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MIT Sloan > LearningEdge > System Dynamics > Sony's Battle for Video Game Supremacy
Kahn Jekarl, Cate Reavis and John Sterman
“The stakes for next-generation hardware leadership are enormous. It’s about owning the set-top box that may ultimately connect the living room to the Internet.” – Warren Jenson, CFO, Electronic Arts (Financial Times, May 11, 2005)
In November 2006, with the launch of the Sony PlayStation 3 a mere weeks away, Sony Corporation’s CEO Sir Howard Stringer reflected on the past 30-year history of the video game industry, while crossing his fingers that the PS3 would have a successful launch in an increasingly cut-throat industry.
Learning Objective
To illustrate how network externalities and complementary assets affect strategy and competition.
Could be taught in the following course(s)
system dynamics, technology strategy
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