Every year management consulting Booz & Co. puts together a comprehensive report on the world’s 1000 biggest spenders on research and development, and the connection between that spending and performance.
Booz & Co. senior partner Barry Jaruzelski told us that “in the US, Europe, and Japan that’s fairly easy to put together, but to do it on every market, to get South Africa, China, India, Brazil, Russia, Israel, etc. takes a fair amount more effort.”
There’s an incredible amount of money in R&D. The top 20 companies alone spent $153.6 billion last year, which is more than a quarter of the total $603 billion by the world’s 1000 biggest spenders.
Here are last year’s top 20 spenders:
Read the full report here
Two bits of news came out yesterday that illustrate how far ahead Microsoft is in the battle for the living room.
First, Microsoft announced it had sold 1.7 million Xboxes in November. That includes 1 million in the week of Thanksgiving.
The firm says that sales of those devices will reach 12 million in 2011, with Apple TV shipping 4 million.
In other words, Microsoft sold more Xboxes in a single week than Apple sells in an average quarter. And Apple is the market leader in that “connected TV players” space. At least when you ignore game consoles.
This isn’t to pick on Apple. It’s simply to point out that Microsoft’s “Trojan horse” strategy with the Xbox has worked amazingly well.
And this was absolutely part of Microsoft’s strategy from the beginning — way back in 2005 before the Xbox 360 launched, Microsoft executives were talking about trying to expand the market beyond hardcore video gamers and turn it into a more general-purpose entertainment device. But Microsoft always knew it had to make a top-notch game console first to get the installed base, then add entertainment features over time.
It’s been doing that, quietly, for more than five years now and has sold almost 60 million Xboxes in the process. With the addition of a whole bunch of TV and other video content last week, the strategy has finally reached full fruition.
Apple, Google, and other connected TV companies could still have a chance if they team up with TV makers so the software is built into your new television set. But any company who hopes to compete with the Xbox by selling an add-on box that DOESN’T play games is in a deep state of denial.
- Microsoft Sold 1.7 Million Xbox 360 Consoles LAST MONTH
- Microsoft Wants TV Execs To Come Make Shows For Xbox
- THE MICROSOFT INVESTOR: Microsoft With Xbox Will Dominate Apple TV
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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