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The threat of new entrance is high. Because this is a profitable market that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by policies, the profit rate will fall towards a competitive level. Since 1972 there has been 9 different consoles built to keep up with competition. The demand for graphics and technology keeps demand high, keeping companies interested in creating the newest best game cube.
3. Bargaining power of buyers gives the customers ability to put the firm under pressure and it also affects the customer's sensitivity to price changes...
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