The Xbox Chain Supply

Powerful Essays
CASE: GS-49 DATE 04/14/06

EVOLUTION OF THE XBOX SUPPLY CHAIN
With the first generation of Xbox, our ambition was to change the way people think about video games. Starting today with Xbox 360, our ambition is to transform the way people play games and have fun. 1 —Robbie Bach, President of the Microsoft Entertainment and Devices Division

In November 2005, Microsoft prepared to launch its next-generation video game console, the Xbox 360. A global release was scheduled, beginning on November 22 in North America, followed shortly by Europe (December 2), and Japan (December 10). It had been four years since Microsoft had introduced the original Xbox. The first Xbox had hit the U.S. market a year behind Sony’s PlayStation2, but this time Microsoft expected to beat Sony’s next-generation system to market by many months. The Xbox 360 would provide a substantial increase in performance for gamers. Its processors were so powerful that graphics would appear virtually lifelike, and would run on high definition televisions. When used with Microsoft’s Xbox Live Web service, the Xbox 360 would enable gamers to play multi-player games online. The system could also be used as the base of a family’s home entertainment system, taking advantage of its high definition DVD player. Demand for the new system was expected to be heavy. The challenge would be for production to meet the demand. THE VIDEOGAME MARKET In 2005, the global market for video games was approximately $27 billion, consisting of $6.7 billion in console sales, and $20 billion of software (games) (Exhibit 1). Sony dominated the market, with cumulative sales through December 2004 of 102.5 million PlayStation 1 (PS1) consoles and 87.5 million PlayStation 2 (PS2) consoles. Microsoft had sold 19.9 million Xbox consoles, slightly more than Nintendo had sold of its GameCube (Exhibit 2). Of the current

Jay Greene, “Robbie Bach is Ready to Rumble: The Honcho of Microsoft’s Xbox 360 Heads for a Bare-Knuckles Brawl with

You May Also Find These Documents Helpful

  • Powerful Essays

    EVOLUTION OF THE XBOX SUPPLY CHAIN April 2, 2007 Contents Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360 Section 2: Benefits and Risks of global launch of Xbox 360 Section 3: Benefits and Limitations of using EMS firms concentrated in China and an Analysis of the co-ordination efforts required Section 4: References 21 Section 1: A Synopsis and interpretation of the Supply chain changes made between Xbox and Xbox 360 by Anand Kangala…

    • 4751 Words
    • 20 Pages
    Powerful Essays
  • Better Essays

    Evolution of the Xbox Supply Chain In July 1999, Microsoft announced its expansion to invade the gaming hardware market aiming to provide a console that would enable the gamers to push their skills and competency to new limits. This new console, Xbox, is much beyond what was then offered by fearsome competitors like Sony and Nintendo. Two years later, Microsoft had to work its supply chain to line up and deliver large volumes of high quality products to the consumer market in time for the 2001…

    • 588 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Global Supply Chain Design Evolution of the Xbox Supply Chain Management Summary Contents Evolution of the Xbox Supply Chain 1 - Introduction It was in 1999 when the initial proposal to Bill Gates was made to create a game console. Long before the legitimization of this project, Microsoft was not only encouraged by the gamer’s scene to enter this market, but the main driver was to secure shares in the console market…

    • 3025 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Case: Evolution of the Xbox supply chain a. What supply chain changes did Microsoft make between the Xbox and the Xbox 360? What was the motivation for these changes? First Microsoft restructured its supply chain after learning from its experiences with the Xbox. Microsoft Xbox had already established a huge presence in the videogame market, but by the time Xbox 360 was rolled out, it had lost a substantial amount of money. "One analyst estimated that from the time of Xbox launch to the time the…

    • 753 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Global Supply Chain Design Case Study Evolution of the Xbox Supply Chain 2012 Evolution of the Xbox Supply Chain 1.) What supply chain changes did Microsoft make between the Xbox and the Xbox 360? What was the motivation for these changes? When Microsoft first entered the market with the release of the Xbox in 2001 it was a newcomer in the console business. The company had neither an established brand presence in this area, nor did it have a developed base of games and gamers in the…

    • 3615 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    suppliers are developed and maintained c. the process is about developing and managing PSAs for suppliers d. it is the mirror image of customer service management The supplier relationship management teams provide input to each of the other supply chain management process teams that are affected by the customizations that have been made in the __________ . Select one: a. PSA b. production plan c. S&OP document d. marketing plan Supplier profitability reports can be constructed by…

    • 424 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Supply Chain

    • 1746 Words
    • 7 Pages

    BSc Logistics and Supply Chain Management SCHOOL OF BUSINESS BSC LOGISTICS AND SUPPLY CHAIN MANAGEMENT Programme Overview The BSc Logistics and Supply Chain Management programme offered by the School of Business at SIM University (UniSIM) aims to develop human capital and talent to meet the needs of the industry. This is the first undergraduate programme dedicated to the study of logistics and supply chain management to be offered by a Singapore university. Partnering with the Singapore…

    • 1746 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Supply Chain

    • 745 Words
    • 3 Pages

    Faster response to changing business needs through end-to-end visibility into supply chain operations This implementation won the award for innovation by the US Supply Chain Council (SCC) SCC, a renowned global nonprofit organization, has established the supply chain world’s most widely accepted framework for evaluating and comparing supply chain activities and their performance - the Supply Chain Operations Reference (SCOR®) model. SITUATION Lack of consistent metrics, & reporting rules…

    • 745 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Supply Chain

    • 2149 Words
    • 9 Pages

    Supply Chain Assignment Maria Blum Supply Chain Management refers to the stages that involves the directly and indirectly processes that delivers a final product. It begins with a customer order; it is followed by procedures depending on the organisation and finishing with a final product. SCM consists of the materials, information and funds that will flow within the process in order to provide a lower cost and high degree final product to the customer/consumer. Supply Chain Management…

    • 2149 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Supply Chain

    • 9186 Words
    • 37 Pages

    A – Supply Chain Strategy The supply chain strategy chosen for the power tool company is a long term partnering relationship with few suppliers. The long term vision of the company is to make quality products and constantly stay ahead of the competition with innovation. The best way to accomplish this strategic long term goal is to partner with key suppliers that operate using a strategy of long term thinking based on trust and transparency. Ray Kroc was one of the pioneers on forming partnerships…

    • 9186 Words
    • 37 Pages
    Good Essays