The Importance of Precise Segment Targeting, Illustrated by the Xbox One

by hyewonlee

2013 has been a significant year for the gaming community. Not only were several major blockbuster titles such as Grand Theft Auto V, Assassin’s Creed IV and Call of Duty: Ghosts released, this year hailed the launches of two next-generation consoles from Sony and Microsoft – the Playstation 4 and Xbox One, respectively. The consoles have been subject of heated debates in gaming communities. So-called “fanboy wars” were and still are a common sight, Sony and Microsoft fans fiercely defending their favourite console. The most common point of discussion, of course, are the successes and failures of each console’s launch. In regards to this, Brandchannel comments that Microsoft’s overly ambitious targeting of a broader audience has cost the Xbox One (which I’ll refer to as the X1), or rather, benefited the PS4.

The above ad confirms Microsoft’s marketing message for the X1 – to be an all-in-one home entertainment system. Was it really a wise move on Microsoft’s part to attempt to sell the X1 to a much wider audience? Obviously, the largest user groups of gaming consoles are, well, gamers. There is a certain reputation, I think, that gaming consoles bear in the eyes of people who have no interest in video games. It isn’t necessarily a positive one. If they wanted the X1 to join the ranks of regular home entertainment devices, I don’t think Microsoft presented a strong enough incentive for non-gamers to purchase it over their usual choices.

Brandchannel mentions that Sony on the other hand has been focusing solely on its regular target segment of console gamers, which may be giving it an advantage over its competitor. Sony had the edge over Microsoft’s on-the-fence marketing strategy which left neither gamers nor mainstream consumers fully convinced. This goes to show how crucial selecting an appropriate target segment is in marketing a product. Aiming big isn’t necessarily the best.