Microsoft's Stealth Attack on Japanese Schoolchildren

Strategic Insights -

In a last-ditch attempt to boost the flagging profile of the Xbox in Japan, Microsoft is launching a "stealth attack" on six-year-old schoolchildren. This week, the American software giant will begin distributing free Xbox consoles to over 70 primary and junior-high schools in Tokyo's Suginami-ku suburb. The goal is to instill computer literacy at an early age, with the consoles being specially set up for "educational purposes" to teach vital IT skills like video conferencing and online lecture attendance.

Key Takeaways:

  • Microsoft is distributing free Xbox consoles to 70 primary and junior-high schools in Tokyo's Suginami-ku suburb to promote computer literacy among six-year-old schoolchildren.
  • The consoles will be specially set up for "educational purposes" to teach IT skills such as video conferencing and online lecture attendance.
  • Education officials in Suginami-ku have raised concerns that a national network of inter-school video conferences would require counterparts across Japan to be equipped with yet more Xboxes and the corresponding Xbox Live! broadband software.
  • Microsoft's initiative is seen as a last-ditch attempt to boost the flagging profile of the Xbox in Japan, where it holds only 17 per cent share of the console market.
  • The company is preparing to launch the second-generation Xbox, but faces stiff competition from Sony's PlayStation3, which dominates the market with 68 per cent share.
  • Education officials hope the initiative will become a "good model case" for using TV video conferencing in the education system.

Statistics:

  • 70 primary and junior-high schools in Tokyo's Suginami-ku suburb will receive free Xbox consoles.
  • The Xbox has only 17 per cent share of the global console market, compared to Sony's PlayStation2 which dominates with 68 per cent.
  • The second-generation Xbox is set to be released, with Microsoft hoping to make an assault on the lucrative Japanese market.
  • The Xbox brand is relatively unknown among young Japanese children, making it difficult for Microsoft to penetrate the market.

Sources:

  • Leo Lewis in Tokyo, The Times, 2005 (c)