Video Game Consoles Are Routinely Sold Below Cost, and Games

question 169

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.

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Definitions:

Red Scare

Periods of intense fear of communism and radical political agitation in the United States, particularly prevalent after both World Wars.

Antiradicalism

opposition to radical movements, ideologies or persons, often in the context of politics, where conservative segments of society reject progressive or revolutionary changes.

Immediate Aftermath

The period immediately following an event, characterized by reactions, consequences, and initial responses to what has occurred.

League of Nations

An international organization founded after World War I to promote peace and cooperation among countries, a precursor to the United Nations.