Read the case (10-page pdf file), "A Declaration of War: A Case of Competition in the Video Game Industry.", and write a discussion (between 100-150 words) based on the following questions.
Does VGE set its transfer prices (i.e., royalty payments) more on market prices, costs, or some negotiated price? Explain using details from the case. Then, list one other issue the CFO should consider with regard to the structure of the royalty payments from VGE to Digital Creations.
Quality of Discussion
1.Discussion & replies must demonstrate the understanding of the topic. Connections between the current topic, readings, and discussion should be exhibited.
2.Discuss at a critical level. Critical discussion includes your opinion of items mentioned, but also includes the reasons you hold that opinion, and why it may be inconsistent or consistent with what you have learned. Justify your reasoning with facts. How does what you’re presenting affect present and future situations?