Microsoft xbox innovation

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Originally dubbed the DirectX Box , the console was intended to be the first game system built like a PC, bringing all of the flexibility and power of a gaming rig to the console market. Many still remained skeptical of what they saw, seeing nothing more than a fancy PC dressed up as a gaming console.

Microsoft continued to push the envelope on both the console and its marketing budget with more demonstrations at the Electronic Entertainment Expo a few months later. It was there that the Xbox developer first connected with Bungie Studios, the creators of a third-person shooter Halo: Combat Evolved. This was the move that helped make history. Sales of Halo shattered all previous records, with more than 1 million copies of the game sold in the first few months of its release.

Xbox release dates in Japan February 22, and Europe March 14, soon followed, though the system failed to catch fire in either of the two regions with the same energy that fueled its arrival in North America. While the dramatic reduction in price made it nearly impossible for the company to earn any profit whatsoever from sales of the system, the move succeeded in encouraging more households to bring home an Xbox. It also enabled the Xbox to outsell the just-released Nintendo GameCube in the years that followed, further establishing the Xbox as a force to be reckoned with in the console wars.

Early adopters were treated to a multiplayer gaming experience that was entirely new to the console industry, pitting players against competitors from all around the world in a communal environment. Along with being able to connect with friends and strangers , Xbox Live also made it possible to download new content and take multiplayer interaction to a new level.

Popular game developer Electronic Arts took issue with the subscription-based structure of Xbox Live and opted out of releasing their popular Madden football games for the Xbox in , only to cut a deal with Microsoft a year later.

Still, Microsoft pushed forward with new features aimed at making the Xbox — and its heirs — the all-purpose online media hub that it was supposed to be all along, with Xbox Live Arcade launching in November The success of Halo 2 stood in stark contrast to the floundering sales of the Xbox itself, which continued to cost Microsoft significantly more to produce than it could ever rake in with sales.

On May 12, , Microsoft unveiled the Xbox , the next generation of its gaming console. With plans to release the in November, the company clearly hoped that an early debut — almost a full year before the PlayStation 3 and Nintendo Wii were scheduled to arrive — would put the in a good position to dominate the market.

It also meant the writing was on the wall for the original Xbox. Later that year, production of the Xbox officially ceased, with the final tally of sold consoles sitting at around 24 million units. What Microsoft had developed was a market for consumers that have not yet been entered. Kim and Mauborgne believed that organizations that create value innovation tend to build opportunities from scratch rather than fighting rivals and competing on price.

Growth Strategies, Innovation, Alliances, Execution 4 Competitive Environment According to Osathanunkul , the video gaming industry consists of a small market that had recently blossomed in the last 14 years. Microsoft understood their position when they initially entered the market with their first product Xbox Marshall Their study suggests that a buyer of a console is more likely to fall in love with the control scheme as the main factor of enjoyment, rather than the innovation of the supporting components like the latest video game.

Using the example of the evolution of how society views their phones, Barwise and Meehan described how Motorola managed the market from through , until they were eventually overtaken by Nokia. In the market 6. Growth Strategies, Innovation, Alliances, Execution 6 changed again as Apple Inc introduced the I Phone and competitors Nokia and Motorola were left in the dark as a new market leader battles head to head with a formidable rival of Samsung.

The authors explain that companies must be wary of falling behind in technology while ensuring that their innovation does not go beyond their understanding of who they really are. Growth Strategies, Innovation, Alliances, Execution 7 The console also has voice recognition feature that allows the user to dictate what feature they want to activate.

A research article done by Llanos , highlights each generic strategy along with an organization that embodies the model. Low-Cost Provider Strategy — Is a strategy that focuses on being the overall lowest cost against all their rivals with the goal of attracting a large set of consumers purchasing the same product. Wal-Mart offers a lowest price match guarantee that allows consumers to bring their receipt should they find a product that is less than what the company offers. As a result, Walmart will match any competitors who offer the same product for less Wal-Mart Broad Differentiation Strategy — Focuses their strategy on showing what sets them apart as a company, and how their product compares to the competitors to attract a big scale of buyers.

Focused Low-Cost Strategy - This business strategy targets a much smaller buyer segment that typically provides to a market of niche customers. While in theory, the concept is similar to the low cost provider strategy, with the organization offers a lower price vs. Amazon Inc. Growth Strategies, Innovation, Alliances, Execution 8 a competitive rate.

Amazon is known for having a friendly website along with the reputation for having unmatched customer service in comparison their brick and mortar counterpart Wal-Mart who competes with Target and other local groceries market Oxford Focused Differentiation Strategy — Much like the Low-Cost Strategy, this business model directs its attention to a smaller buyer segment that is specific to a market of niche consumers.

An example of this is Whole Foods Market. Their primary niches are consumers who seek natural and organic foods. These consumers typically visit Whole Foods Market with the expectations that the products they get are of a higher caliber of quality in comparison to other markets and thus will likely be satisfied regardless of the amount they pay Whole Foods Market Best-Cost Provider Strategy — Combines both the low cost and something that sets the company apart from its competitors.

Microsoft has been known to offer competitive products since their introduction of the Operating Systems back in Microsoft More recently they have understood that to be competitive in the video gaming industry, they need to modify their price accordingly to ensure that consumers are buying their product Mangalindan According to these two authors, understanding both tangible and intangible resources and the fact that neither should go unnoticed when evaluating the assets of an organization.

Microsoft has a strong financial backing. Growth Strategies and Resources through Partnerships and Alliances To effectively grow beyond to other markets, Microsoft has used its resources to acquire more than companies.

Some of the notable acquisitions include Mojang the creator of the popular game Minecraft, Skype and Hotmail. These are all a part of the success of the organization. Growth Strategies, Innovation, Alliances, Execution 10 can acquire smaller companies to strengthen the brand under a larger name. According to Thompson and Strickland , the success of these acquisitions, partnerships and alliances are based on the concept of satisfying both parties for the purpose of growth.

There was a massive amount of pent-up energy and creativity, and the Hackathon served as an outlet for people who were passionate about things they wanted to build.

They wanted to build things that mattered. They wanted to help solve big problems the company faced. They wanted some parameters and guardrails on where they could add fresh thinking. The Hackathon kept growing, and each year the company kept adding new ways to spur innovation. One year they introduced hacking with customers, so employees could first-hand experience customer obsession and understand how customers interacted with their products.

Initially, however, mostly engineers embraced the Hackathon, who latched on to the concept as it spoke to them. Hacking traditionally meant writing code, something Microsoft engineers were good at doing. But the company did not just want to bring engineers on the innovation journey; it wanted to involve employees from all disciplines. As a result, the company made a concerted effort to encouraging participation from all roles and organizations within the company.

And it worked. For example, one group of employees created a new process for managing inter-company transfers or moving to different jobs within Microsoft. In early the coronavirus pandemic hit the world, and Microsoft employees began working from home. Holding an event where people gathered in large tents was not possible. The magic, excitement, and energy that spawned innovation could have been lost. But creativity always finds a way to shine, and incredible inventions, including the creation of the Internet, were pioneered by individuals scattered across the world, something I have discussed here.

Microsoft needed to recreate the energy, passion, and cohesiveness of the Hackathon while the entire company was working from home. Innovation still required people to collaborate, ideas to clash, and creativity to flow.