Entering the economic models of game console manufacturers

Nabyla Daidj () and Thierry Isckia ()
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Nabyla Daidj: IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], CEMANTIC - Centre d'Études et de recherches en Management et TIC - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris]
Thierry Isckia: IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], CEMANTIC - Centre d'Études et de recherches en Management et TIC - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris]

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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.

Keywords: Business model; Video game console; Core competencies; Two-sided market; Platform (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (5)

Published in Communications & stratégies, 2009, 73, pp.23-40

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00473055

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