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Creating New Demand: The Competition, Formation of Submarkets, and Platforms

  • Fumihiko IkuineEmail author
Chapter
Part of the Evolutionary Economics and Social Complexity Science book series (EESCS, volume 12)

Abstract

How do companies go about creating demand? This chapter presents the case of console games (home video games) in Japan. This market was formed as a completely new market in the 1980s. The early days of software for consoles (game software) are described, and the process of creating demand for this market is considered. Emphasis is placed on the impact of corporate competition on genres, the formation of submarkets, and platforms. Especially, we discuss the contribution of Space Invaders as a successful predecessor and the role of the Family Computer as a platform. Game software relies on an open architecture with paired (complementary) products. Since these markets are open, it is difficult to define them in a simple and consistent manner. Rather, they are more like agglomerations of multiple submarkets, within which interactions among companies take place. Diversity both within and across these submarkets attracts large numbers of consumers. Therefore, multiple submarkets coexist within the video game market and create huge demand as a whole. The combination of a platform and a successful predecessor enabled the coexistence of submarkets, brought about competition among companies, and was a driving force that stimulated vigorous demand for game software.

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Copyright information

© Springer Japan KK, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Faculty of Engineering, Information and SystemsUniversity of TsukubaTsukubaJapan

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