Microsoft: Xbox Division

10 Pages Posted: 21 Oct 2008

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Robert Jones

University of Virginia - Darden School of Business

Abstract

Rob Jones, a Business Development manager intern, has been asked to make a recommendation regarding the purchase of a key piece of intellectual property for use in the Xbox. The project requires collaboration with several functional groups within Xbox and, ultimately, their buy-in. Jones has collected assessments and perspectives (sometimes conflicting) and needs to assimilate them into a recommendation. Jones is surprised to learn that his manager has arranged for his recommendation to be presented to the Division's CFO.

Excerpt

UVA-QA-0701

Microsoft: Xbox Division

Rob Jones's summer as a Business Development manager intern with the Xbox Division of Microsoft had started. As a member of the Business Development Team, an internal consulting group for Xbox, he was at long last going to be able to put into practice the concepts and tools that he had developed during the first year of his MBA program. He met with his boss, Ray DiCasparro, the director of Business Development for Xbox, and learned that his first assignment would be to make a recommendation regarding the purchase of a key piece of intellectual property from PGSC, Inc. DiCasparro emphasized that the project would require collaboration with the Procurement, Business Development, Engineering, and Finance Teams within Xbox. Their buy-in and support would be essential to an actionable recommendation.

The Xbox Division

Microsoft entered the video game hardware market in 2001 when it launched the Xbox console. The Xbox competed with Sony's Playstation 2 and Nintendo's Game Cube. By February 2005, Microsoft's market share had grown to the extent that it was exceeded only by Sony. In November 2005, Microsoft launched the Xbox 360, the first console in the seventh generation of game consoles, nearly a full year ahead of Sony's Playstation 3 and Nintendo's Wii console. With all major players in the market in 2006, it was anticipated that 2006 would be a critical year and that competition would be tougher than ever.

In a speech on May 19, 2005, at the Microsoft CEO summit, Bill Gates declared that the Xbox 360 would be an integral step in bringing Microsoft into consumers' living rooms:

. . .

Keywords: risk analysis, spreadsheets, presentations

Suggested Citation

Frey, Sherwood C. and Jones, Robert, Microsoft: Xbox Division. Darden Case No. UVA-QA-0701. Available at SSRN: https://ssrn.com/abstract=1284273

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

Robert Jones

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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