Microsoft X Box One Marketing Problem

987 words | 4 page(s)

X-box one can best be described as a video game console that was designed and marketed by Microsoft Corporation. It was developed to succeed Xbox 360 (Takahashi, 2012). It was the third ever designed gaming console in the Xbox family. The initial release of Xbox one took place in regions of the world such as North America, Australia, and New Zealand. This was late in the year 2013. According to Microsoft Corporation, the Xbox one is simply an ‘all-in-one’ entertainment system. The multiprogramming capabilities of the device makes it a direct competitor of some of similar products such as Apple TV and Google TV platforms. However, in launching Xbox one into the market, Microsoft Corporation has experienced three major challenges with the product and its customers.

Marketing Challenges facing Xbox One
Most of the problems that came with the marketing of Microsoft Xbox one were mainly created by Microsoft Corporation itself. They mostly arose from the design and structure of the Xbox equipment, its requirements and operational techniques. The three major problems that have been put across include:
Restrictions on Connection Intervals. The Microsoft designed the program in such a way that it can only connect once to the internet in 24 hours. This is due to the Digital Rights Management (DRM) which many users of online gaming programs highly despise. In implementing the DRM and regulating the extent to which users can log into the internet in a day, Microsoft tends to centralize its powers on the usage of the Xbox tools. This has highly inconvenienced the customers and limited the levels of acceptance of the Xbox console.
Incorporation of the Kinect Devices. In the current business society, customers are more concerned with issues of their privacy and confidentiality. This has been given more attention owing to the more sophisticated trends that cybercrime has taken. The Kinect device that came with the Xbox one has to be connected for the device to work (Staff, 2013). According to most of the customers, this was not a good idea as it could read some private information about the users and disseminate the same over the internet.
Lending and Renting Stipulations. Under ordinary circumstances, gamers are used to buying and selling used games- that sums it up! However, in the case of the Xbox system, the users have been restricted. One cannot share the game with a friend. This is not unless they have been friends over the Xbox Live network for a period not less than 30 days. It becomes more challenging or nearly impossible to resell the used games. The restrictions that Microsoft placed on these device has irked most of the customers.

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An interaction among the three issues have greatly reduced the extent to which they are sold out to the consumers. Competitors have used this as an advantage to gain a wider market coverage for similar products.

Microsoft’s Marketing Information System (MkIS) Secondary Data
Secondary data entails information acquired previously by other researchers or bodies in an organization or from outside a company (Patzer, 1995). Microsoft’s information system has a wide range of secondary data on its Marketing Information System. Three of these are:

Sales Data. Marketing and Sales department records important information regarding the operation carried out. Sales reports over different financial periods is important for making forecasts. Classification is done in terms of market segmentation, product type and policies used.
Marketing Research Reports. The reports compiled by researchers in the course of their activities are compile and stored in the information system for inferences. The data that is available is necessary for decision-making purposes.
Competitors’ Information. Published information relating to its competitors is also summarized and stored in the Information System. This helps in making decision regarding the policies to use in the course of operation.

Patent Information for Microsoft Corporation
Microsoft Corporation has been associated with many inventions (Hitchcock, 2013). Information regarding these inventions can be made available in the marketing information system. One of the patent information that Microsoft could incorporate into the Information system is the patent exchange program with another company, for example HP or Apple. Invention of the Xbox system and the image that marketing policies adopted by Microsoft have given it would call for patent exchange so as to give it a new image and boost the sales.

In addition, the specifications of the Xbox system and its development criteria can be a useful patent information to incorporate in the Information System. This would assist the marketing professionals to design appropriate marketing strategies for their potential customers.

For the Xbox case in Microsoft, it is appropriate to carry out primary data search in addition to secondary data that may be available on the Information system. Primary data is more appropriate for decision making since they will be able to collect customers’ views through interviews, questionnaires and other data collection technique. First-hand information is more reliable compared to the existing records that are bound to be irrelevant to the current state of events.

The Xbox gaming tool is a unique product designed by Microsoft Corporation. There is need for the Company to solve the challenges that it has faced in the course of marketing the product. In doing this, the decision-making process should rely in both primary and secondary data sources in order to make sound recommendations over the program. Patent information regarding this invention should also be reflected on the Marketing Information System.

  • Hirai, K. (2013). Sony Capitalizes on Microsoft’s Xbox One Marketing Fail. From
  • Hitchcock, D. (2013). Patent searching made easy: How to do patent searches on the internet & in the library.
  • Patzer, G. L. (1995). Using secondary data in marketing research: United States and worldwide. Westport: Quorom Books.
  • Staff, M. F. (2013). Microsoft Still isn’t over its Xbox One Problem. London. News and Markets. From
  • Takahashi, D. (2012). Opening the XBox: Inside Microsoft’s plan to unleash an entertainment revolution. Roseville, Calif: Prima.

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