Question

The market for video game consoles is oligopolistic, with three major sellers (Microsoft, Nintendo, and Sony)...

The market for video game consoles is oligopolistic, with three major sellers (Microsoft, Nintendo, and Sony) dominating the market. Suppose that all of these sellers carry out major marketing campaigns that increase the extent to which their products are differentiated from one another (but do not increase the overall demand for video game consoles). How will this affect the amount of market power possessed by these oligopolists?

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Depending on most sucessfull marketing campaign in the market the companies who are differentiating themselves from each other will develop the companies as monopoly and this will considerably increase the market power of the firms but oligopoly will stop existing in the market but there will be several monopoly firms having there own market shares.

This is because the advertising will make the firms more differentiated from each other and develop as a seperate market with inealstic demand for their own products.  

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