Final answer:
Video game companies do pay royalties to console producers for each game sold, similar to how playwrights receive royalties for performances.
Step-by-step explanation:
The statement is True. Companies that develop video games typically pay a royalty to the console manufacturers for each game sold. This business model is similar to the way playwrights receive royalties for each performance of their plays. However, unlike playwrights who may not be able to make a living solely on these royalties, video game developers often operate within a larger, more profitable market. For instance, if a game is developed for a popular console, the developer agrees to pay a certain percentage of the game's sale price in royalties to the console's producer. This allows console producers to benefit from every game sold, not just the ones they produce in-house.