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PRESENTEDTO: PROF N. SAMBANDAM

Group Members:

Siddharth Gupta Gosspy Thakur

Utkarsh Gupta Kanchan Gupta

Yash Gupta Shubhlaxmi Singhal

Sipak K Mohanta Anubha Gupta

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CONTENT:

Introduction

Background Note

The Xbox

The New Xbox

The Design & Features

The Launch of Xbox 360

The Road Ahead

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ISSUES COVERED

Examine the reasons for the unsuccessful launchof Xbox

Understand the importance of product

development strategies in the successful launch ofa product

Critically evaluate the features of Xbox 360

Study Xbox 360's convergence features.

Analyze the status and future prospects of theglobal gaming console industry

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ABOUTMICROSOFT

Microsoft was founded in April 1975 as a partnership concern byWilliam H Gates (William Henry "Bill" Gates III) and Paul Allen.

At this time, the duo had developed an improved version ofBASIC16, which was distributed by Micro Instrumentation and

Telemetry Systems.

In 1977, Microsoft introduced FORTRAN 17 and COBOL 18languages for PCs.

By the end of 1977, Microsoft had emerged as the market leaderin microcomputer languages, with sales exceeding $1,000,000

In 1980, Microsoft bought an operating system called Q-DOS froma Seattle-based programmer for $50,000 and renamed it MS-DOS(Microsoft Disk Operating System).

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CONT.

Soon, MS-DOS became the accepted standard for PCs. By1983, 99% of the PC makers were using MS-DOS.

In 1983,Microsoft introduced a word processing system calledWord 1.0. In 1984, Microsoft introduced

Multiplan, BASIC and Word 1.0 forApples Macintosh computer.

It also upgraded MS-DOS for IBM.

In 1985, it introduced Windows 1.03, and the Excel spreadsheetfor Macintosh.

In 1986,Microsoft launched an initial public offering (IPO) andraised $61 million.

In 1989, Microsoft introduced Microsoft Office.

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MICROSOFTWITHGAMING ZONE

Microsofts interest in gaming dates back to 1983,when the company sold the game Microsoft FlightSimulator.

In 1995,Windows 95 operating system waslaunched. This was followed by web browser andInternet explorer, MSN online service.

In 1997, Internet Explorer 4.0 was released. In1998, Windows 98operating system was releasedand Steve Ballmer (Ballmer) was appointed the

President of Microsoft, while Gates remained itsCEO and Chairman.

Subsequent launches included Windows XP in2001.

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CONT

By 2000, Microsoft emerged as one of the top PC

game marketing companies , with four titles in thetop ten games, in PC gaming business valued atUS$ 1.4 billion.

Its gaming site www.zone.com had 12 million

registered users at that time. Microsoft alsoacquired some game companies like FASAInteractive, Access Software, and entered intoagreements with other companies to develop

games. Some of the popular games from Microsoft were

Age of Empires , Close Combat, Pandoras Box,Microsoft Golf, and Midtown Madness, amongothers.

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CONT

Several popular gaming console manufacturers likeNintendo and Sony were looking at upgrading theirconsoles by making them Internet compatible.

Though it was widely believed that Microsoft was keenon coming up with its own gaming console from 1999, it

was only in March 2000 that Microsoft confirmed itsentry into gaming.

Microsoft announced that its gaming console wouldhave Internet access, would allow multiplayer gaming

and have movie quality graphics. Microsoft alsoannounced that the console would be called Xbox.

Microsoft estimated that its gaming console would bethree times more powerful than the existing market

leader PlayStation 2.

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FINALLY THEX-BOX

Microsoft, the first American company to enter into the

gaming business.

The Xbox is a sixth-generationvideo gameconsole manufactured by Microsoft.

It was released on November 15, 2001 in NorthAmerica, February 22, 2002 in Japan, and March 14,2002 in Australia and Europe.

It was Microsoft's first foray into the gaming console

market, and competed with Sony's PlayStation2, Sega's Dreamcast, and Nintendo's GameCube.

The integrated Xbox Live service launched in November2002 allowed players to play games online

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CONT

In 2000, Microsoft entered into agreements with more than150 game developers to develop games for Xbox.

Microsoft entered into an alliance with Konami ,a gamedeveloper in Japan, which agreed to provide some of itsfamous titles like Jurassic Park and Metal Gear.

The Xbox was discontinued in late 2005 in Japan, late2006 in Europe and early 2007 in North America.

The last Xbox game was Madden NFL 09, released inAugust 2008.

Support for out-of-warranty Xbox consoles wasdiscontinued on March 2, 2009; any in-warranty repairnow needed will not be undertaken and faulty consoles willbe replaced with an Xbox 360 instead.

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SOMEFACTSNREVIEWS

To launch Xbox, in November 2001, Microsoft spent US$ 500million covering advertising , retailer and third party softwaresupport, merchandising, and event sponsorships.

Microsoft claimed that Xbox was three times more powerfulthan Sony PlayStation2.

Industry experts also opined that though Microsoft had a goodproduct, it went wrong in its marketing.

The company created PR buzz, and began selling the consoleat a lower price, but failed to get good

games for the console. The marketing failure was attributed toMicrosofts lack of experience in this industry.

Microsofts first foray into gaming was Xbox, which waslaunched in November 2001 more than a year after SonysPlayStation2 was launched in the US.

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UK ADVERTISINGCONTROVERSY

In 2002 the Independent TelevisionCommission (ITC)banned a television advertisement for the Xbox inthe United Kingdom after complaints that it was highlydistasteful, violent, scary and upsetting.

It depicted a mother giving birth to a small boy who wasfired like a projectile through a hospital window and whoaged rapidly as he flew through the air yelling. As hesoared across a large area, he passed quickly throughstages of his life as though time was passing him by.After aging into an old man, he crash-landed into hisown grave. Dust and smoke poured from the grave.

The advertisement ended with the slogan Life is short.Play more.

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SALE RECORDS

On November 15, 2001, Xbox launched in North

America and quickly sold out.

The Xbox has sold 24 million units worldwide as ofMay 10, 2006, according to Microsoft. This is

divided out to 16 million units sold in North America,six million units in Europe, and two million units soldin Japan.

Overall, the Xbox was a success especially in NorthAmerica. Sales were also positive in Europe, butJapan saw poor sales, with only 2 million units soldthere.

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PRODUCT DEVELOPMENT & STRATEGIES

In business and engineering, new product

development (NPD) is the term used to describe thecomplete process of bringing a new product tomarket.

There are two parallel paths involved in the NPD

process: one involves the idea generation, productdesign and detail engineering; the other involvesmarket research and marketing analysis.

Companies typically see new product developmentas the first stage in generating and commercializing

new products within the overall strategic processof product life cycle management used to maintainor grow their market share.

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THE PROCESS

1) Idea Generation is often called the "fuzzy front end" of the

NPD process.

2) Idea Screening

3) Concept Development and Testing

4) Business Analysis

5) Beta Testing and Market Testing

6) Technical Implementation

7) Commercialization

8) New Product Pricing

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NPD STRATEGIES

Design for six sigma

Flexible product development

Quality function deployment

Stage-Gate model

User-centered design

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POINTS TO BE CONSIDERED :

Have a well-defined product concept (which is whereproduct-line architecture comes into play).

Provide the agency with background information on itsproducts and goals.

Conduct necessary patent research, applying for new

patents as needed. Have the manufacturing process in place and ready to go,

either internally or via outsourcing.

Have a formal business plan in place that defines fundingof the project.

Determine who will approve the marketing or advertisingplan that the agency creates (the fewer peoplecommunicating with the agency, the better).

Determine the proper timing for the launch.

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THE XBOX 360

The Xbox 360 is the second video gameconsole produced by Microsoft and the successor tothe Xbox.

The Xbox 360 was officially unveiled on MTV on May

12, 2005, with detailed launch and game informationdivulged later that month at theElectronic EntertainmentExpo (E3)

The Xbox 360 competes with Sony's PlayStation

3 and Nintendo's Wii as part of the seventhgeneration of video game consoles.

As of September 30, 2011, 57.6 million Xbox 360consoles have been sold worldwide

http://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Xboxhttp://en.wikipedia.org/wiki/MTVhttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/PlayStation_3http://en.wikipedia.org/wiki/PlayStation_3http://en.wikipedia.org/wiki/Nintendohttp://en.wikipedia.org/wiki/Wiihttp://en.wikipedia.org/wiki/History_of_video_game_consoles_(seventh_generation)http://en.wikipedia.org/wiki/History_of_video_game_consoles_(seventh_generation)http://en.wikipedia.org/wiki/History_of_video_game_consoles_(seventh_generation)http://en.wikipedia.org/wiki/History_of_video_game_consoles_(seventh_generation)http://en.wikipedia.org/wiki/Wiihttp://en.wikipedia.org/wiki/Nintendohttp://en.wikipedia.org/wiki/PlayStation_3http://en.wikipedia.org/wiki/PlayStation_3http://en.wikipedia.org/wiki/Sonyhttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/Electronic_Entertainment_Expohttp://en.wikipedia.org/wiki/MTVhttp://en.wikipedia.org/wiki/Xboxhttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Video_game_consolehttp://en.wikipedia.org/wiki/Video_game_console

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XBOX 360

Advantages:

-Cheaper than the PS3-The online community is larger than that of the PS3-Lots of popular exclusives (although the same can besaid for the PS3)

Disadvantages:

-High failure rate, often exceeding 50% (again thesevalues change from year to year)

-Uses HD DVD's which are a little outdated and can holdless data than Blue-ray-Controllers are powered by batteries (but you can getwired ones)-You have to buy a wifi adaptor to play wireless-You have to pay per month to use xbox live.

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DISCONTINUEDMODELS

Xbox 360 Core (was an entry level Xbox 360)

Xbox 360 Pro / Xbox 360 Premium (July 2007)

Xbox 360 Elite ( was released in North America onApril 29, 2007,Europe on August 24, 2007, andAustralia on August 30, 2007)

Xbox 360 Arcade (replaced the "Xbox 360 Core"as the entry level Xbox 360 on October 23, 2007)

Xbox 360 Super Elite (November 10, 2009)

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CURRENTMODELS (XBOX 360 S)

Technically designated the Xbox 360 S andmarketed simply as the Xbox 360; a redesign ofthe Xbox 360 hardware which was officiallyannounced on June 14, 2010.

This new model brings built-in Wi-Fi 802.11N,compatibility with Kinect for Xbox 360, and 250GBHDD.

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IMPROVEDFEATURES

Form factor

Touch sensitive buttons

Whisper quiet

Wi-Fi

Hard Drive (250 GB HDD)

USB slot (5 Slots)

Wireless controller

Backward compatible

Key Internal components changes-FAN

-CHIP SET (45 nanometer & integrated CPU & GPU)

-Wi-Fi (integrated wireless compatibility)

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XBOX LIVE

When the Xbox 360 was released, Microsoft's onlinegaming service Xbox Live was shut down for 24 hoursand underwent a major upgrade, adding a basic non-subscription service called Xbox Live Silver (laterrenamed Xbox Live Free)

Xbox Live Marketplace (The Xbox Live Marketplace is

a virtual market designed for the console that allowsXbox Live users to download purchased or promotionalcontent.)

Video store (On November 6, 2006, Microsoftannounced the Xbox Video Marketplace, an exclusivevideo store accessible through the console.)

Xbox Live Arcade (Xbox Live Arcade is an onlineservice operated by Microsoft that is used to distributedownloadable video games to Xbox and Xbox 360owners)

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