Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/88948
Authors: 
Engelstätter, Benjamin
Ward, Michael R.
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Papers 13-117
Abstract: 
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.
Subjects: 
Product Entry
Non-Price Competition
Niche
Strategy
Submarkets
Entertainment Goods
Video Games
JEL: 
D43
L13
L96
Document Type: 
Working Paper

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