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XBOX ONE

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by

Austin Ryback

on 20 November 2013

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Transcript of XBOX ONE

XBOX ONE
FONTS
Product
The XBOX One offers a completely new and slick design, with features that have never been present in video games in the past. However, some of these features have resulted in analysts stating that the quality is actually poor.

Some features include:
- Enhanced XBOX Live and Kinect
- The NFL on XBOX One
- Skype
- User recognition and tracking
- Ability to use voice commands and gestures to navigate the console

The initial packaging of the XBOX will be obviously in a box, but featured on the box will be a game, and a popular one at that. The game most likely on the package will be Forza Motorsport 5: a new game that is expected to be at high demand.

Price
The XBOX One will initially be released on November 22, 2013 in the United States at a price of $499 US Dollars.
Microsoft is being cheap and are trying to maxamize their proft. They currently do not have any discounts available. However, if you purchase the XBOX One on day one of its release, your console with have the words "Day One" inscribed in it. Nothing really special.
For the new XBOX, you have to pay in full. It is not like a car where you pay a certain amount at a time. However, they still have the XBOX Live plans where one can either buy the Gold version or the generic version. The only special feature the Gold really has though is the new in-game DVR, where you can record your gameplay.
Promotion
"An invitation to a new generation" seems to be a common phrase that the company is using to promote the product. They are doing this with a goal in mind to persue others that this will be one of the most advanced systems in all of video gaming.
"Games with Gold" Promotion: Microsoft will be giving users two free games a month if they had an Xbox LIVE Gold account and an Xbox 360.
Microsoft has partnered with Doritos and Mountain Dew brands to give away thousands of XBOX Ones in exchange for the longevity of your health.

General Introduction
XBOX One Mission Statement (Microsoft): To enable people and businesses throughout the world to realize their full potential.

I chose to do this project on the XBOX One because I am a huge fan of video games. I am also interested to learn more about the background of the new system and based on what I can find, if or if not I would want to purchase this product.

Microsoft's Existing Strategy for the XBOX ONE
Market Segmentation
Market Segmentation: Usually the video game industry as a whole focuses on males, and usually those within the age of 10-21, and in many cases men over 30.
Market Targeting
Market Targeting: The XBOX One will be no different than the rest of the industry in who they target. They will still focus on boys and men of the ages listed in the segmentation section. However, the product will be focusing more specifically on consumers with means. The original price of the system will be a cool $499 when it releases on November 22nd.
Market Differentiation
Market Differentiation and Positioning: Microsoft has taken a new approach with the XBOX One. Its "All in One" concept is the primary focus of their marketing, specifically against Sony and their new PS4, in an attempt to show the XBOX One will be the most innovative video game console to date. They also want their customers to feel that they are "openly invited" to take part in the new system. Finally Microsoft is taking a more worldwide approach with this new XBOX. The system was extremely popular in the US, but they want it to be successful in other areas, specifically in Europe. In the early advertisements for the game, the commercials feature games tailored toward those in Europe, rather than consumers in the US.
Place
Microsoft with the XBOX One will partner with retailers to help sell the product to 36 countries in 13 different markets. Still, it will defintely be sold in the Microsoft Store itself as a "home base".
Other retailers include GameStop, Wal-Mart, Target and Best Buy. All of these stores have sections for electronics, and have sold XBOX 360's in the past.
Consumers can purchase the XBOX One online, like on Amazon. However the demand for the product once it is released on November 22nd will be extremely high, and it might take weeks to ship.
Recommendations
Product
Microsoft should focus on enhancing a portion of the XBOX that they know could be successful. As shown, Microsoft is trying to make the product as technologially advanced as possible with aspects such as user recognition and the ability to recognize voice commands. They are hurting the product by trying to make it better than the PlayStation 4.
The XBOX One currently requires games sold directly for the console, and therefore all old XBOX 360 games can no longer be useful. In order to satisfy customers, specifically myself, the company should develop a way where the new system can be used to play the old games. It is not even like Microsoft produces the majority of the games anyway, so its not like they are losing much money on it.
Price
Microsoft needs to strongly consider lowering the price of the console by at least $50. The all-new PS4, which is expected to be the XBOX One's main competition, is being sold for $399. Some also view the product as having a higher quality. If Microsoft wants this product to be successful, the will need to drop the price.
If Microsoft decides to keep the price the same, they need to provide some sort of discount. Maybe even give an opportunity where the consumer could trade in their old XBOX 360 with 2 games and get $75 off a new XBOX One.
Promotion
Sure I have seen some commercials and advertisements, but Microsoft needs to take bigger steps if they want consumers to know about the product. I recommend that Microsoft takes out ads on billboards in the four major cities in the United States, London and China. The amount of people that would pass by and see the billboard would be astonishing, and therefore it would be successful. With DVR, not everyone even watches commercials anymore.
Aside from giving consumers who purchase the XBOX One on the first day a special system that says "Day One" on it, Microsoft should give them a 50% off coupon for a game of their choice. The games a very expensive and by doing this it shows consumers that Microsoft is appreciative to those who are dedicated to purchasing the XBOX One.
Place
In GameStop and the Microsoft Store's, there is a specific area dedicated to the XBOX. The company should ensure that this becomes the pattern in all stores where to product is sold. By placing the product in an area solely dedicated to itself, it could attract more consumer attention.
Microsoft should ensure that wherever the XBOX One is sold, it can be serviced and looked at if there is an issue after the product is sold. Customer satisfaction will be higher if they know that there is help for them if something goes wrong.
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