The other day I saw an ad on TV saying how Xbox is cutting the cost of its membership fees for its online gaming. The costs went from $60 a year, down to about $40.
Xbox has transformed the way people now use the Live platform, transitioning the product from a teenage target market, into the everyday setup for living rooms. They offer the news, movies, games, Facebook, and you can even connect your computer to the device. They have expanded their addressable market into adults, who they hope will use their credit cards to watch movies and other cost-related features.
I feel like Xbox is hoping to reshape how consumers use the device. Blockbuster was wiped out by Netflix, is Xbox attempting to target cable companies and even Netflix? By lowering their prices it will allow them to generate more demand around Xbox Live, as more age groups begin to find the usefulness in the device.
If Microsoft can power sync your laptops, your cell phones, your living room entertainment system(Xbox Live) and be the sole provider behind it, they will provide dangerous competition to companies within the US. Will Microsoft continue growing the Xbox platform?
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