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Question 2 of 15 > Macmillan Learning Resources Submit All Demand: Thinking Like a Buyer-End of Chapter Problem When Sony released the PlayStation 5, it was reported that Sony was taking a loss of $60 on every console. However, Sony expected to make this up with sales of PS+ subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy. The PS+ subscriptions allow PS5 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS5 and PS+ subscriptions are in consumption. Decreasing the price of the PS5 will the demand for PS+ subscriptions. Sony expects that revenue from recurring PS+ subscriptions will be larger than the loss in revenue from PS5 sales.

Question 2 of 15 > Macmillan Learning Resources Submit All Demand: Thinking Like a Buyer-End of Chapter Problem When Sony released the PlayStation 5, it was reported that Sony was taking a loss of $60 on every console. However, Sony expected to make this up with sales of PS+ subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy. The PS+ subscriptions allow PS5 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS5 and PS+ subscriptions are in consumption. Decreasing the price of the PS5 will the demand for PS+ subscriptions. Sony expects that revenue from recurring PS+ subscriptions will be larger than the loss in revenue from PS5 sales.

Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter23: Managing Vertical Relationships
Section: Chapter Questions
Problem 1MC
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Question 2 of 15 > Macmillan Learning Resources Submit All Demand: Thinking Like a Buyer-End of Chapter Problem When Sony released the PlayStation 5, it was reported that Sony was taking a loss of $60 on every console. However, Sony expected to make this up with sales of PS+ subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy. The PS+ subscriptions allow PS5 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS5 and PS+ subscriptions are in consumption. Decreasing the price of the PS5 will the demand for PS+ subscriptions. Sony expects that revenue from recurring PS+ subscriptions will be larger than the loss in revenue from PS5 sales.
Transcribed Image Text:Question 2 of 15 > Macmillan Learning Resources Submit All Demand: Thinking Like a Buyer-End of Chapter Problem When Sony released the PlayStation 5, it was reported that Sony was taking a loss of $60 on every console. However, Sony expected to make this up with sales of PS+ subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy. The PS+ subscriptions allow PS5 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS5 and PS+ subscriptions are in consumption. Decreasing the price of the PS5 will the demand for PS+ subscriptions. Sony expects that revenue from recurring PS+ subscriptions will be larger than the loss in revenue from PS5 sales.
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