The Launch Timing of New and Dominant Multigeneration Technologies

In this paper we introduce a model that is suitable to study the diffusion of new and dominant multi-generation technologies. Examples are computer operat- ing systems, mobile phone standards, video game consoles. Our model incorporates three new features that are not included in related models. First, we add the ability of a firm to transfer users of its old technologies to the new generations, what we call firms’ alpha. Second, we add competitive relations between market technolo- gies. Third, the launch strategies diagnosed by our model cover, as special cases, the now or never strategies and hence it is suitable to study intermediate launch strategies. We find that the appropriate timing of a new technology depends heavily on both the firms’ alphas and on the competitive positioning of their products. In addition, we argue that the strategic interaction of firms may lead to very different sales outcomes depending on the competitive positioning of their products. In the VGC case we find that the Nintendo Wii was launched at an appropriate moment while the Sony PS3 perhaps should have never been launched

Virtual Reality Games for Motor Rehabilitation

This paper presents a fuzzy logic based method to track user satisfaction without the need for devices to monitor users physiological conditions. User satisfaction is the key to any product’s acceptance; computer applications and video games provide a unique opportunity to provide a tailored environment for each user to better suit their needs. We have implemented a non-adaptive fuzzy logic model of emotion, based on the emotional component of the Fuzzy Logic Adaptive Model of Emotion (FLAME) proposed by El-Nasr, to estimate player emotion in UnrealTournament 2004. In this paper we describe the implementation of this system and present the results of one of several play tests. Our research contradicts the current literature that suggests physiological measurements are needed. We show that it is possible to use a software only method to estimate user emotion

The Impact Of Platform On Global Video Game Sales

This paper examines video game sales by platform in the global market from a period spanning 2006 through 2011.  As the home video game industry has rapidly matured and become established as a forefront facet of interactive entertainment in the home, we seek to determine what aspects of the video game market have the greatest impact on sales.  This question is particularly poignant, as the maturation of the video game industry has witnessed efforts at both vertical integration and horizontal expansion on the part of the top game publishers and developers in hopes of solidly grounding the industry.  This study employs a Kruskal-Wallis test to compare eight different gaming platforms.  The results indicate Nintendo’s Wii was the top selling global platform; Nintendo DS was the second tier; Xbox 360, Sony PlayStation 3, and the personal computer (PC) are in the third tier; the fourth tier consists of Sony PlayStation 2 and Sony PSP; and the retired sixth generation Nintendo GameCube is the lowest sales tier

The business and dynamics of free-to-play social-casual game apps

Thesis (S.M. in Engineering and Management)--Massachusetts Institute of Technology, Engineering Systems Division, 2012.Cataloged from PDF version of thesis.Includes bibliographical references (p. 95-100).The rapid growth of social media platforms, specifically Facebook, has caused startup firms to develop new business models based on social technologies. By leveraging the Facebook platform, new entertainment companies making free-to-play social-casual games have created a multi-billion dollar market for virtual goods, a revenue model in which the core product is given away for free and ancillary goods are sold on top of it. Zynga, the most successful firm in this space, held the largest initial public offering for an Internet-based company since Google in 2004. However, concerns about Zynga's longevity (as well as the longevity of other social-oriented firms, including Groupon) persist for a variety of reasons, including the novelty of its business model, the dependence on hit products with short lifecycles, and the stress placed on internal development teams. This thesis analyzes some of the key problems faced by Zynga and its competitors, including how to monetize free products, how to maintain a user base over time (using platform strategy concepts), and how to develop short and long-term product management and new product development policies (using System Dynamics). An additional chapter develops principles for launching social platforms and products by comparing and contrasting key factors that influenced the growth of five major social media websites. The principles are then discussed as they pertain to Zynga and social-casual gaming, in which case there are notable applications and key exceptions based on Zynga's circumstances. The thesis concludes by discussing several future areas of research that pertain to the socialization of products and technology.by Thomas Hughes Speller, III.S.M.in Engineering and Managemen

Identification and Estimation of Discrete Games of Complete Information

We discuss the identification and estimation of discrete games of complete information. Following Bresnahan and Reiss (1990, 1991), a discrete game is a generalization of a standard discrete choice model where utility depends on the actions of other players. Using recent algorithms to compute all of the Nash equilibria to a game, we propose simulation-based estimators for static, discrete games. With appropriate exclusion restrictions about how covariates enter into payoffs and influence equilibrium selection, the model is identified with only weak parametric assumptions. Monte Carlo evidence demonstrates that the estimator can perform well in moderately-sized samples. As an application, we study the strategic decision of firms in spatially-separated markets to establish a presence on the Internet.

Identification and Estimation of Discrete Games of Complete Information

We discuss the identification and estimation of discrete games with complete information. Following Bresnahan and Reiss, a discrete game is defined to be a generalization of a standard discrete choice model in which utility depends on the actions of other players. Using recent algorithms that compute the complete set of the Nash equilibria, we propose simulation-based estimators for static, discrete games. With appropriate exclusion restrictions about how covariates enter into payoffs and influence equilibrium selection, the model is identified with only weak parametric assumptions. Monte Carlo evidence demonstrates that the estimator can perform well in moderately-sized samples. As an illustration, we study the strategic decisions of firms in spatially-separated markets in establishing a presence on the InternetEmpirical Industrial Organization, Simulation Based Estimation, Homotopies

Reassessing competition concerns in electronic communications markets

Central features of today’s electronic communications markets are complementarities between the different layers of the value chain, substitutability between some applications, network effects in the provision of content and services, two-sided business models that partly involve indirect revenue generation (such as advertising and data profiling), and a patchwork of regulated and unregulated segments of the market. This complexity requires a fresh look at the market forces shaping the industry and a rethinking of market definitions and of the assessment of market power. This article presents the state of play in European electronic communication markets, with a particular emphasis on the recent development of “over the tops”. We also use a stylised model of an electronic communications market to draw some central lessons from economic theory and to elaborate on market definition and market power