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Fact 10.5.1
Two leading design firms, Astro Studios of San Francisco and Hers Experimental Design Laboratory, Inc. of Osaka, Japan, worked with Microsoft to design the Xbox 360 video game console. IBM, ATI, and SiS designed the Xbox 360's hardware. Three firms, Flextronics, Wistron, and Celestica, manufacture the Xbox 360 at their plants in China and Taiwan.
-Refer to Fact 10.5.1. Microsoft works with a large number of other firms to bring the Xbox to market, rather than performing all the required tasks at its headquarters in Seattle because
A)Microsoft wants to control as many firms as possible and by sending Xbox design and production to other firms, Microsoft gains control in a new market.
B)this is the method of production with the lowest cost.
C)Microsoft employees do not have the expertise to perform the necessary tasks.
D)Microsoft already dominates too many markets and the government requires that other firms coordinate Xbox design and production.
E)All of the above

Question

Quizplus · Accepted Answer

Microsoft likely works with other firms to design and manufacture the Xbox 360 as it is a cost-effective method of production. It would be expensive for Microsoft to perform all the necessary tasks in-house, and outsourcing allows them to take advantage of the expertise and resources of other companies. The other options presented in the question do not have any factual basis.

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