The countdown has begun, within a few days, the Xbox One will be launching in India and our country will be a current generation player on both the rival console platforms. I understand how the Xbox fans are currently counting down the days, don’t worry as I am in same boat myself. While we gear yourself up for the launch, let’s have look at what at the advantages and disadvantages of the exclusive deal between Amazon India and Xbox India.
If you have no clue about the arrangement of this one-of-a-kind deal, check out this article.
Let’s get the things started by looking at the Advantages:
1. After Sales Service: Currently only a few Xbox One owners have been reporting problems with their system. It is very unlikely you will face any issues with your system any time soon. However if you do, Microsoft will fix them for you as part of its warranty. Having an exclusive partner will help Microsoft track problems or any faulty devices with ease. All the Xbox One customers can expect quality service from Amazon and Microsoft. Ensuring customers a quality after-sales service experience will help Microsoft improve its market reputation.
2. Better Deals & Sales: This seems to be the biggest advantage of this deal. Game prices in India are already very high, with only a handful of people who can afford them. Moreover, it’s very rare to see any good deals or discounts being offered in India through any retailers. Microsoft and Amazon on the contrary, can improve this situation. By giving discounts and deals, especially during festival seasons Microsoft can bring more sales and maybe attract new gamers. This is still speculation, but I have an optimistic feeling that Microsoft will utilize this opportunity to get more gamers to jump on the XBox One Bandwagon.
3. Overview of Audience: It is very critical for a company to know about its audience and that’s exactly what Microsoft has planned. Amazon sales data will help Microsoft gain knowledge about the areas where the Xbox One is selling and what exactly its consumers are looking for. Microsoft can utilize this data as a weapon against its competition, using it to plan its future tactics in accordance to the data.
Now let’s move on to the Disadvantages:
1. Loss in Retail Sales: Online shopping might be gaining popularity, but one cannot forget the size of the retail market in India as well as the rather limited penetration of online payment services. Microsoft has potentially lost a very big chunk of its consumers by scoring an online-only deal with Amazon. Having zero presence at retail could hurt Xbox One sales considerably, especially given its pricing.
2. Bad Reputation: There is no doubt that many retailers will promote the Playstation 4 over the Xbox One because of absence of Xbox One in their stock in a case of the sour grapes. In India, the word of a retailer means a lot to the people. We will see many retailers of all sizes criticising the Xbox One and recommending the PS4 to many gamers.
3. No Product Experience: People who frequently visit the gaming sites have a fair idea about how the Xbox One looks and works, but what about those who don’t? The Xbox One User Interface and mechanics are pretty much unknown to the average gamer or their potential gifters. Above all, people will hesitate committing to a ₹39,990 purchase for a piece of hardware which they are not aware of and have no trial expreience to build perception.
4. Day One Launch: Midnight launches in India are not as regular as in other nations, but we may be moving towards a future where we see even lesser support from retailers, as they might skip midnight launches for Xbox One versions of games or they might not even bother stocking them. For gamers who like to play their games on day one, depending on the courier guy might not seem an attractive option, especially given current expreiences. If one checks product reviews for games on any of these e-commerce sites, a majority of them complain about the tardy delivery service rather than the product itself.
Moving towards a online shopping future may sound attractive for the balance sheets, but the timing of the deal between the two companies seems to be premature. India currently doesn’t have the groundwork laid to move towards a complete online-only shopping experience despite the high vluations of our e-commerce giants. Microsoft’s plans with Amazon certainly seem to be ahead of their time.
