Question: Although I had different goals in round one, two, and three I was able to execute a similar strategy that over the course of 10
Although I had different goals in round one, two, and three I was able to execute a similar strategy that over the course of 10 years gave me 99% market control and maximized return. The strategy starts at 150 dollars per console 2 games subsidized and 10% royalty rate. This first year results in negative net income but increases the market share to 57-43 split in our favor while the installed base is 60-40 split in our favor. Year 2 we see the price drop to 140 dollars and the games subsidized from 2 down to 1. This did not have a big impact on any key metrics other than gaining a better net income (still negative) and grabbing a few extra percentages of the market share. Year 3 and 4 our big years for the company because they are the last years for the company to have negative net income. The price per unit jumps from 125 to 140, we do not subsidize any games, and the royalty is down to 8%. Our market share climbs to a 75-25 split in our favor as in year four our company does 2x the sales revenue of our competitor. Year 5
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