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Platform strategy of video game software in Japan, 1984–1994: theory and evidence

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  • Masayoshi Maruyama
  • Kenichi Ohkita

Abstract

This paper analyzes a model of platform competition in markets of system products composed of hardware and complementary software, with a specific focus on exclusive contracting. When hardware products are strongly differentiated, or when consumers value the marginal benefit of additional software variety highly, we find that, in equilibrium, hardware firms will engage in exclusive contracting of software development. This finding is strongly supported by our empirical results in the Japanese home video game industry, dominated by Nintendo from 1984 to 1994. Copyright (C) 2010 John Wiley & Sons, Ltd.

Suggested Citation

  • Masayoshi Maruyama & Kenichi Ohkita, 2011. "Platform strategy of video game software in Japan, 1984–1994: theory and evidence," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 105-118, March.
    • Handle: RePEc:wly:mgtdec:v:32:y:2011:i:2:p:105-118
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    File URL: http://hdl.handle.net/10.1002/mde.1521
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    Cited by:

    1. Evgeny V. Popov & Sergey V. Kulpin, 2014. "Factor analysis of information products competition," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 10(2), pages 21-32.
    2. Maruyama, Masayoshi & Flath, David & Minamikawa, Kazumitsu & Ohkita, Kenichi & Zennyo, Yusuke, 2015. "Platform selection by software developers: Theory and evidence," Journal of the Japanese and International Economies, Elsevier, vol. 38(C), pages 282-303.

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