Marketing Analysis for Xbox in China

In this way, the social club would not need to invest heavily in modifying the intersection point for the Chinese merchandise.

Pricing. Pricing in the Chinese market would be a key consideration for Microsoft. The company has had difficulty with the Pocket PC in mainland china, where it was introduced at a expense that was the equivalent of more or less one month's salary for the average Chinese worker. However, if the company cuts the price in order to attract more buyers, it runs the very unspoiled risk that a secondary market will bring about where consumers purchase the less expensive boxes in China and exporting them to other countries. This would dilute the company's sales in these beas, and would cause product hold up issues as the company would have no control over warranties and other quality issues ("Xbox Launch," 2002).

Distribution. Microsoft sells Xbox through electronics retailers in the unite States; the product is too available through Microsoft directly. The company has alike had success in using distributors in Asia where Microsoft Korea, for example, has worked with Sejoong Gamebox to gain market entry and acceptance (Sung-jin, 2003). Because China is still a exploitation market, it would be nearly impossible for the company to be favored at entering the market without a Chinese partner. Because of this, the company would be well advised to use distributors in China as

it has done elsewhere in the world in order to gain penetration to key retail distribution points.

Entry into New Markets. Nintendo, Sony and Microsoft are all international marketers when it comes to their game consoles. Each continues to enter vernal markets as it sees fit, and as it determines that there is a market for its products.

At this point, India and China are the two most promising markets in terms of size and potential revenue, but they are also the most problematic due to piracy issues. Microsoft has made it gain that it will not enter either of these markets with the Xbox until piracy issues are resolved, although a "gray" market for the Xbox?and its competitors?already exists in these markets (Anand, 2004).

Taiwan, Korea jack off Xbox. (2002, October 4). Games Analyst, 1, p. 4.

Advertising Strategy. All three products are aggressively advertise using television and print ads targeting the market segment. Typically, the television ads brag a specific flagship game title, such as Halo2 for Xbox and rarefied Theft Auto for PlayStation; these products are well represented on television. The end of the commercial features the hardware platform that supports the game. A interchangeable advertising strategy would work well in China where, as in other parts of the world, software titles and their salute are likely to drive the purchase of game consoles.

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