Tim+Carney

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Strategy report
TO: Proximity video team FROM: Tim Carney DATE: September 26, 2009 SUBJECT: Xbox 360 strategy analysis

This is my Xbox 360 strategy report. With fierce competition in the gaming market, it is important for us to know which console our readers buy into and for what reasons.


 * Profile**

Released statewide November 22, 2005, the Xbox 360 was Microsoft’s next generation gaming console. The project was started in 2003 by Microsoft Vice President James Allard. Microsoft shipped 1.5 million units worldwide by the conclusion of 2005 and has shipped over 31 million as of August 2009. The Xbox 360 features high definition video, online connectivity, and large onboard storage that encourages buyers to download additional content.

Revenue generated through the Xbox 360 includes: - Sales of Xbox 360 consoles - Sales of games - Sales of downloadable content - Sales of Xbox LIVE Gold Memberships


 * Competition**

The Xbox 360 has fierce competition in the video game console market. It is put up against consoles of the same generation, such as Sony’s PlayStation 3 and Nintendo’s Wii. In order to further distinguish the Xbox 360 from its competition, Microsoft reached out to partner with Netflix in November of 2008. Xbox LIVE users with a Netflix account have access to streaming movies and television through the Xbox 360. In addition, Microsoft offers select games for the Xbox 360 that are not available on other platforms.


 * Xbox 360’s Strategy**

Microsoft encourages Xbox 360 users to become a part of their LIVE online community. Fees associated with Xbox live include a $49.99 annual cost for gold membership. If you want to take advantage of streaming Netflix, however, users are required to have a separate Netflix subscription. The most popular Netflix package includes 3 physical DVD’s out at once and unlimited streaming media for $8.99 per month.

In the Xbox 360 Marketplace users can purchase a wide variety of media including: · Game add-ons and demos · Game videos and pictures · Full Xbox games · Movies (through Netflix) · Television shows (through Netflix) Xbox LIVE memberships and downloadable content provide revenue from a constantly expanding marketplace.


 * Gen-Y implication**

With the Xbox 360 part of the latest generation of gaming consoles, Gen-Y will inevitably seek out the console that has the most use to him or her. People would rather spend their money on one device that does the same as 5 individual devices. I believe the Xbox 360 will prosper among its direct competition simply because of is variety of uses.

The system is capable of: · Playing Xbox and Xbox 360 games in High Definition · Playing DVD’s · Serving as a media server for your home network · Streaming video content from Netflix (with subscription) · Download games, demos, add-ones


 * References**

Google Finance. (2009, September 26) Microsoft Stock Summary. Retrieved September 26 from [] Netflix. (2009, September) About Us. Retrieved September 26 from [] VG Chartz. (2009, September) Retrieved September 26 from [] Wikipedia. (2009, September 20) Xbox 360. Retrieved September 26 from [] Xbox. (2009, October 1) Xbox LIVE and Netflix. Retrieved October 2 from []

Blog proposal
 TO: Proximity Video Team FROM: Tim Carney DATE: October 25, 2009 SUBJECT: Blog post proposal

I suggest we do our Proximity blog post on the addition of a Blu-ray player for the Xbox 360. This post will attract new clientele as well as hold the attention of current readers interested video game console updates.


 * Rationale **

In 2005 when the Xbox 360 was released, there was great turmoil over which high definition DVD format would become the industry standard; HD-DVD or Blu-ray. The Xbox 360 was given an external HD-DVD player while Sony’s Playstation 3 was fitted with a Blu-ray player. Now that Blu-ray is the industry standard in 1080p DVD’s, Microsoft’s Xbox 360 can compete more directly with its rival the Playstation 3.


 * Sources **

Given this information, our blog post should be both informative and thought provoking for readers. The post should follow __ Xbox 360 Finally Getting Blu-ray Peripheral Support __ and ask clients if they would rather view high definition media streaming or through Blu-ray?

 [] []

Report proposal
TO: Proximity Video Team FROM: Tim Carney DATE: November 20, 2009 SUBJECT: Proposal for report on Xbox 360

Since its public release in Q4 2005, the Xbox 360 has proven it can stay in competition with its rivals and provide Gen-Y with the latest in console video game console technology. I propose to write a report on how the Xbox 360 is expanding to cater the needs of Gen-Y.


 * Need**

Although widely popular among Gen-Y consumers, Microsoft’s Xbox 360 has received criticism and needs to improve on:

· Better quality control, new electronic devices should not fail under normal use · HD-DVD is dead, Blu-ray support is needed to compete in this tight market · Built in WiFi, $100 is outrageous for a wireless adapter when it comes built in with the Wii and PS3

Microsoft has taken steps to alleviate many issues pertaining to the Xbox 360. Most importantly, Microsoft has made improvements to quality control resulting in fewer failing consoles. There have also been advancements towards the expansion of playable media; Blu-ray disc will soon be playable with Xbox 360.

Clients of Proximity who wish to target Gen-Y consumers need this report to fully understand the potential the Xbox 360 console has. This report will help Gen-Y readers make a strategic purchase of a console that will meet their own needs.


 * Topics**

The proposed report, “Xbox 360 buyers guide” will cover the following topics:

· On-Demand video availability through Microsoft and Netflix · LIVE, the largest online gaming network · What to steer clear of in terms of buying · The Future of Xbox 360, keeping up with changing technology and standards


 * Sources**

BusinessWeek. (2009, November 18) Game Console Makers at a Crossroads. Retrieved November 20 from []

CEPro. (2007, July 15) Microsoft’s Flacon to reduce cost, Increase quality of Xbox 360. Retrieved November 20 from []

HD-Report. (2009, November 15) Xbox will add streaming HD, social apps, audio and news. Retrieved November 20 from []

Netflix. (2009, September) About Us. Retrieved September 26 from []

Wikipedia. (2009, September 20) Xbox 360. Retrieved September 26 from []

Wikipedia. (2009, November 20) Xbox 360 Technical Problems. Retrieved November 20 from []

Gizmodo. (2009, October22) Balmer talks Natal, Says Blu-ray Add-On for Xbox coming. Retrieved November 20 from []

Xbox. (2009, October 1) Xbox LIVE and Netflix. Retrieved October 2 from []

Team conference presentation proposal
//paste team conference presentation here//

Sales letter and report prospectus
December 15, 2009 Mr. Carlton Banks, Director of Marketing Audi of America, Inc. 2200 Ferdinand Porsche Drive. Herndon, VA 20171 USA

Dear Mr. Banks:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Audi of Americas’ need to promote its product to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing the use of video on-demand services to market your products.

As you noted yesterday, Audi of America feels that it must establish a working relationship with Gen Y in order to sell its vehicles to that cohort when they are in a market for a new automobile. I believe Proximity can work with you to develop a comprehensive strategy that uses video on-demand to appeal to Gen Y.

We can provide you with customized surveys and focus group results to help shape Audi’s image, as viewed by Gen Y. Our faculty consultants can advise your sales force on how to position new products, and our production teams can make multi-platform ads that appeal to Gen Y. Our research shows that placing condensed advertisements within videos available through on-demand services is a far more effective strategy for reaching Gen Y than buying conventional banner ads.

I invite you and your staff to join us at Proximity’s Towson office for the special focus group session on Audi’s brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your goals.

Sincerely, Tim Carney Associate Media Analyst

Enclosure
 * About Proximity **

Proximity is a Gen Y on-demand media strategy group. Its analysts know how to connect with their generation using campaigns designed for the new media landscape. Because it is associated with Towson University, Proximity has immediate access to a large student population and the expertise of faculty who specialize in marketing and media research.

Proximity offers its clients a full range of services for developing and executing customized campaigns that can reach any segment of Gen Y. It regularly conducts on-line surveys and focus group sessions to keep marketers up to date on the social trends and emerging technologies that determine how this cohort communicates and what it purchases. Visit Proximity at www.proximity.edu to sample its research and see examples of successful campaigns.