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Game Console Manufacturers: the End of Sustainable Competitive Advantage?

Author

Listed:
  • Marie CARPENTER

    (Télécom Ecole de Management, Paris)

  • Nabyla DAIDJ

    (Télécom Ecole de Management, Paris)

  • Christina MORENO

    (Télécom SudParis, Institut MinesTélécom)

Abstract

The video games industry has been subject to a number of significant transitions in its short history. The current transition, however, has the potention to restructure more fundamentally the technological, competitive and market dynamics with a growing share of revenues attributed to non-console linked video games. Existing players from the "traditional" video games market are not standing idly by as the market evolves. What is unclear, however, is whether the competitive advantages they have built up over previous generations of video games will be sustainable in the new landscape. Ironically, it may be argued that existing competitive advantages could restrict their ability to adapt to the new dynamics. By proposing two alternative scenarios for future development, we examine the implications of either maintaining competitive advantage or developing temporary advantages. The video games industry is judged to be an ideal laboratory in which to investigate the consequences of hypercompetition and for developing strategic management insight into sustainable competitive advantage in such a context.

Suggested Citation

  • Marie CARPENTER & Nabyla DAIDJ & Christina MORENO, 2014. "Game Console Manufacturers: the End of Sustainable Competitive Advantage?," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 39-60, 2nd quart.
    • Handle: RePEc:idt:journl:cs9402
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    sustainable competitive advantage; temporary competitive advantage; business model; video games.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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