A toy is an object for children to play with. There are many different types of toys and toys for different age groups. The US toys and games market reached a value of US$33.9 billion in 2001, a gain of 7.7% over 2000. The market advanced due to the growth in the video games sector, sales of which advanced by 47%. Excluding video games the market grew a more modest 1.8%. The toy market is less susceptible to economic cycles than other consumer markets as growth here is most often product driven.
             The toy industry is segmented into various categories. The fastest growing of these categories in recent years is the video gaming market. In the console-gaming world people know Sony and Nintendo. Microsoft, being the largest and richest software company in the world, is unknown when it comes to console gaming. This is why Microsoft is counting on the brand extension of its Xbox game console system to change that perception. Microsoft is relying on diversification to generate revenue by selling new products to new market segments. The marketing environment of Microsoft targets numerous segments of the population in many countries through advertisements of its Xbox. Microsoft, the most successful operating system company in the world is using its innovations to take over the machine gaming market. Sony and Nintendo have been the gaming powerhouses for many years now, but are now starting to become overshadowed by the success of Microsoft's Xbox. Teenage boys have been the targets of these companies ever since the gaming industry started. Microsoft is using a new strategy where they target consumers of all ages and sexes. While other companies continue to stay in the young kids and teenage market, Xbox is revolutionizing the target market of gaming systems. They are designing games for all different kinds of audiences. Microsoft is using the prior knowledge they have in creating computer software to develop games and additional devices ...