Xbox One SWOT (platform mediated networks)


In this blog we discuss Xbox one strengths, weaknesses, opportunities and threats (platform mediated networks). What do you think about this analyses?

 

SWOT

Strengths:

Large user base:

Microsoft previous console Xbox360 has sold almost 85 million units. Xbox is well known brand in the gaming industry so it is easier to introduce a new product to the market. There is lots of potential for the product.

 

Xbox Live:

Microsoft first introduced Xbox Live in 2002. It was first console online service in the market. Many critics have stated that it’s still the best online experience in the console market. This is the service how Microsoft can differentiate from its competitors.

 

Weaknesses

 

Too US-centric:

Most of the Xbox One sales come from USA. USA is really big market area but it’s still too small market to get enough money to cover all the cost that designing and marketing new gaming device take. Also every new feature that comes to the Xbox One is firstly launched in USA. Maybe after year or so the same feature comes to the European market. There are 500 million consumers in the Europe (ec.europa.eu, 2014) so there is a really huge market opportunity.

 

Opportunities

China:

After 14 years china removed their console ban and Xbox One had first-mover advantage (http://www.digitaltrends.com, 2014). They were first company that start selling video game consoles (Xbox One) after that ban. $13 billion Chinese gaming market (www.digitaltrends.com, 2014) has lot of future potential and first-mover advantage is really big opportunity to any gaming company. Microsoft also has some brand visibility in China due to their other non-gaming products.

 

Xbox Live:

Xbox Live unite players all around the world. With this service Microsoft can also start selling games and other products directly to the customer. In the future they can change console markets and cut all middlemen and start providing different products only this way – digitally.

 

Threats

 

PlayStation 4:

PS4 is a major competitor for Xbox One. PS4 have same target group and they release similar games for their system. If PS4 wins majority of the market it is possible that game developers start to release games mainly on PS4 and gamers choose PS4 platform. It is really important to grow Xbox One install base at the beginning of the life cycle and beat PS4 in the major markets.

 

Game markets:

Consoles are only one platform to play games. People are moving to play games with different devices like tablets and mobile phones. The change is already seen in handheld markets and it’s only a matter of time when people find cheaper and not so time consuming ways to play games.

 

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2 responses to “Xbox One SWOT (platform mediated networks)”

  1. Didrik Lasanow says :

    Great summary of the current situation of the Xbox One. However I believe that you could have been deeper in the subject. I will here below develop some points that could -in my opinion- have been added to your SWOT analysis.

    In my point of view there is another main weakness : its reputation. The previous Xbox suffered from many failures. More than 15% of them presented defaults that had to be fixed ! Therefore consumers still have in mind the “ring of death” (red signal that appears on your console when there is a problem). This is a reason why Playstation is the console leader outside the U.S. Playstation is still considered as a high quality consoles provider. However for the live service it is completely different. Xbox Live is much reliable than the Playstation Network since it was down during several weeks due to a hacking. Therefore I totally agree when you are considering Xbox Live as a strength.

    I think that we could add the exclusive games as a strength. Xbox benefits from the fact that it is a Microsoft product to get some great exclusive games. Microsoft has developing studios and strong partners. These developers make their games only available on Xbox. The most famous example is probably the Halo saga. I think that for these reasons Xbox has an advantage on its competitiors on games.

    I also would have added a threat : virtual reality. This is a technology is quite new but can seduce gamers that are looking for an immersive experience. However I also think it could also be an opportnity for Xbox. If Xbox can get some virtual reality developers partners they could develop games with them and enjoy a strong competitive advantage on its competitors.

    The points I developed above are for me significant enough to be included in your SWOT analysis.

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