Microsoft's Xbox: Taking on Sony Playstation

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Case Details:

Case Code : BSTA060
Case Length : 10 Pages
Period : 1972 - 2004
Organization : Microsoft / Sony
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Videogaming

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Our goal needs to be to contain Sony.

- Bill Gates¹

Introduction

In late 2003, Bill Gates (Gates), the founder of Microsoft, was introspecting about the prospects of Xbox, its futuristic videogame console. The ambitious product launched in 2000 was receiving a lukewarm response in the market. For every ten PlayStations sold by Sony, Microsoft sold only one X-box. The development costs of the console had exceeded $ 500 million. Xbox was Microsoft's future-generation video game system that delivered powerful gaming experience. Sleek and powerful in its look (See Exhibit I), in a rich shade of black, the Xbox console emblazoned a large "X" and a signature green Xbox "jewel" positioned in its center.

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Microsoft believed that Xbox empowered game artists by giving them the technology to fulfill their creative visions, creating games that blurred the lines between fantasy and reality...

Excerpts >>

1] Dean Takahashi, "Opening The Xbox," p-112.

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