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V07-36

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V07-36 [#permalink]

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  95% (hard)

Question Stats:

46% (01:13) correct 54% (01:52) wrong based on 138 sessions

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If you go by the popularity of Gaming units, as of Jan 4th 2015, Sony’s PS4 sold 18.5 million units and reached 10.9 million PlayStation Plus subscribers, a growth of 37.9% from October 2014. Despite the massive growth, Sony’s PlayStation is behind Microsoft’s Xbox One, which in November 2014 accelerated its sales due to a $50 price cut, and a bundle of free games. On 28th January 2015, Spotify, the leading music subscription service announced an exclusive partnership with PS4, and offered digital music to 64 million PlayStation Network users. With the announcement, Feb 2015 saw a spike in sales for the PS4 units by 45%.
Which one of the following conclusions is valid for the above statements?


A. PS4, on itself, does not have the brand reach nor the mass following needed to overtake Microsoft’s Xbox One.
B. Demand for Microsoft’s Xbox One declined during Feb 2015
C. Bundling of services has increased the market share for Sony’s PS4
D. Price cut had a direct impact on sales of Gaming Units
E. Sales of Sony’s PS4 will overtake Microsoft’s Xbox One in 2015
[Reveal] Spoiler: OA

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Re V07-36 [#permalink]

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If you go by the popularity of Gaming units, as of Jan 4th 2015, Sony’s PS4 sold 18.5 million units and reached 10.9 million PlayStation Plus subscribers, a growth of 37.9% from October 2014. Despite the massive growth, Sony’s PlayStation is behind Microsoft’s Xbox One, which in November 2014 accelerated its sales due to a $50 price cut, and a bundle of free games. On 28th January 2015, Spotify, the leading music subscription service announced an exclusive partnership with PS4, and offered digital music to 64 million PlayStation Network users. With the announcement, Feb 2015 saw a spike in sales for the PS4 units by 45%.
Which one of the following conclusions is valid for the above statements?


A. PS4, on itself, does not have the brand reach nor the mass following needed to overtake Microsoft’s Xbox One.
B. Demand for Microsoft’s Xbox One declined during Feb 2015
C. Bundling of services has increased the market share for Sony’s PS4
D. Price cut had a direct impact on sales of Gaming Units
E. Sales of Sony’s PS4 will overtake Microsoft’s Xbox One in 2015

The portion " ....in November 2014 accelerated its sales due to a $50 price cut....." clearly indicates that the price cut had a positive impact on the sales of units. Hence D is correct. Option C is not correct since an increase in sales may not necessarily indicate a growth in market share. The market itself may have grown.

Answer: D
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Re: V07-36 [#permalink]

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New post 08 Aug 2015, 09:49
souvik101990 wrote:
If you go by the popularity of Gaming units, as of Jan 4th 2015, Sony’s PS4 sold 18.5 million units and reached 10.9 million PlayStation Plus subscribers, a growth of 37.9% from October 2014. Despite the massive growth, Sony’s PlayStation is behind Microsoft’s Xbox One, which in November 2014 accelerated its sales due to a $50 price cut, and a bundle of free games. On 28th January 2015, Spotify, the leading music subscription service announced an exclusive partnership with PS4, and offered digital music to 64 million PlayStation Network users. With the announcement, Feb 2015 saw a spike in sales for the PS4 units by 45%.

A. PS4, on itself, does not have the brand reach nor the mass following needed to overtake Microsoft’s Xbox One.
B. Demand for Microsoft’s Xbox One declined during Feb 2015
C. Bundling of services has increased the market share for Sony’s PS4
D. Price Cut had a direct impact on sales of Gaming Units
E. Price Cut had a direct impact on sales of Gaming Units


Hello souvik101990

This question has the same answers for D and E.
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Re: V07-36 [#permalink]

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New post 09 Aug 2015, 03:16
Hello,

Yep D and E are the same. Also, there is no question.
However, I did end up with C, even though it was one choice minus I had to reject. I responded to the question "Based on the information in the stem, what could be most safely inferred concerning the sales of PS4 and XB1"?
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Re: V07-36 [#permalink]

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New post 19 Aug 2015, 13:18
I think this is a poor-quality question. the main question stem is missing
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Re: V07-36 [#permalink]

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Re: V07-36 [#permalink]

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Growth of sales by 45% may not suggest it is a rise in market share. XBox's market share may also have grown thus possibly not allowing PS4's share to grow. Since we do not know how much XBox grew between Nov 14 and Feb 15, how is C correct?
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I think this is a poor-quality question and I don't agree with the explanation. The sales might increase, But the market share might not increase at all as the sale of microsoft XBOX could have also increased. Correct choice should be D.
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I think this is a poor-quality question and I don't agree with the explanation. Unless we know the relative increase/ decrease of XBox in Feb 2015, we cannot reliably claim that that PS4's market share has increased. Please edit this question or remove it from the tests.
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Agree with the comments above; there is no information to suggest an increase in market share. The most we can say is D.
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Re: V07-36 [#permalink]

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New post 01 Jan 2016, 06:33
Definitely a poor quality question. Answer is D as we do not know about sales of XBox or other gmaing units.
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I think this is a poor-quality question and I don't agree with the explanation. Growth in sales does not necessarily mean growth in market share.
I wouldn't automatically call the offer a "bundling of services." If the offer was made to previous customers it would just be a bonus offer, not a purchase bundle.
Additionally, from my understanding, you don't have to purchase a PS4 to be a PS subscriber/network user. You could theoretically have an increase in users but no change in market share.
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Re: V07-36 [#permalink]

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New post 06 Apr 2016, 06:31
I agree with Akanaiku
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Re: V07-36 [#permalink]

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New post 06 Apr 2016, 07:37
Ans choice C is a Might be case and not a Must be case. D looks like the only convincing answer
What if the Market itself has grown by 100% in that case the market share of sony might have come
down.
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New post 12 May 2016, 03:05
I think this is a poor-quality question. I don't agree with the answer. If the Market overall growth were greater than Sony´s growth in the same period, Sony would have lost mkt share.
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New post 13 May 2016, 14:04
MatrixMBA wrote:
I think this is a poor-quality question. I don't agree with the answer. If the Market overall growth were greater than Sony´s growth in the same period, Sony would have lost mkt share.


Thank you for pointing out. OA and OE have been changed accordingly.
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New post 19 Jul 2016, 10:44
Choice D states that Price cut had a direct impact on sales of Gaming Units but it didn't explicitly mention Xbox. And we don't know how price cut may have effected sales of PS4. So how can we comment on sales of gaming units?
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New post 20 Jul 2016, 10:43
Navinder wrote:
Choice D states that Price cut had a direct impact on sales of Gaming Units but it didn't explicitly mention Xbox. And we don't know how price cut may have effected sales of PS4. So how can we comment on sales of gaming units?


Option D is true because the price cut had impact on SOME gaming units. In order for option D to be true, it not required that the price cut necessarily affect ALL gaming units.
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sayantanc2k wrote:
Navinder wrote:
Choice D states that Price cut had a direct impact on sales of Gaming Units but it didn't explicitly mention Xbox. And we don't know how price cut may have effected sales of PS4. So how can we comment on sales of gaming units?


Option D is true because the price cut had impact on SOME gaming units. In order for option D to be true, it not required that the price cut necessarily affect ALL gaming units.


So, in a general case we consider statement is true for SOME unless it is mentioned for ALL?
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Navinder wrote:
sayantanc2k wrote:
Navinder wrote:
Choice D states that Price cut had a direct impact on sales of Gaming Units but it didn't explicitly mention Xbox. And we don't know how price cut may have effected sales of PS4. So how can we comment on sales of gaming units?


Option D is true because the price cut had impact on SOME gaming units. In order for option D to be true, it not required that the price cut necessarily affect ALL gaming units.


So, in a general case we consider statement is true for SOME unless it is mentioned for ALL?


No, not in all cases. The meaning needs to be considered with care. For example:

Cows are domestic animals ..... here the statement implies that ALL cows are domestic animals.

However for the subject question, consider this way:

A set S consists of two subsets P and Q. Something changed the subset P. A change in subset also implies a change in super-set because the super-set is no longer the same as a part of it has changed. Hence change in P implies a change in S.

Here gaming units= super-set S
Xbox = subset P
PS4 = subset Q
Re: V07-36   [#permalink] 21 Jul 2016, 02:06

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