Final answer:
The phenomenon where console owners prefer platforms with many games and developers prefer platforms with many users is known as Network effects. It's a virtuous cycle that increases a platform's value as more people use it. The correct option is B.
Step-by-step explanation:
The video game industry example where console owners are attracted to platforms with many games, and developers are drawn to platforms with a large user base, is an illustration of Network effects. This concept describes a circumstance where the value of a product or service increases as more people use it.
Consequently, a virtuous cycle is created: a greater number of users attract more developers, which in turn enhances the platform's appeal by increasing the number and variety of available games, thereby attracting even more users.