This year’s Black Friday
was a major success for Microsoft, mainly because of the increased sales of the
Xbox One. The Xbox was the bestseller on Black Friday and even topped the market
leader Sony with its PlayStation 4. This was possible due to huge price
reductions and bundles. Originally the Xbox One was available for $500 and then
lowered to $400. Finally it was available for $330 to undercut Sony’s PS 4. Although
Sony’s PS4 might be winning the video game console war, market share for Xbox
is increasing. This year Xbox One accounted for more than half of all video
game console sales on Black Friday with 62 percent. Microsoft’s latest system
took over 53 percent of all sales, while the PlayStation 4 only sold 31 %. Even
the Xbox 360, which came out 2005, had an increase in sales. Although Sony’s
system came in 2nd, their sales still increased by 15 percent. Adding
to that the bundles were the main reason why Microsoft’s sales increased. 90 %
of all purchased sales on Black Friday were bundled with a game. Interesting to
see was also that 55 % of the PS4 customers bought the product for themselves,
while 66 % of the Xbox One customer bought it as a gift. All in all Sony’s
PlayStation 4 still rules the gaming console market with 13.3 million units
sold this year (September 2014), followed by Nintendo Wii U with 7.29 million
units and Microsoft’s Xbox One with 6.7 to 7.35 million units sold.
This links to marketing in
general and changing market share. We discussed different markets in class and
were taught about every brand having a different market share. In this case Microsoft’s
market share increased through the units sold on Black Friday this year, which
increased the market concentration too, which makes it more competitive. Although Sony is the leader of the
gaming console market Microsoft’s sales are increasing immensely and ranks the
brand as second on the market. This only happened, because they changed one of
their 7 Ps/ 4 Ps, the price. To attract customers they lowered the price and
even made the product cheaper than its leading competitor’s product, the
PlayStation 4. Adding to that all of the gaming console brands had a strategy
to sell more consoles. They bundled the console with a popular game which made
it more appealing to the customer. Therefore it links to strategy of the CUEGIS,
because Microsoft changed their selling strategy / marketing objectives, which
resulted in great success.
