User talk:Wittduncan

Speedy deletion of Microsoft group project
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Microsoft Case
We are centering our project on Microsoft’s Home Entertainment Devices and Content. This portion of the Microsoft in 2005 case focuses on the company’s strategy to create a fully integrated “digital lifestyle” for the consumer, incorporating Microsoft products and software in home entertainment, while staying cutting-edge to compete with others in the industry. Microsoft is dedicated to a uniform vision to be present in every aspect of technology in the home. Videogame consoles not only represent a great opportunity for increased profits, but also a step on the path toward their desired convergence of all things digital in the home. The appearance of newly capable competitors, consumer-related problems, and the never-ending endeavor to be creative and innovative have all challenged Microsoft and pushed its limits. There is much to learn from this portion of the case, and our team is eager to uncover more of the overall business strategy this company has followed and tweaked in order to keep its competitive edge.

Case Update
Microsoft competes strongly with Nintendo and Sony in the field of home entertainment. Microsoft released the Xbox 360 in 2005, one year before Nintendo and Sony released new versions of their game consoles (Wii and PlayStation 3, respectively). Consequently, there has been significant pressure on Microsoft to upgrade and enhance their systems before their competitors do (the life cycle for a video game console averages five to seven years).

Formerly one of Microsoft’s approximate counterparts, Nintendo has surpassed competitors and become an industry leader with its Wii console. The 2006 introduction of the Nintendo Wii marked the first time in over a decade that a company has been the leader in handheld and gaming consoles. (In the 1990s, Nintendo held this same title). Microsoft’s and Sony’s former dominance has been relinquished to a newer device that is unmistakably more appealing across all demographics and worldwide markets. The Wii has continued to sell more than double the units of Xbox consoles each week in global markets, with total sales at over 10.5 million making it the most successful console created to date, better than the Sony PlayStation 2 (Mutschler).

In their rebuttal to Nintendo’s main argument, the Wii, Microsoft has chosen to amplify the content of the Xbox overall package. In December 2007, Microsoft released XNA Game Studio Express 2.0 as part of its ambition to create a “YouTubing of videogames.” The free downloadable toolset enables Xbox users to create their own videogames that are eventually shared with the rest of the 10 million members of the Xbox Live community. Representatives at Microsoft explained that they are providing a platform for any and all users to share their creativity and fresh ideas (Kushner). This pivotal play has the potential to revolutionize the industry. User-created content will double the Xbox library, making it the largest and most diverse collection of offerings in the industry (“Xbox 360 Becomes First Video Game Console…”). The XNA Game Studio Express was strategically released prior to the Nintendo Wii and PlayStation 3 in order to draw in the more advanced segment of gamers. Since the initial debut, Microsoft ’s primary competitors have revealed comparable offerings, such as Nintendo’s WiiWare released in 2008 and Sony’s Net Yaroze. Contracts with universities to incorporate this particular software were subsequently formed as a response, hoping to build familiarity and most of all loyalty to the Xbox 360 (Fried).

Additional partnerships with Netflix, MTV, Disney, NBC Universal, Universal Studios Home Entertainment, SCI FI Channel, USA Network, Constantin, and MGM are increasing the number of available items in the Xbox Marketplace, as well as giving non-gamers a reason to use the Xbox (Shah). Moreover, the third edition of the ever-popular Halo videogame contributes to Microsoft’s competitive advantage as the company tries to remain sustainable in the gaming industry. After all, the Xbox 360 was intended to be a device that converges all home entertainment needs in to one unit, and these efforts will help curtail some of the expenses Microsoft has endured due to a lack of consumers jumping on board to the “all-in-one” concept (Sweeting).

On the consumer relations front, Microsoft has encountered several problems with shortcomings in the Xbox 360 that has reduced the lifespan of at least 2 million units to only 2 years, generating an uproar of complaints. It seems Microsoft made the unsound choice when deciding to ignore warning signs of potential design flaws and launch the Xbox before its rivals released their consoles, reflecting its background in writing software that is later improved and debugged with downloadable updates. After a tidal wave of detrimental backlash, Microsoft absorbed $1.15 billion in repairs and warranty expenses for faulty consoles. The damage that was done to their reputation has caused the company to rethink its strategy. Microsoft has traded in going for gold to instead aim at staying ahead of current bronze-medalist, Sony and its PlayStation 3. However, it is interesting to note that the PlayStation 3 has been outselling the Xbox in the U.S. during the third quarter of 2008 (Takahashi “Xbox 360 defects”).

Consumers are not the only ones straying away from Microsoft. Many programmers and IT techies are being drawn to Google, Yahoo, and other competitors for their enticing benefits. In an attempt to attract these valuable and knowledgeable employees to work for them, Microsoft has completed a $2 billion renovation on its main campus in Redmond, Washington. The company anticipates an increase in productivity as well as increased employee retention to help give it an edge over competitors like Google (Boyle).