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The Evolution of the Home Video Game Software Industry in Japan: An Empirical Study on Factors in the Industry’s Evolution

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Abstract

In this paper, we describe the evolutionary process of the home video game software industry in Japan from 1983 to 1999. From the descriptive analysis, we identified an innovation pattern which is similar to the one found in a detailed case study of the automobile industry by Abernathy. We can see a similar innovation pattern in the game software industry: within a few years after the game software industry was born, many radical and important product innovations occurred, followed by many incremental and minor product innovations. People within the home video game software firms accumulate know-how (knowledge) gradually, according to continued development of products. This knowledge accumulation makes them hesitate in making a substantial new attempt at product development. We call this phenomenon the “development productivity dilemma,” analogous to the earlier concept in the automobile industry, the “productivity dilemma.” In this meaning, Abernathy’s theory is applicable to not only manufacturing areas, but also knowledge-based areas such as software development. Accumulations of knowledge restrict making radical attempts and definitely determine the evolutional process of the industry.

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Authors and Affiliations

  1. Faculty of Engineering, Information and Systems, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki, 305-8577, Japan

    Fumihiko Ikuine

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  1. Fumihiko Ikuine
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Correspondence to Fumihiko Ikuine.

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Ikuine, F. The Evolution of the Home Video Game Software Industry in Japan: An Empirical Study on Factors in the Industry’s Evolution. Evolut Inst Econ Rev 9, 37–50 (2012). https://doi.org/10.14441/eier.A2012003

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  • DOI: https://doi.org/10.14441/eier.A2012003

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