Microsoft’s Video Game Market Looking Towards the Future

Microsoft Corp. is one of the three big players in the video game market along with Sony and Nintendo. Their console, the Xbox 360, has been on the market for seven years but still continues to sell and was bolstered by the introduction of their new Kinect, a motion-sensor accessory. It had its’ best year of sales in 2011. Even with this success however, they are still looking to unveil the next version of their Xbox console in 2013 or early 2014.

Releasing a new console into the market is something that has to be timed perfectly. According to Michael Pachter, an analyst at Wedbush Securities Inc., “Theyre still selling a lot of Xbox 360, and they’re making money…I don’t think the world needs them to put a new console out just because we’re bored.” The last fiscal year showed a 45% sales gain to $8.91 billion and outsold both Nintendo Co.’s Wii and Sony Corp.’s Playstation 3. Nintendo is releasing its’ new console, the Wii U later this year but its’ once extremely popular console has been having dwindling sales for years now.

Microsoft is in a very strong position so they must be careful about which route they take. New consoles are inevitable but new consoles tend to lose money at first and it isn’t worth the hit if their current console is doing so well. Also, people may be turned off from buying a new console if their purchase of their current console was made in the past year or past couple years.

The full article can be found at: http://www.bloomberg.com/news/2012-03-15/microsoft-says-it-won-t-be-discussing-new-xbox-at-e3-conference.html

Sears: Saving Money by Closing Doors

Sears Holdings Corp plans on closing 62 of its’ retail stores in order to reduce expenses. Edward Lampert, Sears’ CEO, just had the company’s largest quarterly loss in at least nine years.  Its’ goal is to raise about $770 million to help recuperate from that loss. Shares fell 1.1 percent to $82.55 at the close in New York but shares have more than doubled this year after falling 56% last year.

The company also owns Kmart and has 45% less cash than last year with $747 million in the fourth-quarter. Kmarts have been struggling for years now and the amount of these types of stores have been falling with the success of major player Walmart and also wholesalers such as Costco and BJ’s. To survive, Sears not only has to raise money but find a way to reinvent itself to survive in the new market.

The full article can be found at: http://www.bloomberg.com/news/2012-03-16/sears-to-close-62-stores-in-first-half-of-this-year-to-cu.html

Walmart’s Lines Are About To Get Even Crazier

Apple’s new iPad will be coming not only to Apple Stores but also to Wal-Mart Stores eight-hours earlier.  The world’s largest retailer will be selling a limited number of iPads. This is a special arrangement because Apple does not typically favor other retailers over its over 350 Apples stores. IPads account for about 20% of Apple sales and it is the company’s second best-selling product behind the iPhone. This is a huge competitive advantage for Wal-Mart because it gets a head start over Best Buy and Target.  Sales will probably not affect Apples stores too much because of the limited quantity that Wal-Mart will be selling earlier. Lines will form just as long around these Wal-Marts at each and every Apple store.

The full article can be found at: http://www.bloomberg.com/news/2012-03-15/wal-mart-to-start-selling-ipads-at-midnight-before-apple-stores.html

Apple Might Not Control the Whole World Just Yet…

Cisco Systems is working to reinvent the way in which we watch television. They announced that they will pay $5 billion to acquire a British software company NDS Group.  NDS says that, “An amazing user experience is critical to the operator’s success. Thanks to powerful MediaHighway® set-top box software and intuitive EPGS and UIs like the award-winning NDS Snowflake™ UI, NDS makes it easier for your customers to maximize their enjoyment and use more of the services you have to offer. The NDS Studio Design team will create a unique look and feel for your operation, or choose from a wealth of existing solutions.”

            NDS has a large assortment of technologies all designed to “maximize (a television market’s) content investment and revenues, push your brand and give your customers the flexibility to enjoy their content on all of the devices they own.” Cisco wants to be ahead of the game and moreover, ahead of Apple in the content area. Other competitors such as Rovi and Google are looking at this same market.

            Apple is always at the forefront of the next innovation so other companies must take any advantage they can so that they do not lose out. Portable and streaming content is the next big revolution but the technology and means of distribution have yet to be perfected. If this company’s technologies turn out to be successful, it will be Apple that will have to find out how to “copy” Cisco’s innovation.  

            Read the full article at: http://www.forbes.com/sites/greatspeculations/2012/03/16/watch-out-apple-itv-cisco-going-for-the-kill/

"Craps"...We're More than just Baccarat!

In an adage.com interview with Foxwoods CMO Rebecca Carr, she speaks about how Foxwoods is trying to show that they are more than just gambling at this Connecticut casino. Their new strategy focuses on an "Anything but Ordinary" campaign that focuses on a "more than gaming" strategy that works to compete with other east coast casino-resorts and furthermore, online gambling.

Carr believes that previous advertising has gotten a bit "out of control" and had been sending "mixed messages." She focused on having a strategic brand that grew along with the development of their brand. They intend on taking a traditional and non-traditional advertising approach with ads on TV, billboards, newspapers, sweepstakes, scratch cards, etc. Foxwoods targets primarily the New England region. Foxwoods has a new three-fold approach focusing on the brand, the rewards-program, and segmentation. The key attributes they want to work on are luxury, fun, and service. These new initiatives hopefully will provide a new fire under this casino-resort.

East coast casino-resorts have been growing in popularity and strengthening this past year. Foxwoods is directly competing with other New York casinos and more specifically, Atlantic City. This year, Atlantic City casinos, recorded it's first positive quarter in years and is working hard each day to attract more people to its hotels and casinos. The east coast is growing in its' casino-resort offerings and customers no longer have to look only at Vegas for that all-inclusive luxurious entertainment experience.

Read the original article at:
http://adage.com/article/cmo-interviews/cmo-q-a-foxwoods-seeks-rebuild-brand-gaming/232765/

Knicks' Lin is a Marketer's Dream Waiting to Happen

"Linsanity," or so it has been called by the team and New York media, is the craze started by Knicks starting point guard Jeremy Lin. He has taken the team by storm and has helped build a three-game winning streak. Web searches for Lin have skyrocketed and marketers are keeping their eye on this potential. Ratings for Knicks games have gone up 36% on MSG network and tickets are selling at an all-time high. The interesting fact is that although Lin is grabbing the hearts and minds of Knicks fans, he'll have to work harder for those corporate sponsorships.

Jeff Urban, former senior VP of sports marketing at PepsiCo, said that, "Two games doesn't make a trend." Companies do not want to start offering sponsorships to Lin in case his fire subsides. Lin's explosion onto the court was a result of their main starter's injury but nobody had expected much of Lin before. He had been cut twice and was signed after Knicks rookie Iman Shumpert sprained his ankle. Lin has taken his opportunity in stride making sure to impress all those who see him play. On Feb. 10th, replica Lin jerseys and t-shirts went on sale for the first time. The NBA's partners in China are broadcasting more New York games and are showing the games in Lin's parents hometown in Thailand.

With Lin's background, not just his heritage but being a Harvard graduate, presents a multitude of opportunities. Advertisers really should not wait too long because they are in danger of him growing too big and becoming too expensive for them. This is the prime time to scoop Lin up before "linsanity" takes over the nation.

Read the original article at: http://www.bloomberg.com/news/2012-02-10/knicks-lin-helps-generate-top-ticket-prices-as-sponsors-say-wait-and-see.html

Facebook - "Like' for an Ad

Facebook Inc. is no longer a social networking site but its' own entity of 845 million users. When you have a business attracting that large of a market, the next thing to come are surely the advertisers. Each Facebook page is a veritable gold mine of information, from favorite movies and music to what causes individuals feel strongly towards.

The struggle comes when Facebook has to figure out how to let advertisers use this information without users feeling like their privacy is being violated. It has to be a consumer's best friend giving them everything they could want in a social networking site while at the same time taking everything that consumer gives them and selling it to advertisers. Currently, it delivers "more than one-third of the ads seen online" and "promises that 65 million users" can see a particular ad according to Geoff Klapisch, an advertising professor at Boston University.  The problem is that Facebook earned about $4 per user last year but with a user-base larger than the European continent that number has to increase greatly. It's main competitor is Google which sold $26 billion in online advertising. Google's ads not only are seen on its' website but through its' Adsense program, all over the internet. Google triumphs over Facebook in the fact that once you type in a search request Google will give you an ad pertaining to your inquiry. Facebook, on the other hand, cannot respond as quickly. Google also does not have to tow the same lines that Facebook does each and every day.

Facebook has to balance between privacy and marketability to companies. Users will get turned off if they start to see Facebook as a data mining plant rather than a place where they can connect with friends. On the other hand, if businesses believe that Facebook cannot provide them with the information they need, they're more likely to invest more into Google. Last year, Facebook dealt with  complaints filed over the lack of notification before changing its' privacy practices. The minds at Facebook know that people are watching so they cannot try to sneak anything by users. If they can find a way to provide the service users want while having those same individuals be comfortable with their information being shared to businesses then Facebook might just have their ace in the hole against Google.

Full article can be found at:  http://articles.boston.com/2012-02-03/business/31016869_1_facebook-advertisers-users-choice