Concept explainers
Case summary:
The case deals with the use of game theory in video game console industry. Company N, Company S, and Company M have been going head-to-head-to-head in the gaming industry. These three game manufacturers own 100 percent of the market share in the gaming industry.
The price range of the games manufactured by all the three companies is $250 to $300. Video gamers are loyal to their brand. However, Company S and Company M spend large amounts on advertising and promotional activities. Company O is started by Person J in 2013. However, the product was pulled from the market in 2015 due to limited capacity to produce and only a few original games
To determine: The degree of competition that describes the market of the game console.
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