1. What are the key elements of Microsoft's marketing strategy for the Xbox 360?Microsoft introduced the new Xbox 360 using a direct-to-consumer approach, placing it in the sights of its target market 4 days before the launch of its competitors. This direct-to-consumer strategy gave the new Xbox an edge and transformed the gaming industry's marketing and product development practices. The software giant unveiled the Xbox 360 during a pre-recorded MTV broadcast, introducing the Xbox 360 to consumers four days before Sony and Nintendo became the first to reveal details of a new console. Microsoft's "jumping the gun" was a ploy to take advantage of the foothold gaming gained with its first Xbox, launched in 2001, and to get a jump on its competitors. In revealing and promoting its new console through non-traditional means with multiple partners and six months before shipping, Microsoft intended to build goodwill with discerning gaming consumers and beyond. Talking to consumers now and getting the Xbox 360 into stores before the end of 2005, probably well before new devices from Sony or Nintendo, will give Microsoft a big perceived advantage in the market. What are the similarities and differences from previous product launches within Microsoft and from the rest of the industry? The direct-to-consumer strategy was very different from the way Microsoft normally launched new products. Usually a latecomer in gaming technology, this gave Microsoft a perceived advantage over the competition. Microsoft's goal was to decrease sales of both the Xbox1 and Playstation 2, as well as gain an advantage over the upcoming Playstation 3. Microsoft's competitors limit the company in both price and performance. Therefore, Microsoft had to provide a console that offers customers a gaming experience at least as good as the competition, at a price they are willing to pay. Microsoft had to offer an equally interesting platform even if it would have hit the market six months earlier. Microsoft has benefited from the establishment of its competitors in the video game market and the growing acceptance of video games as a leisure activity around the world.3. Could Microsoft be considered one of the best and worst examples of marketing success in America in the 80s and 90s? Discuss. In 1989, Microsoft overtook Lotus to become the world's largest software vendor. At the time, the company boasted the broadest range of software products and applications as well as the highest profit margin in the industry of nearly 25%..
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