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1、2PROJECTAFP/GettyImagesMANAGEMENTTwoboysslugitoutinanXbox360wrestlinggameatthe2011ITShowinSingapore.XBOX360ouryearsaftertheintroductionofXbox,Microsoftneededtoquicklydesign,Fdevelop,andproduceanewproduct.Sony’sPlayStation2wasdominatingthevideogamemarketandMicrosoftneeded
2、anewproducttocompetewiththeimpendingreleaseofPlayStation3.Developingsuchaproductisaprojectofmassiveproportions.Theprojectconsistedoffourphases:(1)design,(2)analysis,(3)development,and(4)launch.TheresultwasXbox360.DesignThedesignoftheXbox360wasacollaborativeeffortbetweenM
3、icrosoftandmanyotherfirms,includingAstroStudiosinSanFrancisco,whichdesignedtheoverallconsoleandcontroller;IBM,whichdesignedtheprocessorchip;ATI,whichdesignedthegraphicschip;andahostofgamedesignfirmstodevelopgamesforthenewproduct.Akeyelementofthenewproductwasthebuilt-inIn
4、ternetaccessthatallowedgamerstoaccessonlinegames,buygameadd-ons,andaccessmultiplayergamesdevelopedexclusivelyforXbox360.Microsoftalsoincludeditsprimarymanufacturers,FlextronicsandWistron,inthedesignprocesstooptimizetheproductionandassemblyofthemorethan1,000partscontained
5、inanXbox360.AnalysisGettinganestimateoffuturesalesforanewproductisalwaysdifficult;how-ever,inthiscase,thehistoricpatternsforPlayStation1,PlayStation2,andXbox4950PART1CREATINGVALUETHROUGHOPERATIONSMANAGEMENTwereuseful.AnalystsfoundthatthepeakyearforaPlayStationproductwas4
6、yearsafteritsintroductionandthatthelifecycleforthoseproductsisabout11years.ThisinformationprovidedabasisforestimatingthesalespotentialofXbox360,althoughactualsalesmaybelimitedduetosupplyconstraints.None-theless,Microsoftrealizedthatthepotentialwastheretoopenanewgeneratio
7、nofgameconsoleswellaheadofthemarket.DevelopmentMicrosoftworkedcloselywithFlextronics,Wistron,andthevariousdesignfirmstoironoutmanufacturingproblemsintheearlyphasesofXbox360production.Onceinitialproductionwasunderway,MicrosoftbroughtonCelesticatoaddpro-ductioncapacity.The
8、decisionwasmadetofocusmanufacturingoperationsinChina.Alltold,10,000workersinChinawouldbeinvolvedinXbox3
