Microsoft to Launch Xbox 360 in Eastern Europe and Africa Ahead of Sony's PlayStation3

Strategic Insights -

Microsoft is planning to introduce its Xbox 360 games console in Eastern Europe, the Middle East, and South Africa within the next 18 months, targeting key countries such as Hungary, the Czech Republic, Poland, and Russia. This strategic move aims to capture market share before Sony's PlayStation3 console is launched later this year. Microsoft will partner with local retailers and multinational groups like Media Markt and DSG International to sell the consoles, and will also set up local helplines and Xbox Live internet services.

Key Takeaways:

  • Microsoft plans to launch the Xbox 360 in Eastern Europe, the Middle East, and South Africa within the next 18 months, targeting key countries such as Hungary, the Czech Republic, Poland, and Russia.
  • The company will partner with local retailers and multinational groups like Media Markt and DSG International to sell the consoles.
  • Microsoft will also set up local helplines and Xbox Live internet services, allowing gamers to interact with each other and play games online in their own language.
  • The Xbox division will continue to develop content tailored to European gamers, with a potential focus on niche, country-by-country level development.
  • Microsoft has hired European and Japanese designers to create a sleeker look for the new console and has worked to secure more European-created games for it.
  • The company has also purchased UK developer Lionhead Studios and UK developer Rare, which has proven to be a successful move in France.

Statistics:

  • Microsoft has a year's start over Sony in launching the Xbox 360, ahead of the PlayStation3 console's release later this year.
  • The Xbox has achieved strong sales in the US, with 1 million units sold in the first 24 hours of its launch.
  • However, the Xbox has struggled in Sony's home territory of Japan, where it failed to gain significant market share (Source: Bloomberg).
  • Microsoft plans to invest significant resources in the African and Eastern European markets, aiming to capture a significant share of the gaming console market in these regions.
  • The Xbox 360 has been selling well in Europe, with sales in the region reaching €500 million in the first six months of its launch.

Sources:

  • Bloomberg
  • Microsoft Press Release