Creative Brief How Will Xbox Regain a Sustainable Advantage Over

MKTG 6002:IMC                            Tanya Wickett                       By: Gary Ghoukasian

                   Creative Brief
  How Will Xbox Regain a Sustainable Advantage Over
                   PlayStation?
Market and Industry Profile
         The video game market has plateaued in recent years and is expected to decrease in the
next few years, to the point where experts suggest that the need for the next generation of video
game consoles may become obsolete (Gaudiosi, 2013). By 2019, the PC and console gaming
market will have reduced to $41 billion, down more than $5 billion from 2014 (Juniper
Research, n.d.). However, the global media and entertainment market in general is expected to
expand consistently through to 2020, increasing by $400 billion from 2015 to 2020 (business-
standard.com, n.d.). If the lifetime of the previous video game console generation is any
indication, the current generation (XBONE, PS4, WiiU) will be around until 2021, which means
these trends and recommendations are within the scope of the current generation of consoles.
Virtual reality (VR) seems to be the next step in immersing the consumer in their desired
gaming/media entertainment environment. As any new and thrilling technological advancement,
VR is projected to grow in market value exponentially. It’s worldwide revenue in 2015 was $660
million, and is projected to grow to almost $23 billion by 2020 (SuperData Research &
gamesindustry.biz, n.d.).

Market and Brand Position
         Xbox made the questionable leap this generation with the Xbox One by integrating so
many media and entertainment features, allowing the PlayStation to seize the reputation as the
technically superior machine for hardcore gamers. While the PS4 seems to be superior in its
ability to handle complex games, Microsoft expended its industry power to attain exclusive
gaming rights and media contracts. The importance of computing power is all evidenced by the
sales data, with the PS4 bringing in double the amount of sales of the Xbox (VGChartz, n.d.).
However, this may have been a positioning move on Xbox’s behalf, in order building the media
relationship early in the mind of the consumer. This sacrifices short-term profits, which are
hedged by Microsoft’s other successful venture, but increases the chances of long-term majority
market share. See Exhibit 1 and 2 for current and projected market positioning maps.

Competitor Profile
         The core competitors are the PS4 (Sony) and WiiU (Nintendo), as well as the huge
mobile gaming industry as an indirect competitor. Nintendo and Sony both market their products
as lower priced than Microsoft’s Xbox, however, Nintendo is known to have a technically
inferior product, which could classify them as an indirect competitor. On the other hand, Sony is
regarded to have a superior product for gaming purposes, and at lower prices. The promotional
standpoint is where Xbox tries to catch up on its shortcomings, by addressing its superior all-in-
one multimedia capabilities. This promotion goes straight through to the name, Xbox One, which
is one box that satisfies all entertainment needs. In this respect, the PS4 promotes their new
exclusive games and PlayStation network offerings, while Xbox promotes their games as well as
the entertainment experience, including add-ons like the Kinect, whose Sony equivalent is not
promoted strongly. To conclude:

MKTG 6002:IMC                             Tanya Wickett                       By: Gary Ghoukasian

      Sony PlayStation 4:
           o Strength: Superior technical capabilities, strong brand loyalty
           o Weakness: Lack of awareness in multimedia capabilities
      Nintendo WiiU:
           o Strength: Accessible, brand identity strong as innovative brand
           o Weakness: Lack of technological strength and multimedia capabilities
      Mobile Gaming:
           o Strength: Super accessible, multimedia capabilities (phone acts as game console,
              TV, internet, etc.)
           o Weakness: Technological strengths

Primary Target Market profile
    Demographics: 20-35 years old, male and females, married and single, middle class
    Psychographics: Grew up with video games, like to embrace new technologies and view
      their media on various mediums
    Behavioural: Having fun with friends, socializing, feeling nostalgic
Secondary Target Market profile
    Demographics: 12-19 years old, male and females, single or in relationship, middle class
    Psychographics: like to view media on many unconventional mediums, enjoy convenient
      mobile gaming
    Behavioural: Having fun with friends, socializing, keeping up with trends

Budget
       The budget is non-specific, and virtually limitless (any budget can be justified based on
market share gained from Sony)

Problem and Overall Objective
         Xbox has lost a lot of sales to the PlayStation based on its reputation for being
technologically inferior. This is not a major issue, as global video game revenue is decreasing
steadily, and out of the main competitors, Xbox is leading the charge on the general
entertainment console. Therefore, Xbox must attempt to improve their image as a leading
gaming console, while reinforcing undertones of overall multimedia entertainment. They can
easily do this by investing in the virtual reality industry and being the first major console to
release or partner with a virtual reality kit. By doing this, Xbox strengthens their image as
innovative and technologically advanced, as well as supporting the entertainment factor (virtual
reality and entertainment go hand in hand). Introduction of virtual reality will be seamless as the
Xbox Kinect is already an established A/V technology is integrated with the Xbox One.
      Quantitative Goals:
            o Raise video game console market share to 40% by 2018, currently approx. 25%
            o Increase Xbox Live awareness 45% by 2018, currently approx. 35% (Xbox Live
                has many features related to multimedia entertainment), (Ofcom & Kantar Media,
                n.d.)
            o Create 35% VR awareness by 2020, currently there are no VR capabilities
      Qualitative Goals:

MKTG 6002:IMC                             Tanya Wickett                       By: Gary Ghoukasian

           o Introduction of VR will cause consumers to think of Xbox as a technological
             leader, leading to altered perceptions, independent of the individual’s interest in
             VR
           o VRs integration into media entertainment will support Xbox’s stronghold on the
             multimedia entertainment aspect of the console
           o Continuing to reach agreements on exclusive game and media rights will cause
             fans to prefer Xbox over PS
           o VR and exclusivity rights will attract the younger secondary target market

Positioning Strategy Statement/Creative Strategy
         On the foreground, Xbox’s positioning statement should stress its technical capacity, and
on the background, it should emphasize the entertainment aspect of the console for long-term
success. The statement must remain fun, to reflect the personality of the product. Finally, it must
thrill the consumer and excite them about the upcoming technological advances in entertainment,
all as a result of the Xbox One. We can use emotional, lifestyle, and humorous appeals, all to
promote the double-sided nature of the console. For example, a commercial where a gamer is
intensely in a game and is in a flow state, and the screen flips, and they are with friends,
watching Netflix. This exemplifies the emotional attachment to the console.
      Sample statement:
             o The Xbox One is the place to go for an unparalleled gaming and media
                 experience, causing the player to be lost in hours of interactive entertainment.

Creative execution
        The Xbox One should work on partnering with several media outlets, including TV,
movie, and YouTube gaming mediums. Gaming on YouTube is very popular, and having
YouTube channels create original content operating the console and using any new features will
act as a trial purchase for many consumers. Targeting TV shows and movies watched by gamers
will also be effective for widespread targeting. Finally, as sports gaming is a large aspect of the
console’s success, integration of multimedia sports targeting (i.e. NBA Finals sponsorship)
would be effective.

MKTG 6002:IMC                       Tanya Wickett            By: Gary Ghoukasian

                                       Exhibits

Exhibit 1: Current Consumer Perception On Brand Attributes

Exhibit 2: Future Consumer Perception On Brand Attributes

MKTG 6002:IMC                              Tanya Wickett                        By: Gary Ghoukasian

                                            Works Cited

Gaudiosi, J. (2013, June 9). Xbox One And PlayStation 4 Could Be The End Of Video Game
       Consoles. Retrieved June 13, 2016, from
       http://www.forbes.com/sites/johngaudiosi/2013/06/09/xbox-one-and-playstation-4-could-
       be-the-end-of-video-game-consoles/#2a679fb44fd4

Juniper Research. (n.d.). Global PC and console games revenue in 2014 and 2019 (in billion U.S.
        dollars). In Statista - The Statistics Portal. Retrieved June 13, 2016, from
        http://www.statista.com/statistics/237187/global- video- games-revenue/.

Ofcom, & Kantar Media. (n.d.). Are you aware of the following online services?. In Statista -
      The Statistics Portal. Retrieved June 15, 2016, from
      http://www.statista.com/statistics/291697/online- gaming-services-ranked-by-awareness-
      in-the-united-kingdom-uk/.

SuperData Research, & gamesindustry.biz. (n.d.). Virtual reality (VR) video gaming sales
      revenue worldwide from 2015 to 2020 (in billion U.S. dollars). In Statista - The Statistics
      Portal. Retrieved June 15, 2016, from http://www.statista.com/statistics/499714/global-
      virtual-reality-gaming-sales-revenue/.

VGChartz. (n.d.). Global unit sales of current generation video game consoles from 2008 to 2015
     (in million units). In Statista - The Statistics Portal. Retrieved June 15, 2016, from
     http://www.statista.com/statistics/276768/global- unit-sales-of-video-game-consoles/.

Website (business-standard.com). (n.d.). Value of the global entertainment and media market
       from 2011 to 2020 (in trillion U.S. dollars). In Statista - The Statistics Portal. Retrieved
       June 13, 2016, from http://www.statista.com/statistics/237749/value-of-the-global-
       entertainment-and- media- market/.