Abstract

This case is about Xbox, Microsoft's future generation video game system that has been designed to deliver a powerful gaming experience. Microsoft believes that Xbox empowers game artists by giving them the technology to fulfil their creative instincts. But this ambitious product, launched in 2000 has so far received only a lukewarm response in the market. For every ten PlayStations Sony sells, Microsoft is selling only one Xbox. The development costs of the console have exceeded US$500 million. Microsoft has also spent a lot of money marketing the product. The case discusses Microsoft's strategies in launching and marketing Xbox and the intense competition it faces from Sony's PlayStation.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

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Keywords

Xbox, Microsoft, Game Cube, Video games, PlayStations, Sega, Competitive strategy, Sony, Nintendo, Xbox live, Nokia, Atari, Bill Gates, Linux, DVD