Following the Chinese government’s lift on the international console ban, Microsoft hopes to sale the Xbox one to attain huge profits from the new market. With a population of about 1.36 billion, Microsoft can make huge sales. To maximize revenue, the Mehdi says Microsoft may ‘continue to price reduce’. Furthermore, Microsoft may also introduce cheaper additional brands since use of Xbox no longer requires kinect. This can be a great competitive advantage for Microsoft. However, rival products like PS3 and PS4 are likely to be in the search for markets in China. This industry has high competition and unless Microsoft can produce the cheaper versions of Xbox before December, it is likely lose out to its rivals.
The firm that will have the best combination of marketing and pricing techniques is likely to win a larger market share. The use of retailers is definitely a great way to promote the product, but can be combined with advertisements on billboards, internet and televisions.