Thus, its pricing is its strength as the first time gamers might prefer an Xbox over a PlayStation. The content on MBA Skool has been created for educational & academic purpose only. To do so, Xbox needs to stay updated with all the international patents and copyrights existing in the region it is willing to enter. Exclusive Games – A reason that PlayStation is ahead of Xbox is because of the many Exclusive games launched on the PlayStation such as God of war, Uncharted and others. Dropping console sales – One of the first threat to Xbox is the dropping sale of consoles. Browse analysis of more brands and companies similar to Xbox PESTLE Analysis. Frequent Upgrades means loss of customer – We looked at the recent sales of iPhone 8 and iPhone X which has seen a drop in sale because of the too frequent upgrades. Various other changes in the monetary policies, such as GST or duties, will increase or decrease the cost of Xbox, thus affecting the sales directly. Microsoft has Halo and Gears of war but there are limited games which are a platform seller for the Xbox brand. Higher the disposable income among the population better will be the sale. In the Xbox PESTLE Analysis, the environmental elements affecting its business are as below: Microsoft and Xbox believes in accelerating global progress to a more sustainable future. As a result, many customers buy lesser games or they buy it from the resale market thereby saving money. Subscription services – Steam, which is also a gaming service and known for its games like Half Life, has started subscription services and games on demand services. microsoft pestle analysis below. Another data suggests that people play games more with their family and friends, thus the games must be designed accordingly. As Hollywood will help them grow internationally. This article has been researched & authored by the Content & Research Team. 2nd highest market share – Xbox has the second highest market share in the console market and it is right behind Sony’s PlayStation. The company has undertaken certain, goals, that it wishes to accomplish. The sale of Xbox games that may be prohibited in these countries will further attract lawsuits, which needs to be avoided. If the fluctuations are high, then the profitability also gets affected. Thus, lowering the price of games can be a big opportunity in the SWOT analysis of Xbox. The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a thorough external analysis of the business environment of any industry for which data is available. Xbox PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. 236-237). Always behind PlayStation sales – A big disadvantage for Xbox is that it is always behind PlayStation in its overall sales and has rarely taken over the number 1 spot. Lowering pricesof games – A strategy which can help Xbox in its console sales is to lower the selling price of games especially in developing markets where it is exporting the games. Thus, diplomatic relations are very important in those regions. PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of political, economic, social, and technological factors. I am a serial entrepreneur & I created Marketing91 because i wanted my readers to stay ahead in this hectic business world. Deep pockets – As Xbox comes from the house of Microsoft, it is safe to say that Xbox has deep pockets and can survive a price war for a long time. Since the company has a large number of employees working, there is a high chance of data leak or software leak that may affect the company on a massive scale. Larger Controller – Many gamers feel that the controller of an Xbox is its selling point mainly because the controller is large and fits the hand perfectly. Microsoft is on its way to meet the goals set by the Paris climate agreement by 2030. Xbox and the parent company has established the largest solar park in Virginia, USA, that generates enough electricity to power up about 100 million led lights. High Resolution – Xbox one which is the latest Xbox has splendid resolution and can show its power even on a 4K tv with ultra-high resolution and yet the games run smooth. Xbox PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Opportunities in the SWOT analysis of Xbox, What is Charisma? A SWOT analysis is advantageous for presenting the database derived from the internal and external analysis in a systematic and concise manner (Kotabe & Helsen 1998, pp. The political factors in the Xbox PESTLE Analysis can be explained as follows: The parent company Microsoft launched the Xbox in various countries across the world and so is subject to the various political conditions prevailing in these areas.