Microsoft, Sony to market for ‘family that plays together...’

MUMBAI: Though India’s current numbers for the gaming industry continue to be minuscule compared with the $36-billion world gaming market in 2009, high growth predictions have compelled console makers like Microsoft and Sony to tweak their marketing strategies.

Both the majors are making them more India-specific by focusing their strategies on the entire family rather than on individuals, as is the case in advanced gaming markets such as US and Korea. But there is still uncertainty over whether such an approach will work in India.

Typically, in a market like the US or Korea, consoles are aimed at enthusiastic individuals. But, Microsoft and Sony are determined to change this age-old belief and target families and thus give their products an universal appeal, and at the same time justify forking out the higher cost for the consoles. Microsoft’s Xbox, for instance, is priced at nearly Rs 20,000, while Sony’s latest PlayStation 3 (PS 3) is expected to cost nearly Rs 40,000. Add to that the cost of software and the price goes up to anywhere between Rs 1,000 and 2,000 as no consoles come with pre-loaded gaming content.

Says Sony India senior manager (marketing) Ken Nakazawa: “Agreed that the pricing point is high, and hence the product is primarily aimed at customers with a steady income — families rather than individuals. More so because the console now also doubles up as the entertainment unit in a household.

This further justifies the pricing point. “Sony has installed a Blu-ray high-definition DVD player in each of its new PS3 consoles. Alan Bowman, General Manager, Entertainment and Devices Division (APAC & Greater China), agrees with Mr Nakazawa. He says, “It is a segmented approach we are taking with respect to India. And yes, our product is now aimed at families.” Moreover, the pricing is on the higher side also due to a high import duty structure for consoles. Thus targeting an individual and hope to succeed in the Indian market becomes Herculean, he adds.

To increase awareness and acceptance among non-serious gamers which is now a critical component of the marketing strategy, Microsoft also announced a tie-up with ICICI Bank for an easy financing scheme. It is also focussing on the choice of game on offer for its consoles. These now come with more universal appeal. For instance, Viva Pi$ata, game launched by Microsoft involves activities such as taking care of your pets, home turf, garden and so on. It also set to come out with a virtual game for cricket with Yuvraj Singh as the brand ambassador, another effort to draw the entire families considering the universal popularity of the sport in India.

Going online with the product also holds the key to get families to buy consoles says Mr Bowman. If Microsoft is counting on its games and celebrity power, Sony’s thinking on similar lines for its yet to be launched PS 3. Says Mr Nakazawa, “We are evaluating our options to get popular PlayStation users like Shah Rukh Khan as gaming evangelists and market our products and thus broaden the target audience for PS3.” Sony is also looking at promotional material aimed at parents. Sony has also ensured its product features will appeal to those between 8 and 60 years — the PS can also be used to watch movies, upload photos and so on. And like the Xbox, PS3 is also set to come with an online option.

But, marketers say that consoles still come with a huge past baggage. Says marketing consultant Harish Bijoor, “Targeting the family is basically to create a justification for the high pricing point. The Indian market is still very nascent for gaming products. It is still in a solo gamer mindset.

Creating family value for products such as gaming console will take a long time.” Retailers of the these consoles are also unsure as to how this strategy would work in India. Says a Mumbai-based retailer who does not want to be named: “Mostly we get kids who pester their parents to buy a console for them. Even as manufacturers are doing their bit to involve everyone in the family, most members of the family still consider gaming a complete waste of time and, more importantly, an avoidable distraction.”

The Kulkarnis who bought PS 2 recently for their 13 year-old, agree. Says Rahul Kulkarni: “Essentially, I bought the console for my son to play on it. Video games are for kids. Moreover, I am not a gaming enthusiast, what use does it possibly have for me (read: adult).” Meanwhile, avid gamer Dhruv Parpia too thinks that to have parents and children sit together and play console games is still far off from an India point of view. “Although me and my mother many a times sit and play games on my console, I think that until my generation gets into the parental mode, I do not see this succeeding in India.”

But Microsoft says that it is working on that as well. Says Mr Bowman, “We are now looking at having an online market place for music and movies, where through the use of the Xbox Live feature you can access and buy music and movies; even interact with favourite stars. This should get more families, especially the adults in the family to use consoles.” Connected entertainment and more social activities through consoles would also bring more families to buy the consoles, he adds.