New Xbox 360 Sales Tactic
Below is a MRR and PLR article in category Business -> subcategory Sales.
New Xbox 360 Sales Strategy
Overview
In an unexpected move, Peter Moore of Microsoft Xbox expressed support for Nintendo's new Wii console, sparking discussions on whether his comments were genuine or strategically aimed at challenging the launch of Sony's PlayStation 3. Moore, a self-proclaimed Nintendo fan, mentioned that for the cost of a PS3, gamers could purchase both an Xbox 360 and a Nintendo Wii, with some money left over for games. This price comparison raised eyebrows, as Sony priced their PlayStation 3 between $499-$599, highlighting it as a Blu-ray console.
Strategic Intent
Microsoft's approach appeared as a tactic to boost Xbox 360 sales in the face of the upcoming PS3 release. Moore highlighted PS3's high price as a drawback, not only to benefit consumers but also indicating that Microsoft did not view Nintendo as a direct competitor. By aligning with Nintendo, Microsoft aimed to enhance its own sales, amidst disappointing figures showing the Xbox 360 lagging behind Sony’s five-year-old PlayStation 2.
Market Context
Reports from the marketing and research firm NPD Group revealed that Microsoft's Xbox 360 was trailing behind in hardware sales compared to the PS2. Despite the Xbox 360 being new, it sold 221,000 units in one month, which was 11,000 fewer than PS2. Microsoft responded by improving shipment processes and adding a third manufacturer, but the gap in sales persisted.
Results and Challenges
Although these efforts initially didn't make a significant impact, Xbox 360 sales began to improve. However, the imminent threat of the PS3, combined with Sony's refined processing systems, pressured Microsoft to enhance its marketing strategies. Moore's focus on the PS3's price aimed to sway gamers towards the value proposition of purchasing both an Xbox 360 and a Wii.
Conclusion
Microsoft's marketing ploy, spearheaded by Moore, banked on Sony's high price expectation for the PS3. By endorsing the Wii and suggesting a Nintendo-Microsoft alliance, Moore hoped to attract Nintendo fans to Microsoft's side. The strategy also included a reported holiday pricing reduction for the Xbox 360 to coincide with the PS3 launch. Whether this maneuver successfully captured gamers' attention remains to be seen.
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