Microsoft Still Pushing Consumers to 'Jump In' (XB360)

This year, as last year, it seems as though the majority of the media attention has focused on either the PS3 or the Wii for the holidays. For the former, the focus has been on the new $399 version of the PS3 and what sort of impact that will have on sales and for the latter it has been on the continued and unprecedented demand that the Wii has seen. It would not be wise, however, to ignore the third player in the race- Microsoft and their Xbox 360.

Unlike the Wii and PS3, the 360 has been on the market for two whole years now, and it seems, almost quietly, that Microsoft has managed to keep up steady sales for the console. They've done so with their ads targeting the mainstream, a stream of hot new titles and a series of new hardware bundles. Oh, and they've also got a little title called Halo 3 propping up the Entertainment Division's tent this year.

We caught up with Jeff Bell, Corporate Vice President of Global Marketing for the Xbox 360, and discussed why the third holiday is the charm for the Xbox 360.

Five million Halo 3 copies sold would put a smile on your face too

The 360 Experience
Microsoft was coming from a somewhat unique position this holiday period since this is the third holiday for their console, whereas the PS3 and Wii are only in their second. Still, it was not a holiday to remain complacent with a reinvigorated PS3 market and the Wii riding a wave of unprecedented success. However, Microsoft didn't just sit back; they launched a holiday campaign that included a hot line-up of games, special console pack-ins, and promotions running both on TV and in malls across the nation.

When asked about consumers' reaction to the Xbox 360 ad campaign, Bell responded, "The reaction has been very positive. In fact, we saw incredible sales of Xbox 360 for the week of November 18, including Black Friday of more than 310,000 Xbox 360 in the U.S. alone. This is really strong momentum for us given that we're already in our third year on the market. We've also seen a strong response to both Halo 3 sales with more than 5 million, and Mass Effect which has sold more than a million copies in less than three weeks."

"This holiday, we have placed interactive installations at malls across the country," he added. "The distinctive displays encourage people to interact with the Xbox 360 brand. They help to announce our Xbox 360 and Xbox 360 Elite value bundles and illustrate the Xbox 360 experience that the entire family can enjoy. These are in addition to the Xbox 360 kiosks set up at over 15,000 retail locations in the U.S. that showcase the entertainment experience available on Xbox 360, including new game demos, trailers, downloadable content and other features of Xbox 360."

Master Chief Believes in the 360
Of course, you could have the fanciest ad campaign in the world but if you don't have any new games to back it up, the efforts would be for naught. Fortunately for Microsoft, they have the strongest lineup of titles this holiday season that the Xbox 360 has ever had. These hot games include Rock Band, Guitar Hero III, Call of Duty 4, and Assassin's Creed with console exclusive titles like BioShock, Mass Effect and the biggest of them all: Halo 3.

"The Halo 3 momentum is definitely still alive - the game has sold more than five million copies to date in less than three months since its launch, and next week we're announcing the first release of new downloadable content for Halo 3 that will extend that experience even further," described Bell. "But this holiday has also been about offering gamers the best experiences on any video game console and more selection than ever before; reaching out to new players of all ages; providing content on Xbox Live Arcade that the entire family can enjoy; working with our third party partners to ensure gamers have the best experience on Xbox 360 than any other console. And we are confident we've delivered on the promise we made at E3: Xbox 360 has the best lineup in video games history."

"When we look back at 2007, we'll say this was the best holiday lineup in video game history, and this holiday was all about offering the best games lineup for Xbox 360 owners," he continued. "That means highlighting games from many different genres to appeal to players with a variety of interests, from Xbox exclusives to industry favorites, including games for families and children. So whether people are after a sports game like Madden NFL '08, a sci-fi RPG like Mass Effect, a music-based game like Guitar Hero III or Rock Band, or a trivia game like Scene It? Lights, Camera, Action, all the best games this holiday season for everyone in the family are on Xbox 360. It appears that consumers agree as Xbox 360 software is on track to continue outselling software of our competitors combined this holiday season."

Haven't you jumped in yet?
To complement the software offerings, Microsoft released various new incentives for consumers to purchase their hardware this holiday. Along with the new Xbox 360 Elite there was also the Xbox 360 Arcade, appealing to opposite ends of the consumer spectrum. This was combined with special value bundles with pack-in games that helped the system sell over 310,000 units during Thanksgiving week, giving competition to the Wii for the top spot.

"In addition to the large game selection, we renewed our entire line-up in 2007," ventured Bell. "We added the Xbox 360 Elite this year with a 120GB hard drive and HDMI. We launched the Xbox 360 Arcade (retails for $279, with a wireless controller, five popular Xbox Live Arcade games, and a 256 MB memory unit). This line-up represents the ultimate value and choice for consumers. We have heard from one of our top retailers that the launch of Xbox 360 Arcade pushed sales to holiday levels before Thanksgiving. It's performed above what we've expected and has been embraced by consumers. In addition, on our Xbox 360 and Elite skus, we introduced two value bundles this holiday. At no additional cost, both consoles offer Forza Mortorsport 2 and Marvel Ultimate Alliance in the box. This has certainly helped drive the great sales numbers we saw the week after Thanksgiving. The response from consumers definitely shows strong momentum behind the complete entertainment experience that Xbox 360 offers."

Since the beginning, Microsoft has been trying to reach the mass market consumer with the Xbox 360, and nowhere has this been more evident than in the brand's ad slogan: Jump In. It's not just about drawing in the hardcore, it's about everybody giving the system a try. While the Wii is seemingly doing a better job of appealing to the masses, Microsoft is still getting plenty of consumers to "jump in."

"This holiday we're encouraging everyone, families and friends, to jump in and experience Xbox 360. With the broadest selection and best games, plus the enormous variety of entertainment content on Xbox Live Marketplace, we really believe our platform offers fun and entertainment for everyone in the family. Downloading additional songs for Guitar Hero III or expansion packs for Halo 3, Xbox Live provides the complete experience for our consumer. We have the leading High Definition service in our Video Store. We have the best television and movie programming for the whole family available to download. We've put a lot of resources into creating a complete entertainment experience for the Xbox community and it's never been as robust as it is this holiday season. This is the renaissance of entertainment. Xbox 360 is the new definition of fun!" concluded Bell. [Yes, those were Bell's words. Contrary to rumor, he's actually not a marketing robot - Ed.]