Technological Leapfrogging: Lessons from the U.S. Video Game Console Industry

  title={Technological Leapfrogging: Lessons from the U.S. Video Game Console Industry},
  author={Melissa A. Schilling},
  journal={California Management Review},
  pages={32 - 6}
In industries characterized by network externalities, the self-reinforcing effects of installed base and the availability of complementary goods can lead to a single (or few) firm(s) controlling nearly all of the market share in a product category. A new entrant may attempt to displace the incumbent standard by introducing a radically improved technology, "leapfrogging" the current generation. However, a technological advantage alone is often not enough. To lure customers away from the existing… 

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