Software multihoming to distal markets: Evidence of cannibalization and complementarity in the video game console industry

Nico Wiegand (), Yuri Peers () and Alexander Bleier ()
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Nico Wiegand: Vrije Universiteit Amsterdam
Yuri Peers: Vrije Universiteit Amsterdam
Alexander Bleier: Frankfurt School of Finance & Management

Journal of the Academy of Marketing Science, 2023, vol. 51, issue 2, No 7, 393-417

Abstract: Abstract Steady software supply is a crucial driver of platform sales. While publishers benefit from releasing software across multiple platforms to tap a greater market, platform manufacturers often seek exclusive release to differentiate from competitors. Research has examined such software multihoming across competing platforms of the same technology generation (i.e., the proximal market); however, publishers increasingly multihome software to platforms in distal markets. In the video game console industry, these include previous-generation consoles, handhelds, or mobile devices. This study investigates multihoming to distal markets in the seventh and eighth game console generations. Whereas multihoming to previous-generation consoles cannibalizes focal console sales, multihoming to mobile devices exerts complementary effects. Software quality and console age moderate these relationships, with negative spillovers from multihoming to previous-generation consoles being rooted in lower-quality games and games released later in the console’s lifecycle. By contrast, multihoming to mobile devices is most beneficial early on.

Keywords: Software multihoming; Digital platforms; Hedonic consumption; Immersion; Entertainment marketing (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s11747-022-00893-4

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