MBA (Evening) Program

Department of Marketing
University of Dhaka
Course MKT-526: Global Marketing

CASE STUDY: 4.1 Microsoft Xbox

Submitted To:
Afreen Choudhury
Assistant Professor
Department of Marketing
Faculty of Business Studies
University of Dhaka
Submitted By:
Suhel Md. Reza
ID: 415 290 58
Batch: 29th

1. What were Microsofts motives in entering the games console market?

Microsofts motives in entering the games console market was to lead the gaming industry which
is worth $10 billion worldwide. Although gaming is a rapidly growing market, Microsoft's
ultimate goal is to provide the hardware and software "brains" for delivery of all types of
entertainment through consumer electronics. Also Microsoft is aiming older generation ages
from 16-35. Their motive is to become the worlds largest online gaming community powered by
Xbox console.

2. What are the competitive advantages in the business model of the Xbox 360?
Bringing the Xbox 360 to stores before the end of 2005,
probably long before Sony or Nintendo's new devices, will give
Microsoft a big perceived lead in the market and they got a
head start in new generation of game consoles. The Xbox 360
developed in co-operation with IBM, ATI, Samsung and SiS,
which give them all the technical & organizational supports.

3.

What are the chances that Microsoft will beat the

other games console suppliers, Nintendo and Sony?

Microsoft has an early movers opportunity and it is aiming in

online gaming which is the future. Also Microsoft owns the
intellectual property rights to the hardware used in the Xbox
360, it can easily switch to new fabrication processes or change suppliers in the future in order to
reduce manufacturing costs. By using this flexibility Microsoft can easily beat the other games
console suppliers, Nintendo and Sony as they dont have this options.

4. What are the early mover advantages for Microsoft compared to Nintendo in the
Indian market?

As an early mover Microsoft had always an advantage of grabbing the new market of India
which has not been served yet. Indian gaming market is gradually increasing and in near future it
will boom. So unlike Nintendo Microsoft has its own distribution channel in India and also
Nintendo Wii is not officially available in India, so Microsoft is far ahead of Nintendo if its try to
enter Indian market now with a difficult entry barrier.

5. What will the competitive scenario be like between Microsoft Xbox 360 and
Nintendo Wii in India?
In India Microsoft has a first entrant opportunity over other game console companies. In terms of
Nintendo and Microsoft its still not entered to India yet. Also it is considering HCL to make
their platform but which is already partnering Microsoft. Microsoft has already launces their
product Xbox 360 across 7 cities in India and its capturing the huge market of India.