1 International Marketing November 8th 2013 Supervised Group Case Study – Mathieu-Claude Chaboud – Groupe ESC Dijon-Bourgogne Through the analysis of the following documents, as well as additional sources you may be able to find, answer the following questions: - Summary of the initial situation in terms of customers, competition, product design, price and distribution - Causes of and lessons from the evolution of the product and market elements at play o Features & product design o Distribution o Communication - What are the big lessons (from the class' content) that can be learnt from this case? - What can we say about the marketing operations at Microsoft? - To answer the questions above, engage in a SWOT/TOWS analysis for Microsoft Xbox One console in general and on its international markets Your attention will of course be focused on the international marketing elements at play here but do not neglect general marketing knowledge to be analyzed and learned. Following this supervised case study session, you will have to produce a report of less than 10 pages, indicating who in the group did which part. This report is to be handed electronically to me in two weeks, November 21st, that is the day before the release of the Xbox One on the market. 2 Xbox One revealed 21 May 2013 (Source: T3 Online) Xbox One has been unveiled at Microsoft's next-generation console reveal event in Redmond, Washington After months of speculation and rumour, Xbox One has finally been unveiled by Microsoft. The software giant revealed its next-generation console to the world's tech and gaming media from its headquarters in Redmond, Washington. Xbox One was revealed by President of Interactive Entertainment Business, Microsoft Corporation, Don Mattrick, to a tent packed with journalists at the MS campus and fans and media watching via media streams around the world. "This system is built to amaze on day one," said Mattrick. The new rival to Sony's PlayStation 4 does not require a constant internet connection, as had been widely rumoured. While much of the next-gen machine, set for a winter release, is based around cloud connectivity, gamers will be able to use it offline, too. However, developers can use external servers to boost the console's on- board specs, meaning that some games will inevitably require a connection. The new Xbox packs in an AMD processor eight times faster than the Xbox 360, 8GB RAM, a 500GB hard drive, a Blu-ray player that supports 4K output, gigabit Ethernet and a new proprietary wireless protocol to reduce latency. The console weighs in at around 7lbs, the same as the original Xbox 360, but is 10% larger in size. A new 1080p, 60 frames per second HD Kinect comes packaged with every console. The peripheral now has 60% better field of vision, Active IR tech to eliminate light interference, can track six skeletons at once compared t ...

1. 1
International Marketing
November 8th 2013
Supervised Group Case Study – Mathieu-Claude Chaboud –
Groupe ESC Dijon-Bourgogne
Through the analysis of the following documents, as well as
additional sources you may be able to
find, answer the following questions:
- Summary of the initial situation in terms of customers,
competition, product design, price
and distribution
- Causes of and lessons from the evolution of the product and
market elements at play
o Features & product design
o Distribution
o Communication

2. - What are the big lessons (from the class' content) that can be
learnt from this case?
- What can we say about the marketing operations at Microsoft?
- To answer the questions above, engage in a SWOT/TOWS
analysis for Microsoft Xbox One
console in general and on its international markets
Your attention will of course be focused on the international
marketing elements at play here but do
not neglect general marketing knowledge to be analyzed and
learned.
Following this supervised case study session, you will have to
produce a report of less than 10 pages,
indicating who in the group did which part. This report is to be
handed electronically to me in two
weeks, November 21st, that is the day before the release of the
Xbox One on the market.

3. 2
Xbox One revealed
21 May 2013 (Source: T3 Online)
Xbox One has been unveiled at Microsoft's next-generation
console reveal event in
Redmond, Washington
After months of speculation and rumour, Xbox One has finally
been unveiled by Microsoft. The software giant revealed its
next-generation console to the world's tech and gaming media
from its headquarters in Redmond, Washington.
Xbox One was revealed by President of Interactive
Entertainment Business, Microsoft Corporation, Don Mattrick,
to a tent
packed with journalists at the MS campus and fans and media
watching via media streams around the world.
"This system is built to amaze on day one," said Mattrick. The
new rival to Sony's PlayStation 4 does not require a constant
internet connection, as had been widely rumoured.
While much of the next-gen machine, set for a winter
release, is based around cloud connectivity, gamers
will be able to use it offline, too. However, developers

4. can use external servers to boost the console's on-
board specs, meaning that some games will
inevitably require a connection. The new Xbox packs
in an AMD processor eight times faster than the Xbox
360, 8GB RAM, a 500GB hard drive, a Blu-ray player
that supports 4K output, gigabit Ethernet and a new
proprietary wireless protocol to reduce latency. The
console weighs in at around 7lbs, the same as the
original Xbox 360, but is 10% larger in size. A new 1080p, 60
frames per second HD Kinect comes packaged with every
console. The peripheral now has 60% better field of vision,
Active IR tech to eliminate light interference, can track six
skeletons at once compared to the Xbox 360's two and has
vastly superior voice recognition. The tweaked controller adds
rumble to the triggers and a micro USB port for charging, shifts
the battery replacement for better weight balance, and
replaces the 'Back' and 'Start' buttons with 'Apps' and
'Play/Pause'.
Microsoft also outlined its ambitious plans to redefine the TV
space, displaying many features that people have expected of
an Apple TV, such as voice-activated EPGs, Zeebox-style social

5. features and original programming.
"When Apple shipped the iPhone, people realised what you
could really do with a smartphone," Yusuf Mehdi, Microsoft
IEB's
senior vice president of marketing and strategy, said to T3. "We
think the same thing is going to happen this year with
television."
"While this generation of consoles has sold around 300 million
units, and many experts believe the next one will be upwards
of 400 million, we think if we can go broader than being just a
console, we could go upwards of a billion units over the next
decade."
An HDMI port on the new machine also lets you plug in your
current set-top and control everything from your Xbox, with
bespoke content deals being worked on.
Microsoft also followed PlayStation's lead and attempted to woo
game developers, not just with the complimentary server
space to outsource computing power, but with a partitioned
operating system that keeps gaming and other services separate
– for quicker multi-tasking for you, and a better working
environment for them, apparently.
http://www.t3.com/author/T3-Online

6. 3
"Developers want predictability and need to know exactly what
they're working with," Boyd Multerer, Xbox's director of
development, told T3. "So to provide both, we're running three
different operating systems at once. Developers don't have
to worry about apps and TV taking their resources and can
optimise graphics, textures and audio to make the very best
game." Yusuf Mehdi, Corporate Vice President of Marketing,
Strategy and Business at Microsoft showed off the console's
new capabilities, which were centred around TV media.
Xbox One can turn on a user's TV, help them surf live channels,
switch between stored media and live TV and games with
voice commands. Users can also use Snap Mode to set up split
screen interface. Xbox One also comes pre-loaded with
Skype's communication tool and can support group chat.
"This is the beginning of truly intelligent TV," said Mehdi.
Marc Whitten General Manager of Xbox Live at Microsoft
Games Studios unveiled the next generation of Kinect, which
comes bundled with the console.
"Kinect is completely redesigned to respond to you, your voice
and your gestures," said Whitten.
Whitten also showed off the new Xbox Live experience, which

7. will be powered by more than 300,000 servers. User's content
is available and stored in the cloud and is available at any time.
Users will have a dedicated gaming DVR to capture game
footage and save it to the cloud.
EA Sports Head Andrew Wilson then took the stage and
announced a very special partnership between EA and
Microsoft.
Wilson also unveiled EA's brand new Ignite Engine, which he
said will power EA Sports's biggest franchises including FIFA,
Madden, NBA and a brand new UFC game. Xbox One will also
boast exlcusive content for FIFA's Ultimate Team Mode.
Corporate Vice President - Microsoft Game Studios, Phil
Spencer, was on hand to unveil Forza 5: Motorsport from Turn
10
and Quantam Break, a multi-layered thriller from Max Payne
and Alan Wake developer Remedy Entertainment.
"Microsoft plans to make release 15 exclusive new games in the
first year of Xbox One," said Spencer. "Eight of which will
be brand new IPs."
Xbox One will also be able to offer a TV-viewing experience
tailored to the needs of each individual user.
343 Industries' Bonnie Ross took the stage with Entertainment
and Digital Media President of Microsof Nancy Tellem to
announce a TV series based on the Halo gaming series, which

8. has director Steven Spielberg attached.
Don Mattrick said that Xbox One would be released around the
world later this year. He also said that many of the console's
blockbuster titles would be revealed at the E3 video games expo
in Los Angeles next month.
Activision's Eric Hirshberg closed out the presentation by
unveiling the new trailer for Call Of Duty: Ghosts, the DLC for
which, will launch first on Xbox One.
The new Xbox was revealed at an event on May 21 streamed
live from Microsoft's Redmond campus in Washington state.
4
Xbox One will only work in 21
countries at launch
Thursday 13 Jun 2013 (Source: www.metro.co.uk)
Xbox One – not a global device
Microsoft has revealed that the Xbox
One will not work in countries such
as Portugal and Poland even if you
take a UK console there to use.

9. Just when you thought Microsoft couldn’t
go a day without some new anti-consumer
disaster it’s been revealed that the Xbox
One is so reliant on its online connection
that it won’t even turn on in some
countries, no matter where you buy it from.
The official Pre-Order Product
Information for the Xbox One reveals that
the new console requires an ‘account on Xbox Live in an Xbox
One-supported Xbox Live country (not all Xbox Live
countries).’
The problem is there are only 21 supported countries at launch
(depending on who you ask there are around 206
countries in the world) and that doesn’t include Portugal,
Poland and most of Eastern Europe, or Japan and the rest
of Asia.
The full list of supported countries is Australia, Austria,
Belgium, Brazil, Canada, Denmark, Finland, France, Germany,
Ireland, Italy, Mexico, Netherlands, New Zealand, Norway,
Russia, Spain, Sweden, Switzerland, United Kingdom, and
United States.
The Xbox One isn’t being released in Asia until sometime in
2014, and as the official Xbox support Twitter indicates
there’s no point anyone importing one:
And when one user asked what would happen if someone
imported a console (or simply brought it along on holiday)
from the UK to Poland this was the response:
This probably has little ramification for most British gamers,
but it’s obviously a slap in the face for everyone else. It

10. also has significant implications for troops based abroad, who
often use video games to relax.
Sony has already confirmed that the PlayStation 4 will, like the
PlayStation 3 before it, be region free.
javascript:void(0);
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5
Microsoft reverses Xbox One online
check and used games policies
following backlash
A major U-turn ahead of the console wars
By Tom Warren on June 19, 2013 (Source:
http://www.theverge.com)
Microsoft is making a major U-turn today by reversing some of
its controversial Xbox One policies. In a statement
on the company's Xbox blog, Microsoft says it's making policy
changes "as a result of feedback from the Xbox
community." Microsoft is
reversing a 24-hour online
check, noting that it will not be

11. required to play offline Xbox
One games. "After a one-time
system set-up with a new Xbox
One, you can play any disc-
based game without ever
connecting online again," says a
Microsoft statement.
Microsoft is also reversing its
used game policy, noting there
will be no limitations to using
and sharing games. "It will work just as it does today on Xbox
360." Microsoft previously revealed it would support
installing games to HDD from disc, without a requirement for
the disc, but the changes mean that the disc will now
be required to be in the tray for the game to work. "Downloaded
titles cannot be shared or resold," says Microsoft,
which means a 10-person family sharing feature has been killed
off. Regional restrictions are also being removed,
allowing consumers to buy a disc from a retailer and play it on
any Xbox One console.
The U-turn is a significant change in policy for Microsoft, and

12. it follows initial confusion over its policies and the
restrictions gaining mainstream attention this week. Microsoft
is clearly reacting to Sony's own E3 announcements,
hoping to repair some of the damage over the confusing and
controversial aspects to its next-generation console.
6
X box One Will Not Require Internet, Restrict Used
Games
No more game lending restrictions, daily check-ins or region
locks.
by Andrew Goldfarb JUNE 19, 2013 (SOURCE
WWW.IGN.COM)
Microsoft has changed its policies regarding Xbox One’s
internet requirements, used game
restrictions and more.
Contrary to the details announced earlier this month, Microsoft
has now confirmed news originally
reported on Giant Bomb that Xbox One will not require an

13. internet connection to play offline games
or need to check in every 24 hours; instead, internet will only
be required when initially setting up
the console.
"After a one-time system set-up with a new Xbox One, you can
play any disc based game without ever
connecting online again," Microsoft wrote. "There is no 24 hour
connection requirement and you can
take your Xbox One anywhere you want and play your games,
just like on Xbox 360." Like on Xbox
360, "playing disc based games will require that the disc be in
the tray."
"I would like to take the opportunity today
to thank you for your assistance in helping us
to reshape the future of Xbox One."
Xbox One will also no longer restrict used games, and
will instead allow discs to be exchanged in the same
way they are on Xbox 360. There will be no additional
restrictions for trade-ins or lending games to
friends. The system is also no longer be region locked and all
downloaded games will function the
same way whether your console is connected or not.

14. "Since unveiling our plans for Xbox One, my team and I have
heard directly from many of you, read
your comments and listened to your feedback," Microsoft's Don
Mattrick wrote. "I would like to take
the opportunity today to thank you for your assistance in
helping us to reshape the future of Xbox
One. You told us how much you loved the flexibility you have
today with games delivered on disc. The
ability to lend, share, and resell these games at your discretion
is of incredible importance to you.
Also important to you is the freedom to play offline, for any
length of time, anywhere in the world."
In addition to being available in retail stores, Xbox One games
will still be available for download on
day one and will be playable on any Xbox One console.
"These changes will impact some of the scenarios we previously
announced for Xbox One," Mattrick
noted. "The sharing of games will work as it does today, you
will simply share the disc. Downloaded
titles cannot be shared or resold."
http://www.amazon.com/gp/product/B00CMQTVK0/ref=as_li_s
s_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B
00CMQTVK0&linkCode=as2&tag=editorial08-20
http://www.ign.com/articles/2013/06/06/microsoft-details-xbox-

15. one-used-games-always-online
http://www.ign.com/companies/microsoft
http://news.xbox.com/2013/06/update
http://www.giantbomb.com/articles/microsoft-to-pull-complete-
reversal-on-xbox-one-dr/1100-4673/
7
"We appreciate your passion, support and willingness to
challenge the assumptions of digital licensing
and connectivity," Mattrick concluded. "While we believe that
the majority of people will play games
online and access the cloud for both games and entertainment,
we will give consumers the choice of
both physical and digital content. We have listened and we have
heard loud and clear from your
feedback that you want the best of both worlds."
Microsoft's decision follows mass confusion following the
announcement of Xbox One in May. At E3
last week, Sony announced similar policies for PlayStation 4,
which will not require an internet
connection or periodic authentication and does not restrict used
games.
April 2013 figures

16. http://www.ign.com/articles/2013/05/21/xbox-720-is-called-
xbox-one
http://www.ign.com/articles/2013/06/11/e3-2013-playstation-4-
supports-used-games-dont-require-online-connection
8
Microsoft Downscales Xbox One 2013 Launch to 13
Markets
Much of Europe will now be waiting until 2014 for the Xbox
One.
by Chris Pereira (Source: http://uk.ign.com)
AUGUST 14, 2013
Microsoft will launch the Xbox One in only 13 markets around
the world later this year, and not 21 as it
had announced at this year's E3.
Those 13 still include major markets like the United States and
United Kingdom, as well as Australia, Austria,
Brazil, Canada, France, Germany, Ireland, Italy, Mexico, Spain,
and New Zealand. These countries will see the
Xbox One released in November.
Other countries that had expected to see the One this year will
instead be getting it "as soon as possible in

17. 2014," including Belgium, Denmark, Finland, Netherlands,
Norway, Russia, Sweden, and Switzerland. It was
previously confirmed that Japan wouldn't see the console until
next year.
The original plan to launch in 21 markets was described as "an
aggressive goal" in amessage posted online by
the Xbox Leadership Team today. "While we wish we could
launch Xbox One simultaneously in these
markets, there are many factors that determine the timing of
specific market launches," the statement
explains. "This includes work to localize the Xbox One dash,
incorporate additional voice and languages, and
build partnerships to bring apps and meaningful local content to
each country.
"We understand this will be disappointing news for our fans in
the impacted countries, and we are doing
everything we can to bring Xbox One to you as soon as possible
next year."
In order to make up for the delay, those who have already pre-
ordered the Day One edition of the system in
affected countries will receive a free pack-in game with their
console, though just what game this will be was
not identified.

18. http://uk.ign.com/
http://www.ign.com/articles/2013/06/10/e3-2013-xbox-
launches-november-2013-for-499
http://www.ign.com/articles/2013/07/03/microsoft-confirms-
xbox-one-launching-in-japan-next-year
http://news.xbox.com/2013/08/xbox-one-confirmed-markets
http://www.ign.com/articles/2013/06/10/e3-2013-xbox-one-
premium-day-one-edition-revealed
9
Xbox One Price and Bundles
SEPTEMBER 4 (Source: www.IGN.com)
The Xbox One will be released in November 2013 for $499.99
in the US, £429.99 in the UK and 499.99
Euros in Europe. In Australia, the Xbox One will cost $599.99
AU.
Though the price hasn't been announced for Japan, the USD
conversion to Yen is 49,336.91.
Xbox Live on Xbox One will continue to be a subscription
service, but its price is unknown.
Retailers Taking Pre-Orders
Some retailers are now taking pre-orders for the

19. Xbox One. This section provides a list of current
pre-order options.
US
crosoft Xbox One Standard
Edition - Pre-order Now for 499.96
- Pre-order
Now for $499.99 (may be temporarily
unavailable).
- Pre-order Now
for $499.99
- Pre-order
Now for $499.99 (may be
temporarily unavailable). Also available for
pre-order in-store with minimum $100 deposit.
Other Xbox One Bundles from GameStop:
UK
- £429.99 (£20
deposit)
- £429.99
- £429.99

20. GERMANY
is likely a placeholder price, should be updated
soon)
Day One Bundle
The Xbox One Day One Bundle is a limited edition
version of the Xbox One and the only bundle (or
"sku") currently announced. It contains the
following:
-ray drive and Wi-Fi included in console
14-day trial of Xbox Live Gold
For pre-ordering the Day One Bundle, you also get:
controller
The following bonus DLC also is available to Day
One pre-orders:
- Exclusive multiplayer map
and sword with bonus attributes.
- Access to four cars tuned
to the top of their class.

21. - Exclusive sporting
equipment that separates your Champion from
the rest of the world.
- Exclusive Frank West and Chuck
Greene Tribute Packs with bonus attributes.
European Pre-Orders
Anybody who pre-orders the Xbox One in Europe
will receive a free copy of FIFA Soccer 14.[4]
http://www.amazon.com/gp/product/B00CMQTVMI/ref=as_li_s
s_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B
00CMQTVMI&linkCode=as2&tag=editorial08-20
http://www.amazon.com/gp/product/B00CMQTVMI/ref=as_li_s
s_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B
00CMQTVMI&linkCode=as2&tag=editorial08-20
http://linksynergy.walmart.com/fs-
bin/click?id=dZCX6Je2w8Q&subid=&offerid=223073.1&type=
10&tmpid=1082&u1=IGNe3XBOXOne&RD_PARM1=http%3A
%2F%2Fwww.walmart.com%2Fip%2FXbox-One-Console-Day-
One-Edition%2F24274271
http://www.bestbuy.com/site/Microsoft---Xbox-One%3A-Day-1-
Edition/9008207.p?id=1219013502536&skuId=9008207
http://click.linksynergy.com/fs-
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edition%2F109961
http://click.linksynergy.com/fs-

22. bin/click?id=4ArfrXDXCmE&subid=&offerid=271758.1&type=
10&tmpid=7050&u1=editorial&RD_PARM1=http%3A%2F%2F
www.gamestop.com%2Fxbox-one%2Fconsoles%2Fxbox-one-
ryse-bundle%2F110019
http://click.linksynergy.com/fs-
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10&tmpid=7050&u1=editorial&RD_PARM1=http%3A%2F%2F
www.gamestop.com%2Fxbox-one%2Fconsoles%2Fxbox-one-ea-
sports-bundle%2F109997
http://click.linksynergy.com/fs-
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kinect-sports-rivals-bundle%2F110018
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www.gamestop.com%2Fxbox-one%2Fconsoles%2Fxbox-one-
forza-5-bundle%2F109996
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10&tmpid=7050&u1=editorial&RD_PARM1=http%3A%2F%2F
www.gamestop.com%2Fxbox-one%2Fconsoles%2Fxbox-one-
madden-nfl-25-bundle%2F110025
http://click.linksynergy.com/fs-
bin/click?id=4ArfrXDXCmE&subid=&offerid=271758.1&type=
10&tmpid=7050&u1=editorial&RD_PARM1=http%3A%2F%2F
www.gamestop.com%2Fxbox-one%2Fconsoles%2Fxbox-one-
battlefield-4-bundle%2F110024
http://www.game.co.uk/en/xbox-one-console-deposit-
244788?pageSize=20&searchTerm=xbox%20one%20console

23. http://www.amazon.co.uk/gp/product/B00BE4OUBG/ref=as_li_t
f_tl?ie=UTF8&camp=1634&creative=6738&creativeASIN=B00
BE4OUBG&linkCode=as2&tag=xboxonepre-21
http://www.zavvi.com/xbox-one-console/xbox-one-console-
new-xbox/10807959.html
http://www.amazon.de/Microsoft-Xbox-One-
Konsole/dp/B00CUGKF2A/ref=sr_1_1?ie=UTF8&qid=1369953
191&sr=8-1&keywords=xbox+one
http://uk.ign.com/wikis/xbox-one/Day_One_Bundle
http://uk.ign.com/wikis/xbox-one/Xbox_One_Kinect
http://uk.ign.com/wikis/xbox-one/Xbox_One_Controller
http://uk.ign.com/wikis/xbox-one/Xbox_Live_on_Xbox_One
http://uk.ign.com/wikis/xbox-one/Day_One
http://uk.ign.com/wikis/xbox-one/Achievement
http://www.ign.com/articles/2013/08/20/gamescom-fifa-14-free-
with-every-xbox-one-pre-order-in-europe
10
New Xbox One Marketing Addresses Policy
Reversal
"Share, trade-in, resell, gift, & rent game discs to your heart's
content."
by Mitch Dyer OCTOBER 7, 2013 (SOURCE:
WWW.IGN.COM)
Some of Microsoft's upcoming marketing for Xbox One
addresses its policy reversal, likely in
an attempt to take on any confusion about its console head on.
A source provided IGN with
the new "Get the facts" image below, which explains that you

24. can "Share, trade-in, resell, &
gift game discs to your heart's content."
GameStop's new "Get the facts" web page further details what
Xbox One can and can't do,
reminding potential buyers that they can play games online or
offline, rent games, andplay
anywhere with their Gold account. Indeed, Microsoft wants the
mainstream to be aware
that Xbox One is different than it was when the next-gen
hardware was revealed earlier this
year.
Xbox One is currently sold out at GameStop. The console
launches on November 22.
http://www.ign.com/articles/2013/06/19/microsoft-reversing-
xbox-one-internet-used-game-policies
http://www.gamestop.com/xbox-one#getthefacts
http://www.ign.com/articles/2013/08/13/xbox-one-then-and-now
http://www.ign.com/articles/2013/08/09/this-is-how-xbox-ones-
game-and-gold-sharing-works

25. http://www.ign.com/articles/2013/08/09/this-is-how-xbox-ones-
game-and-gold-sharing-works
http://www.ign.com/wikis/xbox-one/Xbox_One_Release_Date
http://assets2.ignimgs.com/2013/10/07/xbox-marketing-ignjpg-
e952c4.jpg
11
UPDATE: "Will not target ads to you based on any data
Kinect collects unless you choose to allow us to do so."
By Wesley Yin-Poole Published Tuesday, 8 October 2013
(Source: Eurogamer)
UPDATE 2: A Microsoft spokesperson issued Eurogamer the
following statement, telling gamers: "Will
not target ads to you based on any data Kinect collects unless
you choose to allow us to do so."
in relation to Kinect. We do not have
plans to target ads or content to you based on any data Kinect
collects. We have a long-standing
commitment to your privacy and will not target ads to you based
on any data Kinect collects unless
you choose to allow us to do so.
ermore, we will give you a clear explanation of what is
collected and how it will be used.
Importantly, we do not collect your personal information to
share or sell to third parties, and you are
fully in control over what personal data is shared.

26. have strict policies to protect your privacy and these
policies will continue to be upheld with our
next generation product.
UPDATE 1: Microsoft has questioned the accuracy of the
Advertising Age report that sparked concern
about how Xbox One would handle user data.
Over the weekend AdAge published a report based on a speech
from Yusuf Mehdi, corporate VP
marketing and strategy for Microsoft, delivered at the
Association of National Advertisers Masters of
Marketing Conference in Phoenix, Arizona, titled, "Xbox One's
Data Treasure Trove Could Reshape
Marketing." The report suggested Microsoft could use the likes
of Kinect and Xbox One's online
functionality to help marketers create more effective advertising
placed within the console's
dashboard.
Overnight Microsoft denied the report. Spokesperson Larry
"Major Nelson" Hryb tweeted: "We are
seeking a correction to the AdAge story that quotes Yusuf,"
before pointing to an AllThingsD report
that sought to clarify the matter.
AdAge quoted Mehdi as discussing how Xbox One would bridge
offline and online worlds as follows:
“It's early days, but we're starting to put that together in more
of a unifying way, and hopefully at
some point we can start to offer that to advertisers broadly.”
Microsoft said this quote was in reference to the way content
can be carried over from Xbox One to
other platforms, such as SmartGlass. “For example, just as Xbox

27. SmartGlass allows companion mobile
experiences that are synchronous to what is being watched on
TV, advertisers could create new
experiences unifying their content across devices,” Microsoft
told AllThingsD. “The quote from Yusuf
in AdAge is not in relation to Kinect.”
Major Nelson concluded: "We do not collect information to
share or sell. You are fully in control of
your personal data. Your privacy is important to us."
ORIGINAL STORY: Microsoft has addressed concern over
advertising on Xbox One.
Prospective Xbox One owners have worried about Microsoft's
plan for user data since the console was
announced back in May, but over the weekend a new article
heightened the situation.
On 5th October trade publication Advertising Age published a
report based on a speech from Yusuf
Mehdi, corporate VP marketing and strategy for Microsoft,
delivered at the Association of National
Advertisers Masters of Marketing Conference in Phoenix,
Arizona.
12
AdAge's report, titled, "Xbox One's Data Treasure Trove Could
Reshape Marketing," suggests
Microsoft could use the likes of Kinect and Xbox One's online
functionality to help marketers create
more effective advertising placed within the console's

28. dashboard.
The article discusses the potential for Xbox One to make user
data available for market research,
something it says Mehdi "only hinted at" in his talk.
"We are trying to bridge some of the world between online and
offline," Mehdi said.
"That's a little bit of a holy grail in terms of how you
understand the consumer in that 360 degrees of
their life. We have a pretty unique position at Microsoft because
of what we do with digital, as well as
more and more with television because of Xbox. It's early days,
but we're starting to put that together
in more of a unifying way, and hopefully at some point we can
start to offer that to advertisers
broadly."
One unnamed marketer told AdAge Microsoft could use Xbox
One and Kinect to deliver
"unprecedented information about how people engage with TV
advertising".
When Xbox One was announced Microsoft planned for it to
authenticate online once every 24 hours
and require Kinect be plugged in to work. Following a backlash
it ditched this plan.
But that hasn't stopped many from expressing concern at how
Xbox One will handle their data,
particularly in the context of the ongoing PRISM scandal and
Microsoft's involvement with it.
In an interview with Eurogamer conducted at Microsoft's
Redmond Xbox One reveal event in May,

29. Europe chief Phil Harrison denied the company planned to use
Kinect to snoop on gamers.
"Microsoft has very, very good policies around privacy," he
said. "We're a leader in the world of
privacy, I think you'll find. We take it very seriously. We aren't
using Kinect to snoop on anybody at all.
We listen for the word 'Xbox on' and then switch on the
machine, but we don't transmit personal data
in any way, shape or form that could be personally identifiable
to you, unless you explicitly opt into
that."
During his talk, Mehdi discussed how the new and improved
Kinect can "distinguish up to six voices in
a room, respond to voice commands, read skeletal movement,
muscle force, whether people are
looking at or away from the TV and even their heart rates",
according to AdAge.
Eurogamer contacted Microsoft this morning about the AdAge
report. The company declined to offer
a spokesperson for an interview, but did point us to a post made
this month by director of product
planning Albert Penello on NeoGAF in response to a user
question about Natural User Interface
Advertisements (NuAds).
Penello's statement is reproduced below:
Well I think there's two things you're asking. NuAds by
definition is simply interactive advertising done
on the platform. Using the functions of the console and Kinect
to interact vs. just watching a spot.
There's nothing particularly interesting happening here unless
you're in the advertising business, and

30. we've done a few on Xbox 360 today.
in the year where someone was talking
about how some of the new Xbox One Kinect features *could*
be used in advertising - since we can
see expressions, engagement, etc. and how that might be used to
target advertising. This is the point
that seems to draw some controversy.
- nobody is working on that. We have a lot more
interesting and pressing things to dedicate time
towards. It was an interview done speculatively, and I'm not
aware of any active work in this space.
- if something like that ever happened, you can be
sure it wouldn't happen without the user
having control over it. Period.
13
automatically. There could be some cool features
we could enable if we stored that data in the cloud, like being
able to be auto-recognised at a friend's.
I get asked for that feature a lot. But, for privacy reasons, your
facial data doesn't leave the console.
freezes the video when Skype is not in focus
(meaning, it's not the primary app). If you go back to the home

31. screen, or launch another app, we
actually stop the video stream. We do this so the user can't even
ACCIDENTALLY have the video stream
going on in the background.
- we take a lot of heat around stuff we've done
and I can roll with it. Some of it is deserved.
But preventing Kinect from being used inappropriately is
something the team takes very seriously."
April 2013 figures
14
Xbox 360 vs. Wii vs. PS3: Who won the console wars?
August 2, 2013 at 8:04 am by Todd Bishop (Source
http://www.geekwire.com)
Sony’s earnings report
yesterday provided some of the
final pieces of data to answer a
question that goes back to 2005:

32. Will the Xbox 360, PlayStation 3 or
Nintendo Wii prevail in the video-
game console wars?
Eight years later, it turns out the
answer isn’t as clear as we might
have hoped.
Nintendo raced out to an early lead
with soaring Wii sales from 2007-9,
and redefined the way we interact
with video games, before stumbling in recent years and so far
falling flat with the Wii U. But cumulative Wii
sales, dating back to 2006, just passed the 100 million unit
milestone — well ahead of the Xbox 360 and PS3
in total units sold.
Sony struggled out of the gate thanks largely to the higher price
of the PS3, but has posted very solid results
in recent years and quarters, winning what was essentially the
final act of the 2012 holiday shopping
season. The data is muddied by Sony’s decision to combine
PlayStation 3 and PlayStation 2 data for purposes
of financial reporting in recent quarters, but the PS3 appears to

33. have sold around 80 million units total, based
on the data in our GeekWire spreadsheet.
Microsoft’s Xbox 360 has dominated the U.S.
market for more than two years. On a
worldwide basis, the Redmond company has
sold 78.2 million Xbox 360s total, and did a nice
job extending the life of the console with the
release of the Kinect sensor.
At the same time, Microsoft had a head start
over Sony and Nintendo, launching its console
in 2005, and the company’s numbers also
reflect replacements for people whose
consoles were brought down by the infamous
red ring of death.
Here’s our chart showing how the competition
played out.
So who won? By different metrics, all three can

34. claim some form of victory.
Now the industry is preparing for the launch of
the PS4 and the Xbox One later this year. With
the expansion of those consoles into entertainment machines,
the competitors now include Apple, Google
and many others. The real question this time isn’t who will win
the game console wars, but who will win the
living room.
Based on these results above, the answer will probably be
debatable.
http://www.geekwire.com/
http://www.sony.net/SonyInfo/IR/financial/fr/viewer/13q1/
http://www.sony.net/SonyInfo/IR/financial/fr/viewer/13q1/
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cdn.com/wp-content/uploads/2011/12/wiips3xbox.jpg