Technological Leapfrogging: Lessons from the U.S. Video Game Console Industry
@article{Schilling2003TechnologicalLL, title={Technological Leapfrogging: Lessons from the U.S. Video Game Console Industry}, author={Melissa A. Schilling}, journal={California Management Review}, year={2003}, volume={45}, 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…
187 Citations
Value Creation from Complements in Platform Markets: Studies on the Video Game Industry
- Business
- 2015
This dissertation is comprised of three empirical studies that examine the effect of platform-level variation on value creation strategies and market performance for providers of complementary goods…
Platform competition: Strategic trade‐offs in platform markets
- Computer Science
- 2013
The results suggest that platform competition is shaped by important strategic trade-offs and that the WTA approach will not be universally successful, and that a differentiation strategy based on distinctive positioning improves a platform's performance only when a platform system is highly distinctive relative to its rivals.
Entry into Platform-Based Markets
- Economics, Business
- 2012
This paper seeks to understand when an entrant with superior quality can successfully enter a platform-based market. We analyze a model where an entrant platform with superior quality competes with…
Platform adoption in system markets: The roles of preference heterogeneity and consumer expectations
- Business
- 2016
Resilient Values in Game Industry Formation: Institutional Perspective to the Finnish Context
- BusinessGames and Culture
- 2021
With the proliferation of technologies and digital platforms, contemporary game development firms’ value propositions have become more complex. While on a global scale a considerable share of the…
Building the Value of Next-Generation Platforms: The Paradox of Diminishing Returns
- Business
- 2018
Next-generation technology provides users with new, advanced functionality that often renders the past technology obsolete, opening a window of opportunity for challengers. Major benefits can accrue…
Generational Transitions in Platform Markets – The Role of Backward Compatibility
- Economics
- 2016
The introduction of a new product generation forces incumbents in platform markets to rebuild their installed base of complementary products. Using three different data sets on the U.S. market for…
Ambition in innovation: Vicarious learning in the nascent electric scooter market in Taiwan
- Business
- 2020
The Macro Problem of Microtransactions: The Self-Regulatory Challenges of Video Game Loot Boxes
- BusinessBusiness Horizons
- 2019
References
SHOWING 1-10 OF 10 REFERENCES
Establishing a standard: Competitive strategy and technological standards in winner-take-all industries
- Business
- 1997
Executive Overview The ability of a firm to establish its technology as an industry standard is a critical determinant of its long-term competitive position and success. Witness, for example, the…
The Incumbent's Curse? Incumbency, Size, and Radical Product Innovation
- Business, Economics
- 2000
A common perception in the field of innovation is that large, incumbent firms rarely introduce radical product innovations. Such firms tend to solidify their market positions with relatively…
Product Introduction with Network Externalities
- Economics
- 1992
The authors study the introduction of a new product in a market with network externalities. There is a common presumption that such markets exhibit excess inertia, i.e., that they are biased toward…
Network Externality, Compatibility Choice, and Planned Obsolescence
- Economics
- 1994
This paper attempts to provide a formal theory of planned obsolescence based on incompatible technologies in the presence of network externalities. The author explores how a monopolist's ability to…
Network externalities, technological progress, and the competition of market contracts
- Economics
- 1994
INCREASING RETURNS AND LOCK-IN BY HISTORICAL EVENTS
- Economics
- 1989
This paper examines the dynamics of allocation under increasing returns within a model where agents choose between technologies competing for adoption and where each technology improves as it gains…
Learning from Toys: Lessons in Managing Supply Chain Risk from the Toy Industry
- Business
- 2001
The toy industry faces relentless change and an unpredictable buying public, which creates immense challenges in anticipating best sellers and predicting volume. Like the high-technology industry,…
Successful Strategies for Product Rollovers
- Business
- 1998
Companies' financial strength and market position depend on successful new product introductions, which, in turn, depend on successful product rollovers. Given the low success rate of product…