Oligopoly In Video Game Consoles

705 Words 3 Pages
Looking into differentiated oligopoly. First, we will look to see what the characteristics are of this type of company or companies. We look into what and who made the differentiation occur. Then whether the decision to differentiate was a good move or not. We will be looking at video game consoles. The characteristics of oligopoly are there are few of them, 4 or less. The product they have is standardized, differentiated. Entry into the business is impeded. They have market power. The firms do not use marginal cost pricing. There is a chance for collusion, price leadership and price wars. While prices are high, market production is low. In the long run profit is greater than normal. That is the list of several characteristics of on oligopoly. In the video game consoles there is only three companies that produce this product. They are Nintendo, Microsoft, and Sony. They also have a differentiated product line. It is very hard to gain entry into this business. They have market power because they are the only three. When one makes a new product it won’t be long before the others have it also. The one who comes out with the new product first does not mean that they have the power of the market. Sometimes coming out with a new product just gives the other businesses something to work off of. When video …show more content…
First, the WII system made by Nintendo. It has a slender console and the remotes are easy to hold, they also cause the person to get up and move along with the game. They also have a board to were you could exercise with it. Trying to cause more action in people’s lives. This was the first game console that came out to have the interaction for the player to be moving. They started a new thing and in some ways it is awesome that they did. At least if someone is playing a game they can also be up and moving. That is how this differentiation really

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