Danielle

Ok then, let's take a look at your two proposals.

Danielle

How would you characterize these two plans? What are the key points in terms of their returns?

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Investing in the innovation that fixes cybersickness achieves breakeven in its second year, whereas the new product line takes longer to earn back its investment. Creating a new line of games requires more overhead in staff and marketing, and game design takes longer than upgrading our hardware. But if everything goes well, it will earn more revenue. It's a classic high risk, high reward.

Athough the innovation is lower risk, not doing the games would be a stop$-$to$-$market mistake. Investing in the new product line mitigates your risk because you have a new revenue channel, and therefore twice the opportunity for success.

Fixing cybersickness is the obvious course of action. It is a sure bet, whereas the sales numbers for the new line of games are inflated.

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