Business, 08.10.2020 19:01 madelyngv97

When Sony released the PlayStation 4, it was reported that Sony was taking a loss of $60 on every PS4. However, Sony expected to make this up with sales of PS subscriptions and increased royalties from video games. Use the interdependence principle to help explain this strategy. The PS subscriptions allow PS4 owners to play their games online, receive new games monthly to download at no charge, and receive additional special discounts on other items. Therefore, the PS4 and PS subscriptions are in consumption. Decreasing the price of the PS4 will the demand for PS subscriptions. Sony expects that revenue from recurring PS4 will be larger than the loss in revenue from PS4 sales.

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