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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
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    File URL: http://repec.idate.org/RePEc/idt/journl/CS7301/CS73_DAIDJ_ISCKIA.pdf
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    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. 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.
    3. repec:spr:rvmgts:v:12:y:2018:i:2:d:10.1007_s11846-017-0269-5 is not listed on IDEAS

    More about this item

    Keywords

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

    JEL classification:

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

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