Customers who owned Nintendo's 8-bit video game console were unable to play the same games on the firm's new 16-bit Super Nintendo system. There was little incentive for existing Nintendo fans to stick with the firm. In this case, Nintendo's new offering suffered from a lack of:
A) switching costs.
B) backward compatibility.
C) staying power.
D) effective pricing.
E) network effects.

Question

Quizplus · Accepted Answer

Backward compatibility refers to the ability of a system to use or run programs and peripherals from an older system. In this case, the inability of the Super Nintendo system to play games from the 8-bit console indicates a lack of backward compatibility.

Customers Who Owned Nintendo's 8-Bit Video Game Console Were Unable