Microsoft’s New Gamble
Jennifer Foster and Rodrigo Vaca
Issue date: 11/12/01 Section: News
Microsoft is moving out of the office and into your living room. With the recent launch of its X-Box gaming system, Microsoft has shown an ability to think out of the box for both its development and marketing strategies. From cooperative (even dependent) partnerships with game makers to marketing that actually plays down their brand (no MS X-Box), Microsoft is betting that it can reach new audiences through the game console.
The first contact anyone might have with X-Box is not the hardware per se, but the name. The difference might be subtle, but X-Box (vs. GameCube and PlayStation) is the only console of its kind whose name might as well suit any other non-gaming product, thus creating an enigma surrounding the product.
Less subtle is hardware size. X-Box is so huge it makes one wonder what’s inside--it’s perhaps 2-3 times bigger than GameCube. Of course, this difference is explained in part because X-Box fits a regular CD (and can double as a DVD player), while GameCube uses a smaller version. So what seems a disadvantage at first glance might ultimately compensate for the $100 price difference. After all, neither system is a laptop where small size is a factor.
Microsoft publishes the superior characteristics of the X-Box hardware: micro processing power and storage (a hard drive inside the unit). Although some techies may appreciate that, the main criterion is not the clock speed of the hardware, but the overall performance of the software the user gets. Comparing same game performance among systems may not be very useful because each system targets different markets. A particular game is not equally important for every console.
The most important factor in judging X-Box is the variety and type of games available for each system. GameCube lists 80 different games with some games designed to appeal mostly to kids (i.e. Scooby-Doo, Rugrats). X-Box lists only 45 games. However, its games clearly target an older audience. On the extreme is Sony’s PlayStation2. They feature 141 games…and that’s only the Sports section. They also have 66 games for kids (i.e. Bugs Bunny, Barbie, Elmo). Microsoft’s main competitor will be Sony, not only based on price, but also games offering.
With list prices the same for these two systems (that is, if anyone has the X-Box console in stock to sell), the competition will focus more on the game titles. As with any hardware platform, Microsoft must be able to quickly make new titles available either themselves or through licensing. In particular they will need to create or latch onto a “killer game,” such as Nintendo’s Mario Brothers, to personify their system.
Critics argue that Microsoft is actually taking a defensive position and will have a difficult time wooing customers away from Sony and Nintendo. However, Microsoft came up from behind with Windows, Word, and Internet Explorer, and optimists predict the strategy will work with X-Box. Time will tell but first week sales are promising. Most stores already running out of X-Box stock.
The first contact anyone might have with X-Box is not the hardware per se, but the name. The difference might be subtle, but X-Box (vs. GameCube and PlayStation) is the only console of its kind whose name might as well suit any other non-gaming product, thus creating an enigma surrounding the product.
Less subtle is hardware size. X-Box is so huge it makes one wonder what’s inside--it’s perhaps 2-3 times bigger than GameCube. Of course, this difference is explained in part because X-Box fits a regular CD (and can double as a DVD player), while GameCube uses a smaller version. So what seems a disadvantage at first glance might ultimately compensate for the $100 price difference. After all, neither system is a laptop where small size is a factor.
Microsoft publishes the superior characteristics of the X-Box hardware: micro processing power and storage (a hard drive inside the unit). Although some techies may appreciate that, the main criterion is not the clock speed of the hardware, but the overall performance of the software the user gets. Comparing same game performance among systems may not be very useful because each system targets different markets. A particular game is not equally important for every console.
The most important factor in judging X-Box is the variety and type of games available for each system. GameCube lists 80 different games with some games designed to appeal mostly to kids (i.e. Scooby-Doo, Rugrats). X-Box lists only 45 games. However, its games clearly target an older audience. On the extreme is Sony’s PlayStation2. They feature 141 games…and that’s only the Sports section. They also have 66 games for kids (i.e. Bugs Bunny, Barbie, Elmo). Microsoft’s main competitor will be Sony, not only based on price, but also games offering.
With list prices the same for these two systems (that is, if anyone has the X-Box console in stock to sell), the competition will focus more on the game titles. As with any hardware platform, Microsoft must be able to quickly make new titles available either themselves or through licensing. In particular they will need to create or latch onto a “killer game,” such as Nintendo’s Mario Brothers, to personify their system.
Critics argue that Microsoft is actually taking a defensive position and will have a difficult time wooing customers away from Sony and Nintendo. However, Microsoft came up from behind with Windows, Word, and Internet Explorer, and optimists predict the strategy will work with X-Box. Time will tell but first week sales are promising. Most stores already running out of X-Box stock.