Is There a First-mover Advantage in the Market for Japanese Video Game Systems?

摘要

The market for video game machines in Japan has evolved in a series of distinct and progressive generations, each displaying the characteristics of a standards war. Economic theory suggests that order of entry has an important influence on market performance, and that the first mover has a strategic advantage. This paper examines the effect that a firm's position in the order of entry to the market has upon its performance. The results indicate that, in the market for Japanese video game systems, there are significant disadvantages associated with the first move and significant advantages associated with the second move.