diffusion of game systems is analyzed by the interaction between console adoption decisions and software supply decisions … expanding software variety becomes more effective later. The paper also finds a degree of inertia in the software market that … does not exist in the hardware market. This observation implies that software providers continue to exploit the installed …

. Theory suggests that exclusive contracts in vertical relationships between the platform provider and software supplier can … the indirect network effects from software. We find that although network effects are present, the marginal exclusive game … a market structure dominated by one system protected by a hedge of complementary software. Our investigation suggests …

Computer and video games is a young industry with rapid growth underpinned by technological development. The global …