Assignment
Assignment
Assignment
Christopher Brickhouse
Professor. Pettibone
Then I will describe the actions taken and the results of those actions on how I beat my
competitor. Lastly, I will describe the nature of fixed, variable, and marginal costs, illustrate the
difference between production and investment decisions, and evaluate the impacts of direct and
In this web-based simulation, I played the role of a senior manager at a video game
platform company like Nintendo, Sony, or Microsoft. I experienced the challenges of strategic
competition. Furthermore, this simulation is created and hosted by MIT’s Sloan School of
"In such markets, success depends not only on a product’s price and features but on how
many people own it (a direct network externality) and on the number of games and applications
available. The size of the installed base of complementary products (an indirect network
externality). Platform markets are increasingly common in settings other than video games,
This study source was downloaded by 100000850493565 from CourseHero.com on 08-04-2022 00:08:04 GMT -05:00
https://www.coursehero.com/file/121692932/Platform-Wars-Experiencedocx/
2
However, there are two common reinforcing feedbacks in platform markets. First, you
have Direct Network Externality, the utility product that increases with the size of the network of
other users. The second is Indirect Network Externality, the utility product that increases with the
number and variety of complementary products on the platform. For example, Sony PlayStation
"PlayStation Now is a game subscription service that gives you access to hundreds of
games. With PS Now, you can stream PS4, PS3, and PS2 games instantly on PS5, PS4, and PC,
and download hundreds of PS4 games to play on your PS5 or PS4 console." "Xbox Game Pass is
the same thing, but a tad bit different. Xbox Game Pass includes all the benefits of Xbox Live
Gold, plus over 100 high-quality console and PC games. New games are added all the time, so
there’s always something new to play. It offers exclusive member deals and discounts, and you
can play together with friends on the most advanced multiplayer network and discover your next
favorite game."
During the first round of Platform Wars, I kept the Console Price constant. However, I
did change the price from 5-10 intervals each year. As you can acknowledge, the Console Price
starts at 250 for year 1; I decided to change the console price to 140. From this, my market share
and net income dropped dramatically. As I progressed over the years, changing my Console Price
In my second round of Platform Wars, I kept the console price constant as well. However,
I changed the price from 190 to 200. From this, the competitor was able to compete with me. But
This study source was downloaded by 100000850493565 from CourseHero.com on 08-04-2022 00:08:04 GMT -05:00
https://www.coursehero.com/file/121692932/Platform-Wars-Experiencedocx/
3
by year 10, I was fifty percent higher than my competitor. Furthermore, if I wanted to increase
daily output, I could have lowered the price even more. According to Schiller B. (2016).
Essentials of Economics. McGraw-Hill., "labor is regarded as a variable cost in this line of work.
The cost varies with the rate of output. Now, the consoles themselves are another variable cost
(page 98)."
Videogame entertainment is an extensive social and online activity that children and
adults love to play with their friends. Depending on how much money people "spend" on games
nowadays (which is a lot, as Sony PlayStation 5s are out of stock) directly related to how many
consoles I need to produce. In this sense, the cost of consoles input varies with the rate of
console output.
In conclusion, Platform Wars and the textbook illustrates graphical diagrams. However,
the textbook is a more in-depth version and explains the data shown on the graphs thoroughly.
Platform Wars is more of a hands-on website software where you control and change the settings
to your likings.
References:
Sterman, J. (n.d.). Platform wars: Simulating the Battle for Video Game Supremacy. MIT
https://mitsloan.mit.edu/LearningEdge/simulations/platform-wars/Pages/default.aspx.
Sony. (2021). PS Now: On-demand PlayStation games on PS5, PS4 or PC. PlayStation.
This study source was downloaded by 100000850493565 from CourseHero.com on 08-04-2022 00:08:04 GMT -05:00
https://www.coursehero.com/file/121692932/Platform-Wars-Experiencedocx/
4
emcid=pa-co-
421879&gclid=Cj0KCQiAy4eNBhCaARIsAFDVtI1HfGoOx5jKWwHLb8kz2wr8hMEA
oTdVqSmTn4EhCI6mP-V_hokl6goaAnJGEALw_wcB&gclsrc=aw.ds.
Microsoft. (2021). Join Xbox game pass: Discover your next favorite game: Xbox.
game-pass.
Gilbert, B. (2021, March 20). It's not just you: It's still nearly impossible to buy a
https://www.businessinsider.com/playstation-5-still-sold-out-everywhere-2021-3.
This study source was downloaded by 100000850493565 from CourseHero.com on 08-04-2022 00:08:04 GMT -05:00
https://www.coursehero.com/file/121692932/Platform-Wars-Experiencedocx/
Powered by TCPDF (www.tcpdf.org)