New Xbox 360 sales tactics?
In a statement that surprised both gamers and non-gamers, Peter Moore of Microsoft Xbox, Nintendo’s new Wii console, endorsed. Speculation has circulated whether this statement from Moore was a sincere praise or calculated step designed to offset the launch of Sony PlayStation 3. Moore even referred to himself as a big fan of the Nintendo console. He suggested that for the price of a PS3, players could get a new Xbox 360 plus a Nintendo Wii, with a little surplus for a few games. It may be recalled that Sony fixed the price of their new PlayStation at $ 499- $ 599, a price the company claims is suitable for a Blu-ray console.
This move by Microsoft was another tactic to boost Xbox 360 sales with the impending release of the PS3 on its heels. Peter Moore has delayed the viability of the PS3 by showing the only downside to the new Sony console: its price. But Moore’s reason wasn’t just about consumer concerns. Moore’s statement also implies that Microsoft does not view Nintendo as a direct threat and competitor. Maybe he thought Nintendo support would clearly drive Microsoft sales. Moore did it right in this case, as ugly numbers come up in sales reviews of the Microsoft consoles.
The marketing and research firm, NPD Group, provided numbers and reports indicating that the esteemed Microsoft console was behind the PS2 in terms of hardware sales. Launched half a decade ago, Sony’s PlayStation 2 still allows it to be found in the game console market. The five-year-old Sony console even surpassed sales of the then brand new Xbox 360 especially in May. The next-gen console sold only 221,000 units; 11,000 units less than PS2 sales. Although Microsoft quickly retaliated by revamping the shipping processes and adding a third manufacturer for its console, it wasn’t enough to draw a significant margin between their sales and PS2’s.
But even if the move is not enough, it has somewhat improved the sales of the Xbox 360 console. Subsequent sales reviews showed that console sales picked up; the influx of consoles that ensure adequate supply and fast sales. But the PS3 has been touted as a bigger threat. It also didn’t help that Sony’s processing systems have improved since the release of the PS2. Clearly, Microsoft has become essential in promoting its marketing operations to secure their top position within the next generation hierarchy.
Finally, Microsoft’s marketing plan includes Peter Moore on Sony’s excessively inflated ego that expects game fans to shell out big bucks for the PS3. Moore targeted the price of the competitive console when he made that statement about Xbox 360 and the Wii console. He also hoped to draw Nintendo fans to the Microsoft side by actively endorsing the Wii. If Nintendo approves Moore’s tactics, the next general console battle will be a two versus one battle. A further sign of Microsoft and Moore’s price attack on Sony’s new console was the news spread for Xbox 360 consoles during the holidays. The price drop was clearly planned to coincide with Sony’s PS3 launch. However, confirmation of Peter Moore’s tactics still rests on the shoulders of the players.