FINANCIAL PERFORMANCE

OF MICROSOFT

2014 2013 2012

commerci

al

licencing

48%

Device &

Consumer

licensing

22%

Computing

& Gaming

Hardware

11%

Phone

Hardware

2%

Others

17%

REVENUE -GENERATION

Toys and Games

US$152.8 billion

Traditional Toys and Games

US$84.5 billion

Video Games

US$68.3 billion

Video Games Hardware

US$23.0 billion

Video Games Software

US$26.5 billion

Digital Gaming

US$18.8 billion

-0.3 -0.7 -0.1 -1.2

4.43.7

21.8

6.5

-8

3.5

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

% y

-o

-y

va

lu

e

gr

ow

th

(f

ix

ed

ex

ch

an

ge

ra

te

s)

Video Games: Microsoft Corp vs Global Market

2009-2013 Global Market

Value Growth

Microsoft Corp

Value Growth

A B

C

A:

The release of Kinect helps Microsoft to register growth in a contracting market.

C:

Positive growth, with sales boosted by the launch of its new generation console, Xbox one. However, Microsoft remains slightly behind global market growth with the expansion of digital gaming.

B:

• Wait for the release of the next generation of consoles

• Competition from the free-to-play market

• Weakness in Asia pacific, which grows strongly during the year.

November 2001

Original XBOX

console

SALES 24 million

November 2002

XBOX Live

April 2005

XBOX 360

SALES 77.2 million

May, 2013

XBOX One

Sensor webcam

Voice recognition microphone

Full T.V. compatibility

Streaming entertainment services

Unified interface for spoken commands & gestures

input from smartphones and tablets.

Supermarkets Exclusive stores Online

Exclusive bundles(free games included)

Big revealing show on MTV

Sophisticated packagingSponsored game

conventions

The Play Station 4 console outsold the Xbox One 2 to 1.

Xbox Gamers were outraged with the price and many switched to Play Station 4.

Price skimming strategy

$399 $499

Behavioral

Demographic

Psychographic

• 16-30 age group• millennial generation• leaders of the digital revolution• Instant gratification, short attention

spans, and expert multi-taskers

46% 54%

• High usage rate • Social networking• High customer loyalty • They have a significant amount of influence

on rookie or recreational gamers.

• Social class and lifestyle.

• The middle and upper social class customers having disposable income available and use it for video games

• Tend to interact with other gamers virtually major league gaming (MLG) competitions.

• 9 million registered users worldwide.

CRITERIA PS4 WII XBOX

Backwards compatibility

Longevity

Games catalogue

Price & fees

Video capabilities

DVD & Blu-Ray support

Bundling

Complement of PC gaming

Target demographic

• Integration with Windows PC & Tablet

• Complete living room entertainment

• web-connected device that will connect to and record live TV, play films and TV shows, play Blu-ray HD discs and even allow Skype calls.

• Strategic brand management by Keller• Buddingmarkets.com• https://www.microsoft.com/investor/reports/ar14/index.html• http://www.xbox.com/en-IN/• http://assignm5.blogspot.in/• https://crdurancsumb.wordpress.com/2014/05/15/marketing-plan-xbox-

one/• Wordpress.com• http://www.ign.com/wikis/xbox-one/• http://www.theguardian.com/technology/