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Entering the Economic Models of Game Console Manufacturers

Author

Listed:
  • Nabyla DAIDJ

    (Telecom & Management SudParis, Paris)

  • Thierry ISCKIA

    (Telecom & Management SudParis, Paris)

Abstract

This paper deals with the video game console market. We are not interested here in portable consoles nor in PC games. Our work focuses on the role of core competencies in console wars, analyzing the way these competencies are activated within the firms' business models. The home console market also exhibits crossed network externalities, which requires console manufacturers the ability to conciliate the interests of both developers and gamers. From a strategic point of view, core competencies are closely related with market performance. Today, Sony's and Microsoft's business models are quite similar. However, Microsoft and Sony remain far behind Nintendo and its Wii, which suggests that core competencies do not discriminate on performance as much as the positioning choices made upstream when the strategy is crafted. The link between core competencies, economic model and strategy is at the heart of this study.

Suggested Citation

  • Nabyla DAIDJ & Thierry ISCKIA, 2009. "Entering the Economic Models of Game Console Manufacturers," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(73), pages 23-42, 1st quart.
    • Handle: RePEc:idt:journl:cs7301
    as

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    File URL: http://repec.idate.org/RePEc/idt/journl/CS7301/CS73_DAIDJ_ISCKIA.pdf
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    References listed on IDEAS

    as
    1. Carliss Y. Baldwin & Kim B. Clark, 2000. "Design Rules, Volume 1: The Power of Modularity," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262024667, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Thierry ISCKIA & Denis LESCOP, 2015. "Strategizing in Platform-based ecosystems: Leveraging Core Processes for Continuous Innovation," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(99), pages 91-111, 3rd quart.
    2. Peters, Frank, 2018. "The business of video games is a multi-player game : Essays on governance choices and performance in a two-sided market in the cultural industries," Other publications TiSEM 886b3148-4bbb-4ea4-b666-0, Tilburg University, School of Economics and Management.
    3. Marie CARPENTER & Nabyla DAIDJ & Christina MORENO, 2014. "Game Console Manufacturers: the End of Sustainable Competitive Advantage?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 39-60, 2nd quart.
    4. Hung Sun & Chìn-Chun Chen, 2021. "Well-Designed Teaching Examples Influence the Outcome of Technology Acceptance: The Example of Next-Generation Art Process Learning," Sustainability, MDPI, vol. 13(23), pages 1-17, November.
    5. Patrycja Klimas & Wojciech Czakon, 2018. "Organizational innovativeness and coopetition: a study of video game developers," Review of Managerial Science, Springer, vol. 12(2), pages 469-497, March.

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    More about this item

    Keywords

    video game console; business model; core competencies; two-sided market; platform.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media

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