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.
“I have heard directly from many of you, read your commentsand listened to your feedback” (Mattrick, 2013)
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.jpgFerreiro, 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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