This document discusses a case study about Codemasters, a British video game developer and publisher. It provides background information on Codemasters, established in 1986, and their focus on sports simulator games. It then describes a scenario where Codemasters launched budget games to reduce piracy in 1980. While games like Dizzy series and stimulator series were hits, profits were low due to the low price. To increase profits, Bruce Eversis, the marketing head, decided to raise prices of games from €1.99 to €2.99. Despite the price increase, market share and profits increased for Codemasters due to advertisements about the price rise in gaming magazines. Questions related to the case study on demand, elasticity, and

1. Microeconomics
Case study no-3
IBS Bangalore 2018-20 JAY TIWARI 18BSP2375
KANNAN 18BSP2389
MAHENDRA 18BSP2387
HIMANSHU 18BSP2369
HARISH G 18BSP2351
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2. PRICING
GAME BY A
GAME MAKER.
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3. Things you
need to be
familiar with
to understand
the case !!
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4. Video games
industries.
 The video game
industries (refers to as
interactive
entertainment
industries) is the
economic sector
involved with the
development ,
marketing and sales of
video game
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6. CODEMASTERS
Codemasters software company ltd or
codemasters is a British video game
developer and publisher founded by
David Darling and his brother Richard in
1986
Codemasters is one of the oldests
surviving British game studios founded
in 1986 by Richards and David Darling
Codemasters established themselvsin the
growing ZX Spectrum market mostly
with action games that requires the
players to solve simple puzzles by
combining different objects such as
Dizzy series.
They were famous for releasing a long
series of “simulator” games mostly
sports simulators(such as Pro boxing
simulator)
On 9TH June 2013,Reliance Big
Entertainment has increased its stock in
Codemasters from 50% to 60.41%
making Reliance the majority owner
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7. LAW OF DEMAND
 The law of demand states that other factors being
constant (citrus peribus), price and quantity demand
of any good and service are inversely related to each
other. When the price of a product increases, the
demand for the same product will fall.
 The chart beside depicts the low of demand using a
demand curve, which is always downward sloping.
 diagram shows the demand curve which is downward
sloping. Clearly when the price of the commodity
increases from price p3 to p2, then its quantity
demand comes down from Q3 to Q2 and then to Q3
and vice versa.
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8. Price
Elasticity
of
Demand
The variation in quantity demanded in response to a
variation in price is called the price elasticity of demand.
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9. Degree of
Price
Elasticity
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10. Case
 .
In 1980, game industries
launch budges games to
as reduce piracy
“Bruce Eversis”
marketing incharged at a
new publisher of
CODEMASTERS.
€1.99
DIZZY series and
STIMULATOR series were
hit but due to low price
profit is less.
In oreder to increase the
profit of company
BRUCE Eversis use a
strategy
Company announce
their price was going up
to €2.99. After a month
Advertisement in
“Sinclair” magazine!!!
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11. The console were available at old price.
Price rise …
Market share hike
Increase their profit and Codemasters no.1 again.
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12. Questions related to Case Study
 1. Do you think the games in this case present an exception to law of
demand or not? Give logic in support of your answer.
 A1. The law of demands stands in the case of “Ceteris Paribus”, in case
other variable are aren’t constant so we have another situations as
mentioned in graph.
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13.  2. On the basis of the case can it be concluded that demand for the games
was not elastic to price rather than the some other variables were
important? If yes, then identify the other variables.
 A. Yes. In the case factors like Advertisement was mostly responsible to
reduce the elasticity of demand.
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14.  3. The case present an interesting to consumer behaviour. Discuss.
 A. As per the case consumers preference increased due to nice
advertisement. Consumer Behaviour depends on factors like atmospheric
and situational influences, time. The science behind shopping, Shopping
habits, individual likes and dislikes based on certain feelings etc.
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