Platform Competition in the Video Game Console Industry: Impacts of Software Quality and Exclusivity on Market Share

Haeyop Song, Jaemin Jung and Daegon Cho

Journal of Media Economics, 2017, vol. 30, issue 3, 99-120

Abstract: This study examines impacts of the complementary products on platform competition, in the context of video game consoles. Using 10-year panel data, the results demonstrate that high-quality software has a disproportionately significant effect on hardware demand. The high-quality exclusive software is an important factor affecting consumers’ utility, and it tends to be developed in hardware manufacturers’ vertically integrated subsidiaries. In addition, this study also identifies that high-quality multi-homing software plays a role in platform growth in a platform’s later stage.

Date: 2017
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DOI: 10.1080/08997764.2018.1449750

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