Arbeitspapier

Strategic timing of entry: Evidence from video games

This paper investigates how video game publishers' choice of game release date is affected by the expected level of competition within the game's product niche. We identify game niches by genre, age-appropriateness, a four week window cohort, publisher and console system. Our analysis is based on two different video game data sets, one based on industry sales data and the other featuring extensive consumer usage information. We show that consumer substitution across games is stronger within most of the dimensions describing product niches. Sales volumes decay quickly after the opening weekend, so at any point in time, a niche willtypically be served by few current titles. Thus, publishers have incentives to avoid releasing during periods of fierce intra-niche competition. We show that games are more likely to be released so as to avoid weeks when their niche is relatively well served.

Language
Englisch

Bibliographic citation
Series: ZEW Discussion Papers ; No. 13-117

Classification
Wirtschaft
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Oligopoly and Other Imperfect Markets
Telecommunications
Subject
Product Entry
Non-Price Competition
Niche
Strategy
Submarkets
Entertainment Goods
Video Games

Event
Geistige Schöpfung
(who)
Engelstätter, Benjamin
Ward, Michael R.
Event
Veröffentlichung
(who)
Zentrum für Europäische Wirtschaftsforschung (ZEW)
(where)
Mannheim
(when)
2013

Handle
URN
urn:nbn:de:bsz:180-madoc-353911
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Engelstätter, Benjamin
  • Ward, Michael R.
  • Zentrum für Europäische Wirtschaftsforschung (ZEW)

Time of origin

  • 2013

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