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Question 1 & 2 Case Study 2

Atari followed an innovation strategy of developing home use video game consoles in the 1970s which brought video games to a new medium of play. Atari's business model was to sell its console at a low cost and make money from game cartridge sales using a razor/blade business model. This influential model of subsidizing the hardware through software sales became common practice in the video game industry.

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275 views1 page

Question 1 & 2 Case Study 2

Atari followed an innovation strategy of developing home use video game consoles in the 1970s which brought video games to a new medium of play. Atari's business model was to sell its console at a low cost and make money from game cartridge sales using a razor/blade business model. This influential model of subsidizing the hardware through software sales became common practice in the video game industry.

Uploaded by

amalazham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1. Which innovation strategy did Atari follow in the 1970s?

Atari was the developer of video games, which brought the console as a media to a
new way of playing video games and Atari first went to the home use video game
console.

2. What was Atari’s business model? How influential has this model been?
It was a classical application of the market paradigm for shaving and razor blades.
Atari sold this console at a low cost that hardly paid for it and made his money from
the card draw for the title. The case displays the highest markings in these gamecubes.
They sold less than one third of the production for $30.

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