Law of supply and demand
Monica Perez
Period 3
MT2 Make Up
Law of supply and demand: Sony, Nintendo, and Microsoft
Many big industries now focus on the production of the best product/services for the people and other companies. Industries such as Sony, Microsoft, and Nintendo have developed new consoles ranging from prices of $499.99 to $199.99. But how does the law of supply and demand affect their pricing? Also are these products elastic and how many substitutes are available? The Sony, Microsoft, and Nintendo industries set their prices based on the new features the product offers. For example the Play Station 4 has many features such as a built in share button that can share videos and images with others as well as better graphics and faster loading time. Also the company may be hard to copy or remake and the advertisement used for this product may add to the price. With their products, there are the complementary goods along with them such as headphones, games, or cameras. Despite the complementary goods a whole console still comes with only one game controller because if they included more than one than the price of the console could rise and it could cost the company money. Also the company can use this to their advantage to make more money in selling the controllers separately. For Microsoft Companies the demand for their products has increased especially for their Xbox game console that has sold 7.4 million as well as the other devices produced and consumer revenue that makes a total of $11.91 billion. Also their commercial revenue increased 10%, reaching $12.67 billion. On the other hand Sony products such as digital cameras, Play Station councils, and LCD TV decreased in demand making it hard to keep up with their competitors. But they are still making some profit from their movie business and their Mobil phones. Also foreign trade is helping Sony with profits and the shares as well. The release of the new Play Station 4 is what really helped Sony in demand but not in
Period 3
MT2 Make Up
Law of supply and demand: Sony, Nintendo, and Microsoft
Many big industries now focus on the production of the best product/services for the people and other companies. Industries such as Sony, Microsoft, and Nintendo have developed new consoles ranging from prices of $499.99 to $199.99. But how does the law of supply and demand affect their pricing? Also are these products elastic and how many substitutes are available? The Sony, Microsoft, and Nintendo industries set their prices based on the new features the product offers. For example the Play Station 4 has many features such as a built in share button that can share videos and images with others as well as better graphics and faster loading time. Also the company may be hard to copy or remake and the advertisement used for this product may add to the price. With their products, there are the complementary goods along with them such as headphones, games, or cameras. Despite the complementary goods a whole console still comes with only one game controller because if they included more than one than the price of the console could rise and it could cost the company money. Also the company can use this to their advantage to make more money in selling the controllers separately. For Microsoft Companies the demand for their products has increased especially for their Xbox game console that has sold 7.4 million as well as the other devices produced and consumer revenue that makes a total of $11.91 billion. Also their commercial revenue increased 10%, reaching $12.67 billion. On the other hand Sony products such as digital cameras, Play Station councils, and LCD TV decreased in demand making it hard to keep up with their competitors. But they are still making some profit from their movie business and their Mobil phones. Also foreign trade is helping Sony with profits and the shares as well. The release of the new Play Station 4 is what really helped Sony in demand but not in