SWOT Analysis of XBOX

adam December 3, 2012 Video Games No Comments

Xbox is a pastime video game ease manufactured by the Microsoft Company. On November 15, 2001 it was launched in North America, on 22 February, 2002 in Japan, and on 14 March, 2002 in Australia and Europe. Microsoft attacked on the console market of gaming by introducing Xbox in the market. As being the part of sixth generation gaming Xbox has battled with, Sega’s Dream cast (before Xbox came out for sale it has stopped the American sales), Nintendo’s GameCube and Sony’s Play station 2. The incorporated services of Xbox live service released in November of 2002 and it also allowed the players to play online with the broadband network. It is the only trait that made Xbox successful and admired, that many of the detractors saying that Xbox live have a improved online practice than PlayStation 2’s online service, despite the fact that Xbox needs a payment while PS2’s online service is for free of cost.

Strengths

• Xbox is of very low cost than many other game products. Such as its main similar opponent PS3.

• It is the first online product of its kind.

• On the way to its past compatibility with before Xbox games these are much better and advanced.

• It is a very strong product.

• After its release in the market it gained more popularity and became number one gaming console.

Weaknesses

• It has a straight competition with Nintendo which is of low cost and has a huge buyer’s base, which makes him Xbox main opponent in the market.

• It been seen that Microsoft has started making low priced and despicable Xbox for just video streaming.

• It is making pricey hardware and games.

• After the increase of its products prices its market share is getting low.

Opportunities

• By doing partnership with the Hollywood studios they will gain an everlasting image. As Hollywood will help them grow internationally.

• The diffusion of new markets can also help them promoting their business.

• By joining hands with some well known company they will be known widely and this thing will help them grow their business around the globe.

• Introducing their new offers or services directly to the computers so the clients can make deals just by sitting in their homes. It will also help their business grow.

Threats

• As Microsoft has been making cheap Xbox for video streaming this may affect their image on their customers.

• The main challenger to Xbox is Nintendo which is of low cost and has larger consumer base.

• Antitrust issues are growing day by day in Europe. This may have an effect on their image in the market.

• If Xbox ever drop its real and dependable image in the market than it is going to be really hard for them to have that place again.

• Due to the obstacles in the hardware there production will suffer and due to this they may lose their customers.

References

Xbox, Official Company Webpage, (2012): http://www.xbox.com/en-US/ Retrieved: 25th Nov, 2012

Yahoo finance, Xbox, (2012): http://finance.yahoo.com/news/microsoft-making-cheap-xbox-streaming-173944501.html Retrieved: 25th Nov, 2012

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