Peter Moore of Microsoft had gamers and non gamers alike highly surprised when he started endorsing the Nintendo Wii gaming console. There was a lot of speculation to figure out whether this was just a strategic move to hamper the launch and sales of the Sony PS3. According to Peter, who claimed he was a big fan of the Nintendo consoles, for the price of one Sony PS3 it was possible to obtain an Xbox 360 as well as a Nintendo Wii and still have some money to buy a few more games. If we remember clearly, the price of the Blu Ray enabled PS3 was meant to be an astounding $499 to $599, which Sony claimed was suitable for the features it offered.
However, on further speculation, it was found that the reason for Moore to do this was to enable greater sales for the Xbox360 before the PS3 got launched. He also further said that the biggest problem of the PS3 would be its price. The Wii wasn’t considered a direct competitor for the Xbox 360 as per him. Endorsing the Wii was expected to help the sales of the Xbox, which was at that time lagging behind the PS2.
Even with the PS2 being launched almost 5 years before the Xbox 360, a Marketing & Research firm, NPD group showed that its sales easily beat that of the Xbox360. In the May of 2006, research showed that the Xbox 360 sold 11000 units less than the PS2. However the gap between the two was reduced slightly with Microsoft adding a third manufacturer to the production of the Xbox.
Even though the Nintendo tactic wasn’t meaningful, the sales of Xbox did increase after that. The demand increased alongside the increased production capabilities thus resulting in brisk sales. The PS3 was the biggest threat though. The PS3 came with better hardware and software than the PS2 and was anticipated to be a greater success. This resulted in Microsoft increasing their effort on marketing campaigns, if they had any chance to make sure the Xbox reached the top position in the market.
The tactic in conclusion was to basically get Nintendo and its fans over to Microsoft’s side, resulting in a battle of two versus one. This further intensified by cutting down the price of the Xbox 360 during the month of November, which would coincide with the launch of the PS3.