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The Substitution Effect of Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game Industry

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  • Shinichi Yamaguchi

    (International University of Japan)

  • Kotaro Iyanaga

    (Keio University)

  • Hirohide Sakaguchi

    (Keio University)

  • Tatsuo Tanaka

    (Keio University)

Abstract

In this paper, we discuss the substitution effects between mobile games and console games. We estimate such effects by a fixed-effect regression with instrumental variables using panel data of about 100,000 observations. The results showed that the substitution effects of playing smart devices on 3DS, Wii, and PSP were recognizable, but did not have significant effects on PS3, and the substitution effects on PSP were very small. Therefore, mobile games had a substitution effect on casual console games, or on console games in which the play situation resembled mobile games. In addition, the substitution effects were at most about 0.1. The substitution effects were small. Our results indicate that mobile games represent the pioneers in the new market of gaming at least during our observation period. But new games and traditional games will coexist for a while.

Suggested Citation

  • Shinichi Yamaguchi & Kotaro Iyanaga & Hirohide Sakaguchi & Tatsuo Tanaka, 2017. "The Substitution Effect of Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game Industry," The Review of Socionetwork Strategies, Springer, vol. 11(2), pages 95-110, December.
    • Handle: RePEc:spr:trosos:v:11:y:2017:i:2:d:10.1007_s12626-017-0014-1
    DOI: 10.1007/s12626-017-0014-1
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    References listed on IDEAS

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    Cited by:

    1. Shinichi Yamaguchi, 2021. "The effect of online C2C markets on new-product-purchasing behavior: an empirical analysis of Japanese selling apps," SN Business & Economics, Springer, vol. 1(1), pages 1-21, January.

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