http://www.next-gen.biz/index.php?option=com_content&task=view&id=5912&Itemid=2
Peter Moore has been speaking of Microsoft's need to revamp its marketing strategies in a bid to widen the Xbox 360's target demographic. Leading analyst expects a price drop before Christmas.
Microsoft has made clear its intentions to widen its line-up of family friendly titles and redesign retail displays as a means of appealing to an audience not traditionally associated with Xbox.
In a move that has strong echoes of Nintendo's marketing strategies, Microsoft hopes to extend the reach of the Xbox 360 far beyond the 20 year old FPS fans that have propped up its games division since the release of the original Xbox and Halo 2. A price cut may also be in the works according to UBS AG analyst Heather Bellini, reports Bloomberg.
``If we don't make that move, make it early and expand our demographic, we will wind up in the same place as with Xbox 1, a solid business with 25 million people. What I need is a solid business with 90 million people,'' said Moore, corporate VP of Microsoft's entertainment and devices division.
Last month Moore talked up the value of Microsoft owned Rare, developer of Viva Pinata (pictured), in helping the company to appeal to a wider audience. Albert Penello, director of Xbox global platform marketing, also feels that Xbox needs to move away from its roots as a haven for hardcore gamers by offering more family friendly content. ``If you don't start building that content and reputation it never comes,'' he said. ``I don't want to be pigeonholed as a hard-core machine.''
Software analyst Bellini believes that if Microsoft's gaming division is to begin to turn a profit and emulate the success of Nintendo's Wii, the company will need to cut the price of the Xbox 360 in order to boost game sales. She says this could happen as early as September.
``If they really are going to have a good Christmas games lineup, then they just have to have the largest number of boxes out there so that they sell the largest number of games,'' said Bellini.
Although he declined to comment on the possibility of an Xbox 360 price cut, David Hufford, a director of Xbox product management, acknowledged that the console's price point, with the core 360 retailing for $300, could be more attractive.
``We are well aware that the sweet spot of the market is really 199 bucks,'' said Hufford. At $250 he labeled the Wii a ``strong value proposition, adding, "When mom walks into the store and sees she can get a console with a game for $250, she sees it as a $300 value. They've done a good job.''
Will we see a $199 360?
Log in to comment