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

Shinichi Yamaguchi (), Kotaro Iyanaga (), Hirohide Sakaguchi () and Tatsuo Tanaka ()
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Shinichi Yamaguchi: International University of Japan
Kotaro Iyanaga: Keio University
Hirohide Sakaguchi: Keio University
Tatsuo Tanaka: Keio University

The Review of Socionetwork Strategies, 2017, vol. 11, issue 2, 95-110

Abstract: 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.

Keywords: Mobile games; Console games; Gaming industry; Substitution effect; Empirical analysis; Panel data; Instrumental variables method (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s12626-017-0014-1

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