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How Sony beat Microsoft using this Basic Marketing Mix Business Tool

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THE 5PS OF MARKETING

PRODUCT
Microsoft announces details of next release for Xbox One. Sony announces details of next release for PlayStation 4. Both new product descriptions had some unique features and benefits.  [Xbox will seem to appeal to a more broad audience with more entertainment options; PS4 will seem to be more powerful and more gamer-centric but will also include movie, music and video services that can stream across its platforms. Both console products are similar looking with Sony winning with an edge on its slightly more sleek, appealing design.]

 

 


Price can be a deciding factor. The release of the price for each console is a large component in how these companies’ target audiences reacted.

Xbox: $499
PS4:  $399

 

PLACE
Both products will be sold through similar distribution channels (entertainment-related outlets) and available in time for the 2013 year-end (Christmas) holiday shopping.

PROMOTION:
This is where it gets interesting. Last February, Sony promoted a teaser of information letting people know the PS4 is forthcoming.  In May, Microsoft promotes more than just a teaser, offering product details (with news about limiting game usage) that create negative rumours and press. This simmers for a month, without any meaningful Microsoft response, then people later find out the rumours are true. Both companies officially released their new product details at a key industry event (E3 press conferences in Los Angeles, CA). By the way, Sony held its press conference nine hours following the Microsoft press conference.

Xbox: New games and features with limited usage. [Users will need to connect to the internet every 24 hours for games to work (limits offline gaming time). User accounts can be used on other consoles to access libraries, though only with an hourly internet check. Also, new limits in how users can share games with friends and, responding to privacy concerns, its Kinect sensor will limit how it records conversations during play.]

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