Microsoft's ad budget: $945MM [update 2]

by Vladimir Cole { Nov 12th 2006 at 11:08PM }

Nintendo's announcement that they'll spend $200 million to market the Wii reminded us that we've been sitting on this clipping from Advertising Age (from one of the October editions of the magazine). Ad Age tells us that Microsoft's new Xbox marketing guy (ranked 22nd in Ad Age's list of power marketers based on his budget) has $945 million to spend advertising Microsoft's entertainment products.

[Update 2: A reputable commentor wrote in to correct some aspects of the Ad Age clipping: "Advertising Age is a fine publication, but they posted Microsoft's advertising spend, as reported by 3rd parties. This is not how much the Electronic Devices Division spends. The post #17 is correct. Chris Stephenson is in charge of zune marketing."]

While that's a whole lotta lucre, ain't no telling exactly how the pie will be divided between all the attention-starved products in Microsoft's portfolio. Besides the Xbox 360 console itself, plenty of other MS entertainment products compete for a share of that bankroll: first party games (Halo 3), Games for Windows, Casual Games, peripherals, services (Xbox Live), Zune, etc. Whether the total figure allocated to the Xbox 360 is more or less than Nintendo's $200 million marketing committment is the billion-dollar question.

Anybody got data on how much Sony'll be spending on the PlayStation 3 and Blu-Ray launch? Given the importance of these products to the company's future, chances are they're shoveling Benjamins into that famed Sony marketing engine by the dumptruck fulls.

Tags: nintendo, playstation 3, ps3, wii, xbox 360, Xbox360

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Reader Comments (Page 1 of 1)

Sloan Ranger @ Nov 12th 2006 11:15PM

Somebody needs to explain the Zune to me, because I just don't get it - why should Apple be paying attention?

Ritz @ Nov 12th 2006 11:16PM

How much has Sony spent on their ads so far? And then how much more after this point?

I know Nintendo's logic of not advertising till there is a product available, but Sony's logic seems competent as well. Think about it, Sony has to build enough hype that is lasts through the shortage while convincing people to wait it out till they can buy one (preferably not getting a Wii or 360 instead), maybe months from now.

I expect a huge chunk of that money Microsoft has to spend will be spent on Zune. It's going to take A LOT of effort to push it as an equal competitor to iPod.

Cherry Ghost @ Nov 12th 2006 11:32PM

And how much of that $945 million is going to you?

Eric Von Shpeel @ Nov 12th 2006 11:24PM

Japanese Budget: $25

h2opoloplayer @ Nov 12th 2006 11:28PM

Vladimir Cole, should we be surprised that right after an article basically praising the amount of money nintendo has to spend on marketing that you shoot right back with your microsoft love. Please drop the anti-nintendo propaganda. Its not a coincidence your last couple posts in less than a day are climbing to the top of the most commented on board. I can only think that you are trying to enrage people. Please be professional and don't try to turn every single thing into a fanboy war.

Ubersnuber @ Nov 12th 2006 11:39PM

hmm..I'm just waiting for this post to be swamped by ninty-boys so Joystiq soon can make a
"we at joystiq are very sorry that Vladimir posted an opinion, of course Vlad is a dick since he dares to do anything else than shoot rainbows up your arses"-post (I think you know what I'm talking about)

I like Nintendo and I love Zelda, but I do respect VC's opinion.

Well, I guess it's swamp time;)

Optimus Prime @ Nov 12th 2006 11:40PM

MS is probably spending less on 360 than what Nintendo is doing.

360 has been out a year as opposed to a complete launch campaign for wii. Nintendo also has to educate the masses about themselves (theyve been out of the console race for a decade), as well as a *new* way of playing (wiimote), and they need to keep pushing that 'graphics dont matter' perspective that they've been doing since E3 (since it is so ingrained by now).

bubbacrosbysucks @ Nov 12th 2006 11:43PM

nice follow up cole. Microsoft should be plowing the media with thrice as much money as Nintendo. (The quality of the ads so far have been at least as much more impressionable than the other two competitors' campaigns combined). They should just F the Zune, cuz if the marketing right now isn't working without word-of-mouth, then it won't take off.

And seriously, who cares how much Sony is putting in. The best thing they could do is give people free games.

Revo @ Nov 12th 2006 11:48PM

"Vladimir Cole, should we be surprised that right after an article basically praising the amount of money nintendo has to spend on marketing that you shoot right back with your microsoft love."

It makes perfect sense to post the article for the sake of comparison. This doesn't in any way imply that the 360 is better than the Wii, it only means they're spending more money advertising it. I find it hard to believe that this would enrage anyone.

Peter Davis @ Nov 12th 2006 11:53PM

one could argue that its worse than the wii if they need to spend more money to promote it. ye of little faith in ones own product? if only i was serious, because things dont work that way.

Silver @ Nov 13th 2006 12:04AM

$1 billion, $10 billion, what difference does it make? Microsoft ads universally suck; airing them 100 times is just 100x the suckage.

The company simply doesn't know cool and it doesn't know consumers. No matter how many of their employees shave their heads and legally change their names to single letters or symbols.

Groovy Guy @ Nov 13th 2006 12:05AM

Make no mistake, Vlad does this on purpose. He's done this all day today, so of course he will continue to do it. Don't everyone defend him on this. This morning's article's were nothing but anti-Nintendo bull-shit, and I can't see anyone defending his "arguments". I don't put it above him to be posting as much as possible against Nintendo anymore.

Why are you doing this so much recently Vlad? I'm no corporate shill, I don't give a shit about any of these super-corporations doing well, but why do you? What benefit is it to run around waving your penis in the air declaring it to be so much larger then everyone else's. It's great that you can be alowed to say whatever you want. Blog are an excellent 'organic' environment, and are much better than the big news orgs; but for the love of god, if you see this, stop all the penis waving.

Sloan Ranger @ Nov 13th 2006 12:06AM

"Nintendo also has to educate the masses about themselves (theyve been out of the console race for a decade)"

Yeah because no one knows who Nintendo is. Damn, launch is in a week hopefully they can get the word out about their company ASAP!!!!!!!!111one

MaX PL @ Nov 13th 2006 12:21AM

optimus you need to understand the competition for MS begins now that the other two consoles are out.

this is the time when theyre advertising needs to be seen. not last year when xbox 360 was the only console in market.

Kia @ Nov 13th 2006 12:25AM

I agree with D.Lo. Someone needs to fire Cole and fire him fast. This guy's nothing but a wannabe troll. Summa was never as bad as Cole, not even close. If you fire Summa for merely being misleading, I can't believe you're keeping this jerk around.

johnjacob @ Nov 13th 2006 12:28AM

Jeff Bell is not even in charge of marketing for zune.

Xbox and Zune are in different divisions within the Entertainment and Devices division at Microsoft.

samfish @ Nov 13th 2006 12:35AM

Haha! I'll laugh my ass of when the iPod crushes MS's crappy little wannabe this time next year.

Especially since, if rumors are correct, we'll be hailing the touchscreen iPod within the next year or so..

Happy @ Nov 13th 2006 1:26AM

wtf is wrong with the whiny people posting comments on joystiq these days? And how the hell is this article anti-nintendo?

I didn't know there were so many retarded whiny nintendo fanboys, I feel sorry for the reasonable ones.

P_40E @ Nov 13th 2006 8:01AM

"Science damn this Vladimir Cole! How dare he have negative opinions about this game I am perpetually orgasming over! He should be immediately fired for this incompetence!"

At least when there were anti-Sony stories posted, there'd just be a few Sony fanboys calling Joystiq biased. Now that there's an anti-Nintendo post, there's dozens (hundreds?) of Nintendo fanboys calling for the posters' death (or firing).

And of course, once we hear about how much Nintendo is spending on advertising, we must never hear how much their competitors are spending. That would be silly.

Easy_G @ Nov 13th 2006 8:01AM

You guys (commenters) are ridiculous. If anything, Joystiq is heavily biased towards the Wii. It is necessary to occasionally have a post focused on other systems. Heck even this post gives Wii the nod since they point out that while it MS may have a bigger budget, it is divided among many different divisions, thus making the budget for X360 possibly smaller.

And to LaughingMan, conflict of interest my ass. It just goes to show that at least he has some sort of knowledge in marketing, which is what he just posted about. The fact that he wants to work at Microsoft does NOT mean that hate Nintendo and should not be an editor for a videogame blog (a videogame blog that in fact deals with Microsoft products).

You guys need to remember that this is not Wii Fanboy, not matter how much it may seem like it at times. Nintendo isn't perfect, and yes, Microsoft and Sony do things better than Nintendo much of the time. No reason not to point it out.

Vlad-Keep up the good work. Somebody needs to bring these people back to reality once in a while.

Capt. Castellanos @ Nov 13th 2006 1:43AM

w/ #20
"I didn't know there were so many retarded whiny nintendo fanboys, I feel sorry for the reasonable ones."

i like the way this person thinks.

but i feel that way about all fanboys.
sony, microsoft, nintendo.
they all have thier complete retards.
i feel bad for the normal ones.

Geof @ Nov 13th 2006 1:49AM

Haha Seriously kids

This post was perfectly relevant to the last one on Nintendo's spendings. He Even asked if anyone knew Sony's.

you people are rediculious. Heaven forbid anyone say something negative about you precious wii's and Nintendo. (even tho nothing negative was said here at all.)

Drop A Load @ Nov 13th 2006 1:53AM

my leg hurts

ts8lemonade @ Nov 13th 2006 2:02AM

LaughingMan, if it really bothers you that fucking much, just leave. Nobody is forcing to read Joystiq, or to post retarded shit about how someone is "OMG ANTI-NINTENDO LOLZ." If you're "tired of boring stories about the amount of marketing being dedicated" then stop reading. Dumbass.

P_40E @ Nov 13th 2006 2:10AM

"Given two console launches, microtransactions, the holiday software about to come out (what really matters, the software)... This is the best he can come up with?"

Yeah, because after 16 stories this weekend about the Wii, they clearly are not talking about new consoles enough. Also, shouldn't you be attacking the guy who posted about Nintendo's marketing amount, rather than VC for a follow-up story about MS's?

"And anyone who intends to work for Microsoft who is running a blog about all gaming obviously does have a conflict of interest, you douchebag. Wait, lemme guess, you voted Republican in the last election?"

Because it's unheard of for an individual working for a company of have tastes and interests separate from the company as a whole.

bob @ Nov 13th 2006 2:27AM

Some of ya'll need to take it easy and try really hard to comment on the topic, not who wrote it. All this BS about this dude needs to be fired and stuff is rediculous. Jeez, to think what would happen if people could comment on the way we do our jobs. Half of you would be gone.

Kent Houseman @ Nov 13th 2006 2:29AM

Durrrr this system is not the good. How could it be
without the cellular processing of the other systems like the 360 box and playstation:redundant. The wheee is a gimmick system and uses a remote..i already have remotes why should i get another.

The grafix aren't even good. I saw the colors and they are brownish. I can just install more rams into a gamecube and tape a remote to it and have a wee. Pretendo isn't fooling me!!

359 looks so realistic I feel like I am in the cartoon...The playstation is clerely the superior station. Look at the sleke design. Beautiful. Consolls are a status symbol and not for entertainment. You wont the spherebox or PS4? Wee is not an optional. The others are like Nascars while the Wheee is like a tractor that you have to drive wiht a remote. Who wants that! ghey!!

/facemelt

Davinche @ Nov 13th 2006 6:17AM

I think Microsoft will probably be lowering the price of the 360 this month or early next month and will be gong out all guns blazing with advertising the console and gears of war for Christmas time.

Here in The UK Microsoft have been advertising very strongly already. They’ve been using their Pro evolution soccer 6 (football/soccer simulation) next generation versions ‘exclusive’ as a key advertising feature, with the occasional WWE smackdown vs Raw adverts and Saints row ads. Of course, there have been no Sony adverts because of the delay in Europe but surprisingly no Wii adverts either. Yes, there is still a bit of time till the Wii is released here, but with the Gamecube I remember distinctly that Nintendo were advertising very strongly a month prior. However, Nintendo have been doing a lot of advertising for the Ds lite and pushing that product significantly, and its already sold out threw pre orders in some stores/websites.

I’m interested with what Sony will be doing with advertising the PS2 and PSP. They really need to push these products since their aren’t enough PS3 to make it past launch day (except for eBay, of course) and Sony is more and more in a position were they will likely be eclipsed this Christmas time with 360 being so easily available. Of course PS2 is STILL outselling the 360 in NA and Europe which means they might be confident with what its going on already, and Blue Dragon still doest seem like its enough to start too move 360’s in Japan. But its starting to get to the point were everyone who wants a ps2 will have had one by now, so I don’t too expect to see a sharp boost in its sales this holiday. It’s going to be an interesting few months.

Joonas @ Nov 13th 2006 7:33AM

No, really, people: I can't read anything anti-Nintendo or pro-Microsoft or Sony-anything into the post. It's perfectly legit. Calm down.

Oh and wanting to work for Microsoft? I'm willing to bet a lot of Joystiq readers would love a job in gaming. That doesn't in any way or capacity make you ill-fit to blog about the industry. At least this guy's open about it.

32_Footsteps @ Nov 13th 2006 9:23AM

Actually, I would like some clarification on this. It seems like that number could actually be the advertising budget for all of Microsoft, not just the Games division. If so, a lion's share of said budget would go towards promoting Vista, since that release is imminent.

After all, I remember MS buying huge campaigns for previous releases of Windows. I'm expecting something similarly huge this time.

Winston Smith @ Nov 13th 2006 11:43AM

Advertising Age is a fine publication, but they posted Microsoft's advertising spend, as reported by 3rd parties. This is not how much the Electronic Devices Division spends. The post #17 is correct. Chris Stephenson is in charge of zune marketing. Whether our ads are good or getting better (post #12) is a matter of opinion, but the "next generation now" campaign, coupled with Gears of War and Viva Pinata, appear to be a good start.