Question Description
Assume that you are the Chief Game Officer for Wyatt Industries, producer of the famous Cones of Dunshire board game. Your responsibilities include deciding which games to pursue as opportunities for the company to produce. The company requires that overall, the game portfolio must have a rate of return of at least 12%. You have been lucky in your recent rolls of the dice in choosing games to support, and Wyatt currently has a 17% ROI. Owner Ben Wyatt has been pleased with your decisions and profitability, though his main focus is still on providing great games for families and friends to enjoy.
You have recently been approached by a game designer who promises to give you the next Game of the Year, for a significant investment, of course. The designer believes that for a $220,000 investment, Wyatt can purchase the rights to the game and invest in the necessary items to begin production. The designer believes there will be a 15% return on investment for this particular game.
What considerations should you take into account when deciding whether or not Wyatt will purchase this new game (hint: think outside the box/textbook)? What decision would you make and why? Would this change if any of the circumstances were different? If so, how and why?
Write one Paragraph responding
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