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XBOX
...jump in...
Product Background
•   Original Xbox released 2001 in North America
•   November 2002: Xbox Live launched allowing subscribers to play online
    with others around the world as well as access to downloadable content
•   In 2004 Halo 2 becomes the highest grossing release in entertainment
    history making over $125 million in its first day
• Xbox 360 released on November 22, 2005
• July 2005 Microsoft announces one million Live subscribers
• By July 2007 the membership had
  increased to three million
  making it a very popular
  gaming service
Product Background Cont’d
• In 2008 Xbox experienced biggest year
   – Life to date sales rose to 28 million
   – Lead competitor PS3 by more than 8 million units sold
• New Xbox Experience launches November 2008
      – Makes navigation easier
      – New community system
      – Ability to install games onto the hard drive
-   Netflix feature launches; holding over
    12,000 movies and TV shows
    available to buy or rent
    in DVD/HD quality via download
Video Game Console Market
•   2004-2006: industry increased by 50%
     – Growth attributed to increased hours of gaming
•   Main competition: PS3 and Wii
•   Experienced decline following the release of Nintendo Wii in 2007.
     –   Outsold every month
     –   Sales decreased by 33.6% in 2007
VG Console Market Cont’d
•   2008
     – Market dominated by Wii
     – Top 3 Consoles; Xbox ranks 2nd in total console sales to date, starting in
       January 2008 (North America)
XBOX Live Demographics
- Gender             - Income
   - 69% Male           - 48% have household
                          income > $30,000
   - 31% Female
                        - 26% have household
- Age
                          income > $50,000
   - 55% age 18-34
   - 31% age 35-44
XBOX Advertising Promotion
“Jump in” Ad
McClelland’s Trio of Needs
                                                – Strong need for achievement:
                                                  regard
•   Power
                                                 personal accomplishment as an end
     – Fulfills desire to control environment
                                                  in itself
     – Controls others and various objects
                                                – Egotistic need
     – Relates to ego; self esteem
                                                – Self actualization need


•   Affiliation
     – Affected by friendship, acceptance
          and belonging




•   Achievement
Consumer Information Processing
              • Ad uses a peripheral route to
              persuasion
                  •Peripheral cues are used
                  •Leads to learning and discovery
                  •Viewer’s focus on elements given
                  •Attitudes or product choices are
                  quickly formed
Uncovering Consumer Needs
     Using Laddering
                                       Functional            Psychological           Underlying
  Product       Attribute
                                     Consequences            Consequences              Needs




                                                                  Feeling of
                                     Available Competition
                                                               accomplishment

               Online Capability

                                                             Interact with people
                                      Social Networking                             Need for affiliation
                                                               over the internet



             Functional, Appealing   ease and comfort of     user is more capable
             and Ergonomic Design            use               enjoyable to use


  Xbox 360
                                                                  Feeling of
              Achievment System      Aquiring Achievments                           Need for achievment
                                                               accomplishment



                                                                                    Need for power and
                                                                                    need
             Downloadable Media                               More appealing to
                                     access to HD content                                Ego needs
                                                                                         prestige
                  (Netflix)                                        watch



                                      more features, and
               Next Gen Console                              user is more capable
                                          controls
Questions?

 Thank you!
Sources
• http://www.researchandmarkets.com/reportinfo.asp?cat_id=0&report
  _id=544281&q=Video%20Game%20Market&p=1
• http://www.roughlydrafted.com/2008/01/31/video-game-consoles-
  2007-wii-ps3-and-the-death-of-microsofts-xbox-360/
• http://advertising.microsoft.com/gaming/xboxcom-
  advertising?tab=overview
• Schiffman, L.G., Kanuk, L.L., & Das, M. (2006). Consumer
  Behaviour. Toronto: Pearson Prentice Hall.
• http://videoonlinegames.suite101.com/article.cfm/xbox_360_options
  _on_the_market
•

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Xbox Slideshow

  • 2. Product Background • Original Xbox released 2001 in North America • November 2002: Xbox Live launched allowing subscribers to play online with others around the world as well as access to downloadable content • In 2004 Halo 2 becomes the highest grossing release in entertainment history making over $125 million in its first day • Xbox 360 released on November 22, 2005 • July 2005 Microsoft announces one million Live subscribers • By July 2007 the membership had increased to three million making it a very popular gaming service
  • 3. Product Background Cont’d • In 2008 Xbox experienced biggest year – Life to date sales rose to 28 million – Lead competitor PS3 by more than 8 million units sold • New Xbox Experience launches November 2008 – Makes navigation easier – New community system – Ability to install games onto the hard drive - Netflix feature launches; holding over 12,000 movies and TV shows available to buy or rent in DVD/HD quality via download
  • 4. Video Game Console Market • 2004-2006: industry increased by 50% – Growth attributed to increased hours of gaming • Main competition: PS3 and Wii • Experienced decline following the release of Nintendo Wii in 2007. – Outsold every month – Sales decreased by 33.6% in 2007
  • 5. VG Console Market Cont’d • 2008 – Market dominated by Wii – Top 3 Consoles; Xbox ranks 2nd in total console sales to date, starting in January 2008 (North America)
  • 6. XBOX Live Demographics - Gender - Income - 69% Male - 48% have household income > $30,000 - 31% Female - 26% have household - Age income > $50,000 - 55% age 18-34 - 31% age 35-44
  • 9. McClelland’s Trio of Needs – Strong need for achievement: regard • Power personal accomplishment as an end – Fulfills desire to control environment in itself – Controls others and various objects – Egotistic need – Relates to ego; self esteem – Self actualization need • Affiliation – Affected by friendship, acceptance and belonging • Achievement
  • 10. Consumer Information Processing • Ad uses a peripheral route to persuasion •Peripheral cues are used •Leads to learning and discovery •Viewer’s focus on elements given •Attitudes or product choices are quickly formed
  • 11. Uncovering Consumer Needs Using Laddering Functional Psychological Underlying Product Attribute Consequences Consequences Needs Feeling of Available Competition accomplishment Online Capability Interact with people Social Networking Need for affiliation over the internet Functional, Appealing ease and comfort of user is more capable and Ergonomic Design use enjoyable to use Xbox 360 Feeling of Achievment System Aquiring Achievments Need for achievment accomplishment Need for power and need Downloadable Media More appealing to access to HD content Ego needs prestige (Netflix) watch more features, and Next Gen Console user is more capable controls
  • 13. Sources • http://www.researchandmarkets.com/reportinfo.asp?cat_id=0&report _id=544281&q=Video%20Game%20Market&p=1 • http://www.roughlydrafted.com/2008/01/31/video-game-consoles- 2007-wii-ps3-and-the-death-of-microsofts-xbox-360/ • http://advertising.microsoft.com/gaming/xboxcom- advertising?tab=overview • Schiffman, L.G., Kanuk, L.L., & Das, M. (2006). Consumer Behaviour. Toronto: Pearson Prentice Hall. • http://videoonlinegames.suite101.com/article.cfm/xbox_360_options _on_the_market •