The firm that blinked first, under the situation, when S’s PlayStation 2(PS2) dominated game console market from 1997 − 2003 with 123 million sold out units, after which 62 percent of market was with N’s Wii. In order to achieve this spectacular growth the prices has fallen continuously from launch price of $ 400 to $ 250 . S’s PS3 which was having a 20 percent market share has fallen from $ 1000 , then to $ 600 and finally to $ 399 has competition in an upscale segment of game console market against MS’s Xbox having an 18 percent market share and prices starting from $ 760 . There was an initial competition between Xbox and PS3 on add-ons. Now Brinkmanship pricing has broken out with Xbox discounting 360 from $ 760 with price ranges from $ 400 to $ 343 .

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Chapter 13A, Problem 2E

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To Describe: The firm that blinked first, under the situation, when S’s PlayStation 2(PS2) dominated game console market from 1997 − 2003 with 123 million sold out units, after which 62 percent of market was with N’s Wii. In order to achieve this spectacular growth the prices has fallen continuously from launch price of $400 to $250 . S’s PS3 which was having a 20 percent market share has fallen from $1000 , then to $600 and finally to $399 has competition in an upscale segment of game console market against MS’s Xbox having an 18 percent market share and prices starting from $760 . There was an initial competition between Xbox and PS3 on add-ons. Now Brinkmanship pricing has broken out with Xbox discounting 360 from $760 with price ranges from $400 to $343 .

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