Sunday 18 August 2013

Microsoft Xbox One Value Levers

Xbox One


For this week's Blog I’ll be looking at social technological value levers for Microsoft, in particular the minor debacle that is the Microsoft Xbox One. Microsoft like any successful technological company uses social technology to add value to many of its organizational functions, Product development, Operations and distribution, marketing and sales pop up as no brainers. What I want to focus on though is Customer service and how social technology helps to smooth over customer angst.

A bit of background though. The Xbox one is the successor to the hugely popular Xbox 360. It has been closer to a decade since the Xbox 360 was released so the new model has been highly anticipated. On announcement for the Xbox One it was stated that it required a constant internet connection to play disc-based games, so too bad if you don’t have broadband, and there were restrictions on lending and selling games second hand they could only resold through authorized dealers, can only be lent once, there was a “list” you had to be on and could only play it for 30 days before functionality seized.


The gamer angst was intense to say the least; gaming websites were inundated with negative comments towards the Xbox One.

Even Sony got in on the act. (Marketing and sales function, levers 5 and possibly 6. Use social technologies for marketing communication and interaction, Generate and foster leads. But most importantly lever 11 making light hearted fun of a rival company)



(O.K. there is no lever 11 but there should be!)

Fast forward two months of constant internet (social media) negativity, Don Mattrick former president of Microsoft's interactive entertainment unit, posted a blog on the Microsoft Xbox website, recanting the draconian measures to resell and lend games and also dropping the constant internet connection requirement. Only need it once on setting up the system, still one too many if you ask me.


The gamer angst was subsidised by providing customer care (Lever 8) from monitoring the fallout of the Xbox One announcement via social technology (The marketing and sales function, levers 4 and 5, Derive customer insights, use social technologies for marketing communication/interaction). 

While using the blog may have not totally defused the situation at least I feel there was a genuine attempt at connecting with the potential customer base. I think this was a smart move by Mattrick as it also showed that a big company like Microsoft will listen to it’s customers to improve its products and will change if there is a large enough outcry. 

Why their research before hand failed to forecast this outcry (Lever 4 – Derive customer insights) is the million dollar question. Especially as level 4 is tied with the product development function.


Ultimately I believe that people power will be one of the enduring legacies of social technology, from toppling regimes.


To Xbox gamers being able to buy second hand games.


References

EmotionFaces. (2012). Blond boy Crying [Image]. Retrieved August 17, 2013, from http://farm8.staticflickr.com/7180/6926482211_d9dc05e40c_b_d.jpg
Ferreiro, J. D. (2013). Don Mattrick [Image]. Retrieved August 17, 2013, from http://farm6.staticflickr.com/5532/9183874929_8029ffa3e0_b_d.jpg
GAME Online. (2011). Gears of War 3 - Midnight Launch [Image]. Retrieved August 18, 2013, from http://farm7.staticflickr.com/6035/6353843921_e6916dfa71_b_d.jpg
Globovision. (2011). Las excentricidades de Aisha Gadafi, hija del lider libio [Image] Retrived August 18, 2013, from http://farm7.staticflickr.com/6078/6080358327_f229b6f1a7_m_d.jpg
Mattrick, D. (2013, June 19). Your Feedback Matters - Update on Xbox One [Web log post]. Retrived from http://news.xbox.com/2013/06/update
McKinsey Global Institute. (2012). The social economy: Unlocking value and productivity through social technologies [Research Report]. Retrieved August 10, 2013, from http://www.mckinsey.com/~/media/McKinsey/dotcom/Insights%20and%20pubs/MGI/Research/Technology%20and%20Innovation/The%20social%20economy/MGI_The_social_economy_Full_report.ashx
Playstation. (2013, Jun 10). Official Playstation Used Game Instructional Video [Video file]. Retrieved from http://youtu.be/kWSIFh8lCaA
The Chronicles of X. (2013). Microsoft XBOX One Retail Box [Image] Retrieved August 17, 2013, from http://farm8.staticflickr.com/7376/9073247822_e82accf228_b_d.jpg

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