Abstract and Keywords
This article highlights the key features that distinguish the industrial organization of videogames from other similar hardware-software markets. The models of consumer and firm (both hardware and software) strategic behavior are then addressed. Videogame consoles sit squarely amidst the convergence battle between personal computers and other consumer electronic devices. Games developed for one console are not compatible with others. The pricing of hardware consoles has been the most developed area of research on platform strategy. It is noted that even retrospective analysis of the videogame market when all the players were known needed sophisticated modeling techniques to handle the industry's complexities, which include controlling for dynamic issues and accounting for consumer and software heterogeneity. The success and proliferation of videogames will continue to spawn broader questions and enhance the understanding of general networked industries.
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