Barco case discussion

Q2. Consider a hypothetical case where Sony was to charge $9,000 for its sweet 1270 super entropy projector (assuming that 1270s marginal cost is much lesser than $9000). Do you forecast that Sony can merge the data and the video segments (in other words, it lead attract a good chunk of customers, typically >30-40% of the share, in each of the two segments) if it was to charge the $9,000 cost for 1270? Give reasons for your answer. Next, go through the hypothetical case where Sony was to charge $15,000 for the 1270 projector. Do you think Sony would be able to merge the data and the graphics segments if it was to charge the $15,000 price for 1270? Give reasons for your answer.

Hypothetical case 1: Sony to sell 1270 for $9,000 in data and video segment

In 1989, Barco had its BD600S, with scan yard of 16 KHz and priced at $9,000, in the video segment. With Sonys products priced average 15% below Barcos, Sonys animate model in video segment would have been about(predicate) $7,650. Similarly, in the data segment Barco was selling BD600, with scan rate of 16-45 KHz and priced at $12,000, and Sonys projector would be expected to be priced at about $10,200.

In the video segment consumers do not prise additional scan rate as much and because most will not be willing to reach an extra $1,350 ($9,000-$7,650) for a scan rate of 75 KHz. They would elect a 16 KHz projector (optimum for video) for $7,650 over a 75 KHz projector (much higher than required for video) for $9,000. Merging is possible nevertheless if consumers in video segment are willing to commerce up and purchase the new projector with 75 KHz for $9,000. Also, Sony has an exist market share of 50% in the...

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