Magazine article from our research archive:

A Multigeneration Diffusion Model for IT-Intensive Game Consoles*

Abstract

The video game industry has attracted more and more attention not only from technology giants such as Microsoft but also from software developers and private investors. Information technology dictates how game console producers compete in the marketplace. Intensive IT competition in each console generation has shifted the market balance. Competitors jockey to position themselves as the first-mover within a generation or to wait and enter the market with cheaper and more advanced technologies. To capture the characteristics of IT-intensive products, we propose a multigeneration diffusion model that captures both cannibalization and competition effects. We apply the model to analyze ...

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