Video Game Consoles Are Routinely Sold Below Cost, and Games

Multiple Choice

Video game consoles are routinely sold below cost, and games are sold above cost. What would happen if someone figured out how to use the consoles as cost-effective, general-purpose, nongaming computers?

A) People would buy the consoles as low-cost computers, never buy any games, and the console-maker would lose money.
B) The console maker would make more money since it would sell more consoles.
C) The console maker would lower the price on its consoles to sell more of them to a more elastic market.
D) The price of games would rise.