Microsoft's Xbox: Taking on Sony Playstation

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:			Price:
Case Code	:	BSTA060	Electronic Format: Rs. 300; Courier (within India): Rs. 300 + Rs. 25 Extra Themes -
Case Length	:	10 Pages
Period	:	1972 - 2004
Organization	:	Microsoft / Sony
Pub Date	:	2004
Teaching Note	:	Not Available
Countries	:	Global
Industry	:	Videogaming

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.