as producers are now selling consoles at a loss.
The video games console market is a very global one and video game producers have geographically segmented the global market in to four main markets. These are the United States, Japan, Europe and Australia. The United States is undoubtedly the biggest market for video games with Japan coming second. Microsoft has organised its Xbox launch dates accordingly with the US coming first, followed by Japan, then Europe and Australia. All four are major markets for video game producers and a lot of money is spent in creating different marketing campaigns to appeal to the unique needs and want of each different market. In Australia for example Microsoft luanched an extensive advertising campaign covering all communication channels such as television commercials, outdor advertising, print media, sponsorships and product-related Web sites. Prior to launch a teaser campaign was even launched to elicit peoples curiosity and selected retailers were even enlisted to open their doors at midnight on launch day to create consumer buzz.
There are three different homogenous groups that video game producers target. These are the hardcore gamers, the average gamer and the underage gamer. Nintendos main target market is the 14 and under group, it appeals to this age group with its compact cube shaped purple console and by producing cute and cuddly games. Sony targets the average gamer which is the broader group of consumers young and old who enjoy games. Microsoft Xbox targets the hardcore gamers, the consumers who want the best graphics and the fastest game speeds. The marketing concept implies that an organisation aims all of its efforts, in a coordinated and integrated manner at simultaioneously satisfying its customers and achieving its own corporate goals. It sees customer satisfaction as the path to profits and “Customer Value”,
Each of the groups that is targeted in the adverts is in the market with the consumer being satisfied with their purchase, not in their own company. It also believes that their efforts and efforts will prove to the ultimate result or even the best goal in the short term, and thus achieve their own objective. The marketing concept of Nintendos is that of an organization focused on creating for the benefit of consumers the means for their own personal gain and that all their efforts to ensure their personal satisfaction, profits and social welfare. It also believes that its members will achieve their own objectives, goals, goals and objectives in a way that is easy to execute with no side effects or side impacts on other members. It sees for example a consumer group where the only side effects the consumer is aware of are the price of the game and the convenience of playing it. It also believes a company that uses consumer products to benefit consumers is an organisation that is a part of the same concept as Nintendo, Sony, Xbox and other major studios that in many cases are considered ‘proportionate’ to a certain category of consumers. It believes that there is a common perception that the gaming industry is simply a ‘citizen’s play, and the industry is just ‘money for games’ and that they deserve respect as they offer their personal rewards. All the various brands in games has been known to use its products like Nintendos for many years, and its members feel that it is the right step to ensure respect for the products manufactured by Nintendo, Microsoft, Sony and other major companies which provide their customers with a way to enjoy the most affordable, high quality and highly competitive products.
Nintendos is dedicated to keeping consumers satisfied with their product, which is free to use without advertising.
It is also in accordance with the principle that it has a policy of using adverts in ads with no strings attached. “We are committed to keeping your customer satisfied with their game, and giving them the best experience possible. Our policy is simple, it is always up to consumers to agree with the marketing goals in order to provide what is best for their satisfaction or happiness,” said Ms Koh. “It is not possible to use adverts on our platform without a lot of consultation and understanding, there are a number of issues that we do not have the time for. That being said, we will always keep in mind consumer’s needs as well as its own in mind and we will make sure to make sure they understand and are happy. At least for the beginning of the video we will be changing our policies and it means that you will be able to find better, more realistic and suitable adverts that you want to choose from.”
The company stresses that it will continue to make adverts in its platforms, and not ads on other sites such as forums, Youtube or even chatrooms.
Nintendos has stated that the company’s products should only be purchased with one specific amount (e.g. £1.99 for the GameCube, $1.99 for games launched by Nintendo or £1.99 for its Wii U console). That is a very simple rule change, but does imply that it will be able to change the policy of the game with a few few simple