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MS Spending Big on Casual in Europe

Edge Staff's picture

By Edge Staff

July 28, 2008

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“I’m not sure we work hard enough to develop locally customisable, culturally connected marketing in the way that we needed to”

Chris Lewis, vice president of Microsoft’s Interactive Entertainment Business in Europe, Middle East and Africa, has told Edge Magazine that the company is focusing on Europe when it comes to growing the Xbox 360’s market share, and that seducing the casual market will play a key role in its efforts.

European 360 sales have long trailed those in the US, despite the region’s larger population. With the PlayStation brand retaining strong cachet, Xbox 360 routinely sells the fewest consoles each week in France, Germany, Spain and Italy.

“[Europe is] a very textured region, as you know very well, and we enjoy fabulous success in some parts of the region and relative marginal success in others,” Lewis said in a recent interview. “And our plan quite clearly is to invest in the right marketing, the right content and to align the platform in a way that we are hugely successful everywhere.

“Where we’ve done well traditionally is where we were in with the first Xbox. The UK is an example of that. The gaming tastes in the UK are quite well aligned with the US – there’s a higher disposable income for a start – we very deliberately set out to appeal to the core space in the first instance and we did that very well. I think the challenges are some of the more Mediterranean markets. Let’s pick on France, Italy and Spain, for example. There’s a much more casual gaming orientation there – people like to dip in and out, they’re not perhaps so likely to buy multiple consoles and they are more price-sensitive markets.

“I would also put our marketing fairly central to it in as much as I’m not sure we work hard enough to develop locally customisable, culturally connected marketing in the way that we needed to. We are addressing all that and I think we’ve got a much deeper insight, much higher levels of empathy with that now than we had in the first few years and phases."

While promising to “continue to invest in and protect the core”, Lewis said it was necessary to “have games that are not intimidating and dark, that mums and dads can get involved in without the incumbent humiliation”. Games such as Lips, Scene It? and Primetime, which require heavy customisation spends.

“Clearly what you can’t do is go storming into different markets with a somewhat vanilla-based proposition, assuming that the different cultures will adopt it. Will it continue to be a big challenge to accommodate the different tastes around the region? Yes. Will we disproportionately invest to make sure that we will do that effectively in Europe? Yes, we will.”

Hass_H's picture

The best thing they could do to increase sales of 360s is to lower the price. If they do that and keep on releasing quality games for all types of gamers, they should have no problem increasing sales.

Rendszer's picture

Well, the main issue is not just that MS lacks the casual games: it is a combination of games and price of hardware. MS should be reaping the benefits of having the BEST lineup of software available (looking at the quality and quantiy and variety) coupled with having a hardware that is "affordable".

There is an image problem too. The Wii has this "gimmick" and "fresh" thing about it and the PS3 has the "supposedbly" most powerful hardware plus blu ray. The 360 is in the middle with this awesome Onlineservice that is the big differentiator. MS is banking a great deal on the superior online-service but here in Europe, it is not as "sweet" as it it in the US (yet).

But I think that if at least the Corepack goes down in price, coupled with this casual-focus and marketing blitz, then things can change. Because "casual" are people that are not spending so much money but still wants to have some fun, occasionally.

So MS should try the lower of price of the hardware too.

Alex_V's picture

All well and good, but the games have to be appealing enough to find a market - are Microsoft sure that a karaoke and quiz game will be enough to make waves in the marketplace? It sounds as if Microsoft have a viable strategy to go for casual gamers, without actually having any real content to offer. To really do this they need titles to compete with Nintendo's best titles, and I don't see quite how you just invent that sort of quality of software without significant time and money.

rydamgw's picture

microsoft microsoft dont u know u cant always solve problems by throwing money at them well i guess u can if u can put out a system w a 33% failure rate and get away with it stupid xbots