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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Definitions:

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behaviors, such as reinforcing desirable behaviors and reducing unwanted ones.

Behavioral Activation

A therapeutic approach that seeks to help individuals engage more in activities they find meaningful or enjoyable to improve mood and reduce depression.

Positive Punishment

An operant conditioning concept where an undesirable behavior is followed by an unpleasant stimulus to decrease the behavior's occurrence.

Bobo Doll

An experiment that demonstrated how children can learn aggressive behaviors through the observation of adult behavior.