Course materials

1. Business management: simulation | Business Management | Arizona
Board of Regents
Deadline 5 hours1 PAGECase study: https://mitsloan.mit.edu/sites/default/files/2020-
03/Sony%27s%20Battle%20for%20Video%20Game%20Supremacy.IC__0.pdfPlay as an
individualUse any code to log inTo begin, read the simulation case study and access the
simulation at https://forio.com/simulate/mit/video-game/simulation/index.html (Links to
an external site.) You will make four rounds of decisions for this case study. Round 1 = Year
1; Round 2= Year 2; Round 3= Year 5; and Round 4=Year 10 (end). Round 1: Read the case
study. Make decisions for the first year. Be sure to consider the amount of competition and
where this product in its product life cycle (PLC). Based off the information in the case
study, identify an initial Console price ($/unit) This is the price that will be charged to
consumers to buy the console. The number of game titles to subsidize 49million ($/year)
This is the number of games that the console maker will produce specifically for their
console in order to promote their console. Royalty paid by game makers (% of
revenues/year). The royalty that game makers (i.e. 3rd parties) must pay the console maker
in order to have access to their console player. Input these numbers into the simulation.
Next, copy your income statement and dashboard and paste into an excel spreadsheet or
your word document. Analyze these two statements. Specifically, note your market share,
revenues, net income, and cumulative profit. In your write-up identify why you chose the
price, number of game titles and royalty. Based off your analysis of the analytics provided
by the simulation, what changes will you make in round 2. Provide rationale for these
changes. (i.e. Do you need to charge a higher price for the console? Do you need to subsidize
more games, etc.)? How does the competition impact your decision? How does the stage of
the product lifecycle impact your decisions for the next round? Round 2, 3 and 4: Based on
your analysis of your previous round(s) results, modify your console price, game titles to
subsidize and royalty paid by game makers. Again, copy your income statement and
dashboard and paste into your word document or a spreadsheet. Specifically, note your
market share, revenues, net income, and cumulative profit. Based off your analysis of the
analytics provided by the simulation, what changes will you make in the next round.
Provide rationale for these changes. (i.e. Do you need to charge a higher price for the
console? Do you need to subsidize more games, etc.)? How does the competition impact
your decision? How does the stage of the product lifecycle impact your decisions for the
next round? Complete this exercise for rounds 2, 3, and 4. Conclusion: After the final round,

2. report your final income statement. Provide a one or two paragraph reflection on what you
learned from this simulation. You may “play” the simulation as many times as you would
like in order to achieve the best results (and to learn from the simulation)! Your final write-
up should contain the following, and will be graded as follows: Title page (1 point)
Introduction (2 points) Round 1 – decisions, rationale, evaluation of results and
recommendations for the next round (9 points) Round 2 – decisions, rationale, evaluation of
results and recommendations for the next round (9 points) Round 3 – decisions, rationale,
evaluation of results and recommendations for the next round (9 points) Round 4 –
decisions, rationale, and evaluation of results (8 points) Conclusion and reflection (8 points)
Proper grammar and spelling (4 points)