Microsoft's Xbox 360 Surges Ahead of the Competition

In marketing we have something called Unique Selling Propositions [USPs] which are features and benefits that differentiate one product from another in the market, leading to sales. Here are the USPs of the three main console platforms.

Sony (SNE) Playstation PS3:

• Blue Ray player, so you can use it to play HD home movies.

Nintendo (NTDOY.PK) Wii:

• Gesture interface.
• Amazing Nintendo first party game titles appealing to a broad demographic.

Microsoft (MSFT) Xbox 360:

• Elegant design enabling it to be sold at the lowest price point.
• The biggest and best catalogue of games. More than the other two machines put together.
• Xbox Live, by far the biggest and best online gaming portal.
• Rampant piracy makes games free for those who are happy to steal.

And of course the market responds to these USPs. Sony convincingly won the last round of the game console war with PS2. This generation, with PS3, they are coming convincingly third and last. Despite all the analysts predicting otherwise. Obviously the analysts weren’t looking at the USPs.

So now we are in the biggest selling season at the critical mid cycle phase when the meat of all console sales are made. And Microsoft are making hay with the 360.

• In Italy and the UK (both big Sony strongholds), the 360 now outsells the PS3 two for one.
• In America too the 360 is selling twice as fast as the PS3.
• Some weeks the 360 is even outselling the PS3 in Japan.
• 7 million 360s sold in European territory. 2 million since June as sales ramped up.
• 360 sales to date now ahead of lifetime sales of the original Xbox. Well before 360 sales reach their peak.

Obviously the Wii is still doing even better. But then Nintendo realised that they could market to everyone, so they have vastly more potential customers.

Comments

[Gaucho420:]

I don't buy 1) Elegant design enabling it to be sold at the lowest price point & 2)The biggest and best catalogue of games. More than the other two machines put together.

I won't even comment on the piracy comment, as that is ridiculous.

First, I don't see how the 360 is considered elegant. Bruce, are you just saying these things to get reactions? The damn machine breaks down all the time, red ring of death anyone?! There's nothing elegant about that, period! Come on now.

Second, I'm not so sure I agree with the best catalogue comment...for what audience? Hard core crowd, for sure. Mass audience crowd? Hell no! I hear more regular people talking about getting Wii's for Wii Sports, Wii Fit, Guitar Hero or Rock Band than anything else. And what about Mario Kart? Clearly, its going to be the best selling game this year. So I would say the answer to that question depends on exactly who is answering it.

The reason the 360 is selling better is PRICE and that is it. The sales chart on the hardware matches the price cut, so that is it. While people may discover Xbox Live is a great system, once they own it, no one I've ever spoken to outside of a hard core gamer (who has a 50% chance of owing a 360 since the PS3 IS the only other choice) has ever said...mmmm,I'll buy a 360 for Xbox Live. That simply doesn't happen. But a price drop? I know at least two people who said they would buy one in response to lower cost.

Its all about price, always has been, always will. Unfortunatly, without the hard-drive at $199, the 360 is still behind the Wii valuewise.

2008 Nov 24 10:23 PM

[Tom B:]

Gee, If I wanted to sell a game console at a LOSS, maybe I could sell a lot, too.

2008 Nov 25 01:23 AM

[James Wilson:]

The WII would make a great platfrom for use with remote controlled robots !

2008 Nov 30 04:04 PM

[jami:]

*cough* hack... *cough* hack, hack....

2008 Dec 15 07:40 AM