Microsoft's Xbox: Taking on Sony Playstation|Business Strategy|Case Study|Case Studies

Microsoft's Xbox: Taking on Sony Playstation

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Case Details:

Case Code : BSTA060
Case Length : 10 Pages
Period : 1972 - 2004
Organization : Microsoft / Sony
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Videogaming

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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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Our goal needs to be to contain Sony.

- Bill Gates1


In late 2003, Bill Gates (Gates), the founder of Microsoft, was introspecting about the prospects of Xbox, its futuristic videogame console. The ambitious product launched in 2000 was receiving a lukewarm response in the market. For every ten PlayStations sold by Sony, Microsoft sold only one X-box. The development costs of the console had exceeded $ 500 million. Xbox was Microsoft's future-generation video game system that delivered powerful gaming experience. Sleek and powerful in its look (See Exhibit I), in a rich shade of black, the Xbox console emblazoned a large "X" and a signature green Xbox "jewel" positioned in its center.

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Microsoft believed that Xbox empowered game artists by giving them the technology to fulfill their creative visions, creating games that blurred the lines between fantasy and reality...

Excerpts >>

1] Dean Takahashi, "Opening The Xbox," p-112.

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