Marketing The Xbox
07.15.04
Videogames are part of today's culture now so more than ever, and it doesn't appear to be slowing down any time soon. Those that grew up with Atari and Nintendo are now the mamas and papas of the world, and their children are gamers as well.
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-written by 007
Videogames are part of today's culture now so more than ever, and it doesn't appear to be slowing down any time soon. Those that grew up with Atari and Nintendo are now the mamas and papas of the world, and their children are gamers as well. The industry that was once looked at as a niche market has now reached the levels of being mainstream; and that means BIG business. You can't turn on a TV or read a magazine without seeing the latest Sony, Microsoft or Nintendo ad, but how much impact does that have on your purchasing decisions? While it is true that these mass media forms of marketing do play a big role in the success of the products, I believe that there is one area that is highly overlooked when outlining the success of the Xbox-word of mouth.
Regardless if you own an Xbox or choose to despise Microsoft's business ventures, all gamers realize the power of the Xbox and the influence it has had in many areas of the industry. Come this November the console will have been around for two years, and there is plenty of room for improvement. We've seen Microsoft flash out their checkbook to acquire heralded developer Rare, buy up a few franchises like High Heat Baseball, and rumors abound regarding future acquisitions. We have also experienced the powerful online service, Xbox Live, and the new advancements for Live gaming are certainly interesting. Whether you love 'em or hate 'em, Microsoft is here to stay in the videogame market.
Now let me ask you this; have you recently "marketed the Xbox?" Now most of you are probably asking, "What am I talking about?" While it is true that Microsoft and its partners are primarily responsible for how the Xbox is marketed to the consumer market, there is still a little homegrown marketing technique that sometimes makes more of an impact than any television ad. First off, let's take a look at a couple definitions of marketing:
"The act or process of buying and selling in a market."
Here's a more complex definition:
"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives." - American Marketing Association
So what exactly does "marketing the Xbox" have in store for you? It's basically the other side of the Xbox...the side that many gamers don't know, realize, care, or understand about. I'm going to discuss how exactly the Xbox has been progressing in financial and promotional terms. If you've been interested in where exactly Microsoft's time and money has been going into the Xbox, then I suggest you continue on reading.
A few years back when the news of Microsoft expanding into the console industry came out, I was more skeptical than interested. If you focus yourself back to when you first heard of Microsoft developing a console system, you cannot say that in some way you were questioning this move. It took time to finally settle down and realize that Microsoft just might have something going on, but that didn't keep me from thinking how Sony and Nintendo would react. Today, I'm still wondering how Microsoft conceived this powerful console to become an enticing threat in the videogame market. For Microsoft, the Xbox could just be a precursor of how advanced console systems are going to become. Don't expect Microsoft to slow down anytime soon, because in due time consoles are going to do a lot more then they are today.
It's been stated multiple times that the Xbox is not targeted at kids to teenagers. The level of entertainment has been pushed up to adults and is more so concentrated on young adults. You could almost say that Microsoft's goal for the Xbox is to make it a part of our everyday lives, just like the computer has become. What immediately makes the Xbox enticing to parents is the parental control system the Xbox beholds. What wouldn't make a cautious parent happier then to set the rating on games and movies their children play? Aside from that, Microsoft's game lineup doesn't exactly focus on "Early Childhood" gamers, it's more set on teens to adults.
Today, mostly every teenager to adult has by now seen or heard of a CD player, DVD player, or a videogame system. It's not like this is some brand new technology being released on the market, this is previously before seen technology brought together into a console. Microsoft is targeting this age bracket because this is simply people are interested in when it comes down to entertainment. The Xbox isn't attractive because of its big and bulky look, it's the simple but effective features that are catching the eyes of consumers. With the world in its current state of being, it's hard to believe that videogames are still producing positive numbers. The Xbox isn't something we depend upon. I mean, it can't cook us breakfast or sew us clothes. What it does do for people is provide the pleasure of entertainment.
To put this in more understandable words, on Abraham Maslow's pyramid of needs, the Xbox falls in the esteem and self-fulfillment needs. The Xbox is nothing but a luxury item in terms of the pyramid. Along with Maslow's hierarchy of needs, the buyer's income needs to come in tact. You're going to need a roof over your head, clothes on your back, and food on your table. The average workers salary today consumes just about 50% alone. There's very little left to spend once you add transportation, healthcare, and other costs into the picture. While Microsoft is well aware this, they aren't stressing that the Xbox is essential to our daily life, but many consumers feel that entertainment is an important aspect of their lives.
Check back in later for the end of the editorial.
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