IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v174y2022ics0040162521006430.html
   My bibliography  Save this article

Business model innovation in video-game consoles to face the threats of mobile gaming: Evidence from the case of Sony PlayStation

Author

Listed:
  • Lantano, Francesco
  • Petruzzelli, Antonio Messeni
  • Panniello, Umberto

Abstract

This paper investigates how videogame consoles have innovated their business model (BM) in response to the entrance of mobile gaming. Business Model Innovation (BMI) is widely recognized in management literature as a strategic tool that incumbent firms can leverage to face the competitive threat of new entrants. However, none of the previous work has addressed this topic for the context of videogame industry. With the aim of filling this gap, we explored the case of Sony PlayStation by adopting a qualitative approach. All the innovations that were identified were coded in terms of value creation and value capture mechanisms. We detected that the evolution of the Sony PlayStation's BM can be articulated in four phases where mechanisms typical of mobile games have been detected and incrementally integrated. Our findings were finally discussed to highlight novel insights about the innovations implemented by Sony, that can be beneficial for both scholars and practitioners. Indeed, this paper contributes to the academic debate in the field of BMI research as well as offers practical indications for managers and executives of incumbent firms that face the competition of new entrants in their industry.

Suggested Citation

  • Lantano, Francesco & Petruzzelli, Antonio Messeni & Panniello, Umberto, 2022. "Business model innovation in video-game consoles to face the threats of mobile gaming: Evidence from the case of Sony PlayStation," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
  • Handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006430
    DOI: 10.1016/j.techfore.2021.121210
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0040162521006430
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2021.121210?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, September.
    2. Battard, Nicolas & Mangematin, Vincent, 2013. "Idiosyncratic distances: Impact of mobile technology practices on role segmentation and integration," Technological Forecasting and Social Change, Elsevier, vol. 80(2), pages 231-242.
    3. Parick Lê & David Massé & Thomas Paris, 2013. "Technological change at the heart of the creative process: Insights From the Videogame Industry," Post-Print hal-02104479, HAL.
    4. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    5. Feijoo, Claudio & Gómez-Barroso, José-Luis & Aguado, Juan-Miguel & Ramos, Sergio, 2012. "Mobile gaming: Industry challenges and policy implications," Telecommunications Policy, Elsevier, vol. 36(3), pages 212-221.
    6. Thomas Paris & Lê Patrick & Massé David, 2013. " Technological Change at the Heart of the Creative Process: Insights From the Videogame Industry ," Post-Print halshs-00921155, HAL.
    7. Feng Zhu & Marco Iansiti, 2012. "Entry into platform‐based markets," Strategic Management Journal, Wiley Blackwell, vol. 33(1), pages 88-106, January.
    8. Helfat, Constance E. & Raubitschek, Ruth S., 2018. "Dynamic and integrative capabilities for profiting from innovation in digital platform-based ecosystems," Research Policy, Elsevier, vol. 47(8), pages 1391-1399.
    9. Daim, Tugrul & Justice, Jay & Hogaboam, Liliya & Mäkinen, Saku J. & Dedehayir, Ozgur, 2014. "Identifying and forecasting the reverse salient in video game consoles: A performance gap ratio comparative analysis," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 177-189.
    10. Egfjord, Kathrine Friis-Holm & Sund, Kristian J., 2020. "Do you see what I see? How differing perceptions of the environment can hinder radical business model innovation," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    11. Rong, Ke & Ren, Qun & Shi, Xianwei, 2018. "The determinants of network effects: Evidence from online games business ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 45-60.
    12. Cabras, Ignazio & Goumagias, Nikolaos D. & Fernandes, Kiran & Cowling, Peter & Li, Feng & Kudenko, Daniel & Devlin, Sam & Nucciarelli, Alberto, 2017. "Exploring survival rates of companies in the UK video-games industry: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 305-314.
    13. O'Reilly, Charles A., III & Tushman, Michael L., 2013. "Organizational Ambidexterity: Past, Present and Future," Research Papers 2130, Stanford University, Graduate School of Business.
    14. Nicolas Battard & Vincent Mangematin, 2013. "Idiosyncratic distances: Impact of mobile technology practices on role segmentation and integration," Grenoble Ecole de Management (Post-Print) hal-00657978, HAL.
    15. Landoni, Paolo & Dell’era, Claudio & Frattini, Federico & Messeni Petruzzelli, Antonio & Verganti, Roberto & Manelli, Luca, 2020. "Business model innovation in cultural and creative industries: Insights from three leading mobile gaming firms," Technovation, Elsevier, vol. 92.
    16. Jianguang Sun & Runhua Tan, 2012. "Method For Forecasting Di Based On Triz Technology System Evolution Theory," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-20.
    17. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    18. Nicolas Battard & Vincent Mangematin, 2013. "Idiosyncratic distances: Impact of mobile technology practices on role segmentation and integration," Post-Print hal-00657978, HAL.
    19. Amit, Raphael & Zott, Christoph, 2010. "Business model innovation: Creating value in times of change," IESE Research Papers D/870, IESE Business School.
    20. Marchand, André & Hennig-Thurau, Thorsten, 2013. "Value Creation in the Video Game Industry: Industry Economics, Consumer Benefits, and Research Opportunities," Journal of Interactive Marketing, Elsevier, vol. 27(3), pages 141-157.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kraus, Sascha & Kumar, Satish & Lim, Weng Marc & Kaur, Jaspreet & Sharma, Anuj & Schiavone, Francesco, 2023. "From moon landing to metaverse: Tracing the evolution of Technological Forecasting and Social Change," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    2. Xi, Xun & Xi, Baoxing & Miao, Chenglin & Yu, Rongjian & Xie, Jie & Xiang, Rong & Hu, Feng, 2022. "Factors influencing technological innovation efficiency in the Chinese video game industry: Applying the meta-frontier approach," Technological Forecasting and Social Change, Elsevier, vol. 178(C).
    3. Piñeiro-Chousa, Juan & López-Cabarcos, M. Ángeles & Pérez-Pico, Ada M. & Caby, Jérôme, 2023. "The influence of Twitch and sustainability on the stock returns of video game companies: Before and after COVID-19," Journal of Business Research, Elsevier, vol. 157(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Inoue, Yuki, 2021. "Indirect innovation management by platform ecosystem governance and positioning: Toward collective ambidexterity in the ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    2. Hui Li & Qiaowei Shen & Yakov Bart, 2018. "Local Market Characteristics and Online-to-Offline Commerce: An Empirical Analysis of Groupon," Management Science, INFORMS, vol. 64(4), pages 1860-1878, April.
    3. Jin Li & Gary Pisano & Yejia Xu & Feng Zhu, 2023. "Marketplace Scalability and Strategic Use of Platform Investment," Management Science, INFORMS, vol. 69(7), pages 3958-3975, July.
    4. Etro, Federico, 2023. "Platform competition with free entry of sellers," International Journal of Industrial Organization, Elsevier, vol. 89(C).
    5. Yongwook Paik & Christos A. Makridis, 2023. "The social value of a ridesharing platform: a hedonic pricing approach," Empirical Economics, Springer, vol. 64(5), pages 2125-2150, May.
    6. Yuki Inoue & Takeshi Takenaka & Takami Kasasaku & Tadafumi Tamegai & Ryohei Arai, 2023. "How to design platform ecosystems by intrapreneurs: Implications from action design research on IoT-based platform," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-26, December.
    7. Wu, Cheng-Han & Chiu, Yun-Yao, 2023. "Pricing and content development for online media platforms regarding consumer homing choices," European Journal of Operational Research, Elsevier, vol. 305(1), pages 312-328.
    8. Jullien, Bruno & Pavan, Alessandro & Rysman, Marc, 2021. "Two-sided Markets, Pricing, and Network Effects," TSE Working Papers 21-1238, Toulouse School of Economics (TSE).
    9. Yuki Inoue & Masataka Hashimoto & Takeshi Takenaka, 2019. "Effectiveness of Ecosystem Strategies for the Sustainability of Marketplace Platform Ecosystems," Sustainability, MDPI, vol. 11(20), pages 1-33, October.
    10. Xing Wan & Javier Cenamor & Geoffrey Parker & Marshall Van Alstyne, 2017. "Unraveling Platform Strategies: A Review from an Organizational Ambidexterity Perspective," Sustainability, MDPI, vol. 9(5), pages 1-18, May.
    11. Cabras, Ignazio & Goumagias, Nikolaos D. & Fernandes, Kiran & Cowling, Peter & Li, Feng & Kudenko, Daniel & Devlin, Sam & Nucciarelli, Alberto, 2017. "Exploring survival rates of companies in the UK video-games industry: An empirical study," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 305-314.
    12. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    13. O'Kane, Conor & Mangematin, Vincent & Zhang, Jing A. & Cunningham, James A., 2020. "How university-based principal investigators shape a hybrid role identity," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    14. Andreas Hein & Maximilian Schreieck & Tobias Riasanow & David Soto Setzke & Manuel Wiesche & Markus Böhm & Helmut Krcmar, 2020. "Digital platform ecosystems," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(1), pages 87-98, March.
    15. Fabian Schueler & Dimitri Petrik, 2022. "Objectives of platform research: A co-citation and systematic literature review analysis," Papers 2202.08822, arXiv.org.
    16. Kimmo Karhu & Robin Gustafsson & Kalle Lyytinen, 2018. "Exploiting and Defending Open Digital Platforms with Boundary Resources: Android’s Five Platform Forks," Information Systems Research, INFORMS, vol. 29(2), pages 479-497, June.
    17. Chenglong Zhang & Jianqing Chen & Srinivasan Raghunathan, 2022. "Two-Sided Platform Competition in a Sharing Economy," Management Science, INFORMS, vol. 68(12), pages 8909-8932, December.
    18. Patrick Loux & Mathilde Aubry & Sébastien Tran & Emmanuel Baudoin, 2020. "Multi-sided platforms in B2B contexts : the role of affiliation costs and interdependencies in adoption decisions," Post-Print hal-02376313, HAL.
    19. Jørgen Veisdal, 2020. "The dynamics of entry for digital platforms in two-sided markets: a multi-case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 539-556, September.
    20. Satish Nambisan & Shaker A. Zahra & Yadong Luo, 2019. "Global platforms and ecosystems: Implications for international business theories," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(9), pages 1464-1486, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:174:y:2022:i:c:s0040162521006430. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.