Platform Wars: Simulating the Battle for Video Game Supremacy

DEVELOPER

John Sterman

ABSTRACT

In this live web-based simulation, participants play the role of senior management at a video game hardware platform producer, such as Sony, Nintendo, or Microsoft. Built around a companion case study describing the launch of Sony’s PlayStation 3, the simulation explores the dynamics of competition in multi-sided markets. In such markets, success depends not only on a product’s price and features, but also on how many people own it (a direct network externality) and on the number of games and applications available—that is, the size of the installed base of complementary products (an indirect network externality). Platform markets are increasingly common in settings other than video games, including computers, the Internet and e-commerce, and mobile telecommunications.

LEARNING OBJECTIVE

To allow students to experience interactively the challenges of strategic competition in multi-sided markets with significant network externalities and important complementary assets.

COULD BE TAUGHT IN THE FOLLOWING COURSE(S)

strategy, economics, technology strategy, system dynamics, and any course where the dynamics of strategic pricing behavior are relevant

RELATED MATERIALS

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​NOW AVAILABLE!                                                                                  

Corporate trainers, consultants, and educators from non-academic institutions can now access our simulations directly from our simulation partner, Forio, here.

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