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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Please note:

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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Background

Founded in 1975 by Paul Allen and Gates, Microsoft was the largest software company in the world. Riding the success of its Windows and Office tools, Microsoft quickly expanded its products and services to compete in a wide range of software products...

Video Gaming Systems

Video games were targeted mostly at children in the age group of 6 to 14. Players controlled the game characters like racing cars or fighting monsters on a TV screen. Usually, a home video game system consisted of three types of components, a gaming console, controllers and cartridges...

Microsoft's Strategy

The annual Game Developers Conference (GDC) at San Jose, California was aimed at developers of video gaming systems. In March 2000, Gates took the stage at GDC to officially reveal Microsoft's Xbox...

The Launch of Xbox

Rumors concerning Microsoft and a console project began surfacing as early as 1999. Though it had been involved in PC gaming for years, Microsoft initially became involved in the console hardware market with an operating system that ran Sega Dreamcast...

Xbox's USP

Even before announcing the Xbox, Microsoft had made extraordinary efforts to bolster relationships with established third party publishers and developers. As a result, names like SEGA, Lucas Arts, Tecmo and Capcom were already describing how their franchises could perform on the Xbox...

Xbox Live

In 2002, Microsoft launched Xbox Live (Live). The company believed that Live was the ultimate gaming arena where one could play Xbox games online over the Internet with a high-speed connection, communicate in real time during games and set up chats with friends...

Xbox Vs PlayStation

Many users felt that the Xbox was just a graphically enhanced PC in a square shaped box. They viewed Xbox as a high-end computer than a true gaming console...

Road Ahead

Microsoft derived some satisfaction from the figures showing a slowdown in sales of the PS-2 by 2003. Shipments of the PlayStation dropped by 42% to 2.65 million units for the April to June period in 2003, compared to the same time in 2002...

Exhibits

Exhibit I: Microsoft’s Xbox
Exhibit II: Microsoft - Key Financials
Exhibit III: Xbox Features
Exhibit IV: Xbox Technical Specifications
Exhibit V: Videogame Console Sales - Till 2003
Exhibit VI: Xbox & Linux
Exhibit VII: Xbox



 

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