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The Video Game Console Market Offers Important Lessons for the Strategist

Question 57

Multiple Choice

The video game console market offers important lessons for the strategist. The video game console market is a network market in which Sony's PlayStation 2 (PS2) dominated over Microsoft's Xbox offering. This has been possible due to:


A) the low pricing of Xbox which eroded users' confidence in the product.
B) game developers favoring PS2 for its larger user base obtained because the PS2 was launched months before the Xbox.
C) the presence of several cheap, rival imitations which ate into Xbox's market share.
D) PS2's technical superiority over the Xbox.
E) the straddling strategy adopted by Microsoft to expand in both video game and DVD player markets.

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