Xbox positions itself as low-cost home entertainment

by Joe Thomas, Marketing 18-Nov-08, 08:50

LONDON - Xbox 360 is aiming to cash in on the relative success of DVD sales during a recession by promoting itself as a home-entertainment system.

Last month, a study by the British Video Association revealed that consumers were turning to home entertainment for low-cost escapism during the downturn (Marketing, 22 October). According to the report, 51.7m DVDs were sold during the third quarter of 2008 - the sector's best-ever performance in the period, up 6.5% year on year.

Xbox is understood to be looking at deals with several home-entertainment brands and rental companies. This week in the US, it kicked off a partnership with movie-rental firm Netflix, allowing films to be viewed online through the Xbox 360 interface.

The Microsoft-owned brand confirmed that it was currently evaluating the tie-up's effectiveness and a decision would be made on whether to seek a similar deal in the UK.

This Christmas, Microsoft will also back the launch of the latest title in the Banjo-Kazooie series. The game, Banjo-Kazooie: Nuts & Bolts, is exclusive to the Xbox platform and is key to the brand's strategy of appealing to a wider audience.

The game's launch will be backed by a £1m ad campaign created by McCann Erickson.

Xbox's current marketing activity focuses on individual experiences that consumers have with the 360 console, and includes a 'Live the moment' tour, visiting major UK cities.

Alex Weller, Xbox's experience manager, said the brand would continue to show how it offers the best value in the market through the range of experiences it can provide.

Xbox 360's rivals include Nintendo Wii and Sony's PlayStation 3.

Comments

James Stewart - 18/11/2008

Microsoft messed up when they refused to play ball with the BBC over having iPlayer running on an Xbox. This would be a great way to get the console positioned as a home entertainment device...