Microsoft's Kinect for Xbox 360: Success Hinges on 3 Key Factors Author: Martin Olausson Publication Date: 1 Jul 2010 Pages: 5

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The annual Electronic Entertainment Expo (E3), the premier event of the year for the video game industry, took place in Los Angeles last month and saw the official unveiling of Kinect for Xbox 360. The key challenge for Microsoft Xbox at this point in the console lifecycle is to reignite stagnating Xbox 360 sales and that is easiest done by expanding and extending the Xbox footprint beyond the hardcore gamer segment. Hence it is focusing on the social gamer segment with the Kinect platform. Strategically we believe Xbox has made the correct decision in focusing on non-traditional segments with Kinect (while at the same time strengthening the roster of hardcore games to appease the traditional segment) as this approach has the greatest potential for expanding its console footprint. However, we believe three key things need to happen if this strategy is to become successful.