John wants to buy WWE SmackDown vs. Raw, a new video game marketed for the Xbox 360, a Microsoft and WWE joint venture. The game costs $65 and will only play on an Xbox 360 game console, which will cost him about $450. If he commits to buying the Xbox, it is unlikely he will buy anything but Xbox games due to:

John wants to buy WWE SmackDown vs. Raw, a new video game marketed for the Xbox 360, a Microsoft and WWE joint venture. The game costs $65 and will only play on an Xbox 360 game console, which will cost him about $450. If he commits to buying the Xbox, it is unlikely he will buy anything but Xbox games due to:

John wants to buy WWE SmackDown vs. Raw, a new video game marketed for the Xbox 360, a Microsoft and WWE joint venture. The game costs $65 and will only play on an Xbox 360 game console, which will cost him about $450. If he commits to buying the Xbox, it is unlikely he will buy anything but Xbox games due to:



A.

capital requirements.


B.

access to distributors.


C.

switching costs.


D.

product differentiation.



Answer: C


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