Marketing the Xbox Live Arcade - Edition 02

xbox-live-arcade_2_0 The Arcade concept all started off on the original Xbox and had a very limited library. If you weren’t aware of this it’s not really surprising considering Microsoft didn’t do a very good job with it so many moons ago. That lacklustre trend continued with the Xbox 360 as Microsoft simply just launched the console and the Xbox Live Arcade with only a handful of titles. You might say they were testing the waters to see what kind of reaction they would get from consumers to see if it was worth diving into. Now these days it’s extremely difficult to get a hold of Arcade sales, but you would have to assume that what Microsoft initially saw from the Arcade was positive enough to keep moving forward.

The initial batch of titles for the Xbox Live Arcade really was nothing too spectacular. Geometry Wars was without a doubt the first big title for the Arcade as it piled up the downloads and popularity. After the launch of the Xbox Live Arcade things got quiet. Very quiet. Things got so quiet it seemed like it was years before a new title would grace the service. No question this was a big mistake on Microsoft’s part, especially when you’ve got hungry consumers ready and willing to shell out cash to purchase new titles from the service. Should they have been more prepared with the service? Absolutely. No question. However, we can give Microsoft a little break considering that no one really had taken a stab at this concept on a console before. If Microsoft over prepared and the service couldn’t hold up then where would they be? You could say Microsoft played it safe.

There is no question that the launch of the service could have been handled a little bit better. No one wants to go weeks or months without seeing a new title arrive on the service. One way around this could have had Microsoft limiting the amount of games that would launch with the service and slowly release more titles as the weeks and months went by. Microsoft didn’t go that route. Oh well, you live and learn in the console industry. We see that Microsoft has changed today as it’s now extremely rare not to see a title hit the Xbox Live Arcade every week. Sometimes consumers are even treated to a special double title release on Wednesdays.

The main goal for developers providing for the service is to break even when all is said and done. It’s just common sense that any developer would want a game to turn a profit, but not every game on the service has been able to do that. We’ve seen developers get vocal and share their displeasure on the financial return that games have brought. Some might say that after a game hits the service that’s pretty much all you can do. Not true. These days reviews are likely to have some say in the success of a title. The occasional banner advertisement promoting an Xbox Live Arcade title can also only do so much. One of the main issues is that the service sees so little promotion and that is a problem.

Microsoft may be all for the Xbox Live Arcade but there are times where they certainly don’t show it. It’s a true wonder knowing that the Xbox 360 has been out for years and Microsoft still hasn’t provided a dashboard blade for the service. If you state that the Xbox Live Arcade is key to the success of the console they why can’t you release a console update that provides a dash for it? There is something lost in translation no doubt. At some point you have to feel that this issue will eventually be addressed, but Microsoft seriously can’t keep ignoring it much longer. The more eyeballs seeing the blade the better your chances are for making more sales.

In the end that is what it is all about.

The other promotion we’ve seen for the Xbox Live Arcade has been minimal to non-existent (with the exception of the Xbox 360 Arcade SKU). Microsoft has only released one compilation disc so far since the service launched. This is something that they should really consider doing more often. Make it an annual release where they select a handful of games under a certain criteria (top selling, best overall review score, retro, single player, multiplayer, etc.) and gives consumers that don’t have access to the internet a chance to experience the Arcade. Recent times have seen PopCap Games release a compilation disc of Arcade titles. Remember, there’s a decent sized portion of Xbox 360 owners that don’t have access to Xbox Live. These are consumer that you must not ignore because they’re a vital source of revenue.

What else have we seen in terms of mass promotion of the Xbox Live Arcade? Not much. Some retailers are slowly now offering Xbox Live Arcade cards that come with a code that you enter into the Marketplace and download. It’s not much in terms of promotion, but it is another source Microsoft has been using to push the Xbox Live Arcade. They also aren’t available at many retailers.

There are numerous forms of mass media available to Microsoft:

-Television

-Radio

-Newspaper

-Magazine

-Outdoor

-Internet

Right off the bat it’s very clear that Microsoft has the internet medium covered. The radio, newspaper, magazine, and outdoor mediums are forms that Microsoft should stay away from with the Arcade. Television is an interesting form and it’s something that could potentially work. Over the years we’ve seen the “Jump In” campaign take form through various commercial spots. Why not put the Xbox Live Arcade on center stage and give consumers another reason to consider the Xbox 360 over the competition? It’s something to think about.

The biggest promotional push Microsoft has used for the Xbox Live Arcade was the Arcade SKU. It gave consumers an Xbox 360, components, a memory card, and a compilation disc of five Arcade titles. Good call or ball call? Some might say good, but I’ll go with bad. It’s simply fantastic that consumers are immediately getting a taste of the Xbox Live Arcade, but there’s not much they can do after that. How much more of the Arcade is the consumer going to get with a paltry 256MB memory card? Not much. If the consumer really wants to get serious with the service they’re going to have to upgrade the storage device on the Xbox 360 and purchase a hard drive. So basically the consumer has to spend money before they can spend more money to purchase Arcade titles. They aren’t forced to do this, but it’s a path they can eventually go down. Microsoft was bundling Forza Motorsport 2 and Marvel Ultimate Alliance with the Xbox 360 Pro Bundle, so why exactly would an Arcade compilation disc not fit with that kind of a bundle?

As of right now the only difference between the Xbox Live Arcade now and its first year is the content. Consumers now expect a new title on the service every week, whereas that was simply a pipedream in the first year. The promotion is still lacking, yet Microsoft is so adamant over it.

Stay tuned for the next edition.

Comments

Really enjoying those

Really enjoying those editorials.

Great editorial! Are you

Great editorial! Are you also going to do editorials on other subjects?

Drm, rejecting games, and developer issues (rolayties and more)

Here's my current

Here's my current plan:

Tackle the Marketing Mix -
-Product
-Price
-Place
-Promotion (covered in Edition 02)

Tackle the opposite side with the Consumer Mix -
-Customer Solution
-Cost
-Convenience
-Communication

After that we'll I'll look over what has been done and go from there. I might even start taking questions or requests later on.


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