1. Based on what you have learned in this chapter, why would a company such as Microsoft develop, produce, and sell a product at a loss? Do you think this is a deliberate strategy? If so, is it rational? Explain your answer.
2. Do you think demographic trends are likely to support or hinder the market for this type of product? More broadly, what do you see as opportunities and threats in this market? Explain your answer.
3. From a resource-based perspective, do you think Microsoft’s core competencies are likely to give the company a competitive advantage in the game consoles market in the future? Explain your answer.