Nintendo built a security chip into its game console hardware and then licensed the right to develop games to outside firms.These firms paid a royalty to Nintendo for each copy of the game sold.This is an example of Nintendo using ________ products.
A) substitute
B) complement
C) unrelated
D) differentiated

Question

Quizplus · Accepted Answer

The success of Nintendo in the early 1990s was a result of its ability to manage its relationship with its complementors. Nintendo built a security chip into the hardware and then licensed the right to develop games to outside firms. These firms paid a royalty to Nintendo for each copy of the game sold. The royalty revenue enabled Nintendo to sell game consoles at close to their cost, thereby increasing their market share, which, in turn, caused more games to be sold and more royalties to be generated.

Nintendo Built a Security Chip into Its Game Console Hardware