We study the effect of backward compatibility on both sides of the market as well as the moderators of these effects.
XBOX BACKWARDS COMPATIBILITY REQUEST SOFTWARE
Hence, the effect of backward compatibility depends crucially on the reaction of the population of independent software developers ( Adner and Kapoor 2010). In our empirical setting-the home video game console industry-ensuring sufficient supply of software through backward compatibility is especially challenging since the other side of the market, video games, is supplied largely by independent firms that are not controlled by the hardware manufacturer. We are particularly interested in identifying some of the contingencies of backward compatibility-that is, when is backward compatibility an especially beneficial strategy for competing across platform generations? Since much of the benefits of backward compatibility come from the availability of complementary products, i.e., indirect network effects, we study the role of parent installed base of software on hardware demand and software supply. We will focus on this while accounting for many of the other mechanisms. In platform markets, making a new platform generation backward compatible-that is, the installed base (of hard- and/or software) of the old generation also works with the new generation-is an important strategy of passing some of the previous generations’ success on to the new generation ( Adomavicius et al. Finally, the installed base of an existing platform generation (the “parent” generation) can be used as an asset by making the new generation backward compatible ( Adner and Kapoor 2010, Zhu and Iansiti 2012). Moreover, by having been active in a prior generation, firms may have built relationships either with developers of complementary products, e.g., software, or distribution channels ( Schilling 2003). Similarly, production processes of earlier generations may generate learning curve effects ( Amit 1986) and give firms a cost advantage in the new generation if the production processes are sufficiently similar ( Schilling et al. For example, since expectations matter greatly in the initial phases of the new generation, an established brand or reputation can make up for the lack of an actual installed base of users ( Schilling 2003). However, several mechanisms may help firms transfer their market position across platform generations. This is challenging because new, technologically superior generations may render some of the factors that made a firm successful in the first place obsolete. please be nice to him on Twitter and be patient when it comes to BC announcements.Successful firms in platform markets will strive to maintain their leading position even as new platform generations emerge. He loves doing what he does for work, but he cannot reveal when certain games will be out.
He says it would have been easier if the whole Xbox 360 catalog was compatible on Xbox One, but this is not the case. He says once Black Ops 2 is delivered, another game will take its place as being the most requested anyway. He goes on to say that Black Ops 2 is the most requested game so far, but it’s not Microsoft’s fault that they cannot deliver it on time. Licensing issues also become a factor as these things expire or another company may own a specific IP. For example we may see Black Ops 2 become backwards compatible only when Activision feels its right to release it. He said releasing a BC game isn’t always easy because publishers love to choose when they want to release games to maximize sales. Microsoft doesn’t want to anger publishers by releasing a BC game too early or something like that. Barriers stop them from adding games in a timely fashion and this includes technical problems and even things like IP ownership. Anyway, he said big games are still coming, but not every month will be able to bring in bi-weekly titles. It’s a long statement so we’ll do our best to summarize it. This is the main reason he wants to speak out on the situation.
He wants to single out impatient people that request games to be added all the time, but he wants to make sure that getting games isn’t easy all of the time. He continually gets requests all the time and wants to clear the air. Microsoft’s Bill Stillwell has posted a long statement on his Twitter account to address the challenges of making backwards compatible games work for the Xbox One.
0 kommentar(er)
