XBox

Slide 1: strategic development presentation microsoft Xbox Phillip T. Lee, Jonathan Nausner 03-dec-2003

Slide 3: THE PRODUCT Introduced in November 2001

Slide 4: The Competition Sony Playstation 2 Nintendo GameCube Introduced October 2000 Introduced November 2001

Slide 5: The product Microsoft XBox Sony Playstation 2 Nintendo GameCube 800 600 400 200 0 CPU Graphics CPU Memory Polygons/sec Memory BW Qualitated Graph – Source: http://www.videogamemovies.net/specs.shtml

Slide 6: The product Microsoft XBox Sony Playstation 2 Nintendo GameCube Hard Drive yes no no Controller 4 2 4 DVD upgradable yes no Broadband enabled upgradable no Networking yes no no Dolby Digital 5.1 yes no no Qualitated Graph – Source: http://www.videogamemovies.net/specs.shtml

Slide 7: The MARKET XBox PS2 GC 20% 21% 59% Source: The Edmonton Journal, May 2003

Slide 8: The MARKET market size 2002: $5.5 billion Video Console Software $4.3 billion Video Console Hardware Since 2000 bigger than U.S. total Box Office Revenues. Expected market growth $49.9 billion in 2001 to $85.7 billion in 2006 (all gaming products) Source: Interactive Digital Software Assoc.-Bear Stearns, Informa Media Group

Slide 9: The MARKET Best product. Equal offer of games. Two years in the market. $ 2+ Billion spent on marketing/advertising. ...and still Nr.2. Source: www.epinions.com

Slide 10: our research • Internet • Special Interest Magazines • One-to-one Interviews • Internet Forums • 2 Focus Groups • Natural Habitat Interviews (LAN-Party)

Slide 11: our research • Internet Forums

Slide 12: our research • LAN-Party

Slide 13: Target audience Demographics: Lifestyle “Play Video Games” Single Males Aged 18-24 Graduated Highschool Some College Source: SRDS Lifestyle Market Analyst 2003

Slide 14: Meet Ben. 22 years old Plays video games but doesn’t really consider A social guy who likes himself a hardcore gamer to hang out with his friends He still likes to play sports Loves music and movies and go out First gaming console was a He isn’t easily impressed Nintendo and if he would buy by commercials trying to all of the gaming consoles but reach his generation, has to settle for just one he knows if the ad is phony (the best one in his opinion)

Slide 15: insight People Play video games for entertainment. Duh.

Slide 16: insight “A good video game is like a good book: You don’t want to turn the machine off until you have reached the last level.” a Good video game lets you immerse yourself in the experience.

Slide 17: http://www.youtube.com/watch?v=6Bqq38WZctA Playstation Ad “Double Life” – TBWA London

Slide 18: Nintendo Brand Ad

Slide 19: Nintendo Software Ad

Slide 20: strategy? Playstation and Nintendo TO CONVINCE people, aged 18-34 TO USE their console system INSTEAD OF not playing games BECAUSE they give you a break from everyday life

Slide 21: http://www.youtube.com/watch?v=mLPj8cgDOVk XBox Ad “Champagne” – Bartle Bogle Hegarty London

Slide 22: strategy? XBox TRIES TO CONVINCE people, aged 18-34 TO USE their console system INSTEAD OF not playing games BECAUSE you should play more to have more fun.

Slide 23: play more? But I already have a Playstation II.

Slide 24: What makes the xbox outstanding?

Slide 25: problems of the xbox • playstation ii was out first. • people do not know what the XBox can do. They know the technical features but not all understand how they improve the gaming experience. • Games XBox did not have enough good games in the first year. SOLVED. • controller The original controller was too big and unergonomic. SOLVED.

Slide 26: strengths of the xbox • Best hardware Potential • Xbox live Best online gaming service available • systemlink XBox is the only system that can be used in a network • games Halo. Producers develop with the XBox in mind.

Slide 27: insight it is not important how good a system is in numbers and specs but what it can do for the game experience.

Slide 28: a new campaign The new campaign – created by brand agency Landor – –  stresses: • Games No brand ads but game ads with a brand messages. • online and network ability New Slogan: IT’S GOOD TO PLAY TOGETHER.

Slide 31: BOOORING.

Slide 32: You just broke Rule Number One of video console advertising: NEVER NEVER NEVER BORE THEM.

Slide 33: and you missed the spot: Why is it good to play together? IT IS MORE FUN!

Slide 34: recommendation

Slide 35: Convince

Slide 36: To buy

Slide 37: instead of

Slide 38: because more potential = more fun

Slide 39: because more players = more fun

Slide 40: Tone Be better than just good. Be Exciting. Be Boastful. Kick some ass. do not worry about the feelings of the other consoles. you are in another league.

Slide 41: Think of: vs.

Slide 42: Think of: vs.

Slide 43: Think of: vs.

Slide 44: Have fun.

Slide 45: promotional idea bundle xbox with free halo and a 2-month-trial of xbox live • Bundle all the strengths of XBox “Halo is an awesome game, but paying $ 300 [for the console and the game] to own only one game is just too much.” • Promote upcoming Halo 2

Slide 46: billboard

Slide 47: Thank you.