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Economics of Game Consoles

February 21, 2007
The is an excellent article at the Inquirer (the first of a series) about the business of making game consoles and their games.
From the headline, things look bad for Sony, but the article makes the (correct) point that the company that ships the most consoles isn’t necessarily the winner. If the market share of each of the next generation consoles ends up within 10 percentage points of the others, one will have the most market share, but that distinction isn’t likely to mean very much. Only when a victory in sales is so great that it causes developers to develop for your console to the exclusion of others and therefore feed market dominance does being the "winner" really matter.
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