In June 2013, Microsoft announced that its new Xbox One video game console would have a price

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In June 2013, Microsoft announced that its new Xbox One video game console would have a price of $499. Sony then announced that its new PlayStation 4 video game console would have a price of $399. An article on the event where Microsoft introduced the new console noted that the Microsoft spokesperson "started by showing off features like live-television technology and the ability to video-chat through its Skype service." The article goes on to say that not until nearly halfway through the presentation did the Microsoft spokesperson mention the new games the console could play.
a. Why in announcing a new video game console would Microsoft focus its presentation on features of the console other than its ability to play games?
b. Was it an advantage to Sony that Microsoft announced the price of the Xbox One before Sony announced the price of the PlayStation 4? Briefly explain.
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Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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