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XBox Kinect Product Introduction

An examination of the Kinect new product launch

Jason Evans

on 1 April 2011

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Transcript of XBox Kinect Product Introduction

Kinect for XBox 360 UBC Sauder School of Business
BAMA 506 - Consumer Behaviour Jason Evans
Laura Smith
Mahesh Date A controller free interface for use with Microsoft’s Xbox gaming system Can control games through gestures and verbal commands Uses a camera, depth sensor, and microphone Provides 3D motion capture, facial recognition, and voice recognition Can be used with existing Xbox consoles, don’t need to buy an new console Requires large space requirements: 6ft of space between you and Kinect box Can simultaneously track up to 6 people Limited game options Cowen & Co. Combined console sales of Wii, Xbox, PS3 have remained stable over last 3 years at around 17 – 19.4 million per year Intro Campaign Advertising budget of $500million Intro: June, 2010
E3 2010
Featuring Cirque Du Soleil Launch: Nov, 2010
Times Square Any Questions? Holds Guinness World Record:
“fastest selling consumer device”
8 million units in its first 60 days 7,000 retailers will get paid to stay open past midnight 400 million cans of Pepsi, 60 million Kellogg’s cereal boxes will plug Kinect Partnership with Burger King YouTube front page takeover Time Magazine adverts Billboards
Marketing push by Steven Speilberg Plugs:
Dancing with the Stars Free giveaways on Oprah and the Jimmy Fallon Show Forces, Barriers, and Channel Factors Success? The Product Forces for Change/Action: Need recognition and values
Consumer perspective
Competitive drivers for change You are the controller
Good for you
Keeps you moving Value Proposition Barriers to Action: What could block Kinect from moving past the “Chasm” between needs of early adopters and early majority What is stopping the consumer? And... Can Xbox move from kid’s bedrooms to the living room? Space requirements High price tag Switching Costs Fear of Complexity System Compatibility Overcoming Barriers Bundling Back Compatibility Launch Parties Product Givaways Product Trials Simplicity - You Are the Controller
Potential detractor from user experience in some ways (ie specialized controllers) Now surpassed 10million units in about 5 months How is it going for XBox? Expanding Kinect's Horizons:
Opening up platform to encourage developers Some Points: Existing base and backwards compatibility Potential shift in consumer demographics Wii took 2 years to sell 10million units 2 Sided Market:
Increased software supporting Kinect The Console Market 3 major players
Wii Competition:
PS3 Move, Eye
Wii remote plus Neilson: Wii most likely to be found in living room, Xbox leading in Kid’s bedrooms Causes of New Product Success and Failure Relative Advantage Compatibility
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