The 'Time Traveller' computer game has been developed by Blizzard Entertainment Inc. The life cycle of new computer games tends to be very short due to the pace of change in the industry. Should the company adopt a price skimming strategy for the launch of this new game? Alternatively, is it more important to carve out a substantial market share to begin with, by using penetration pricing, and then develop improved versions to maintain consumer interest? The decision has to be taken very quickly - the promotional material is being developed - and there would only be one chance to get the price right.

1. Evaluate the impact that knowledge of the game's product life cycle might have on the price charged for it after launch.

2. Recommend whether an even higher price than this should be charged in order to adopt a skimming strategy for this new product.