GENRES OF COMPLEMENTARY PRODUCTS IN PLATFORM-BASED MARKETS: CHANGES IN EVOLUTIONARY MECHANISMS BY PLATFORM DIFFUSION STRATEGIES

Abstract

Platform and complementary products configure platform-based markets. This study focuses on the genres of complementary products in a platform-based market. We examine differences in the influences of mediating factors on the evolutionary mechanisms of genres, based on different diffusion strategies in the Japanese video game sector: Nintendo DS and PlayStation Portable. This study shows that a rapid platform diffusion strategy generates bandwagon effects in the evolution of genres, and, in turn, the excessive evolution of various genres negatively influences the sales distribution of software in the platform-based market, leading to a rapid decline of the platform. Additionally, this rapid decline results in an evolutionary failure of genres at a later stage in the platform’s lifecycle. Thus, we imply that a rapid platform expansion strategy may cause a rapid decline of the platform-based market and may exclude innovations based on undeveloped genres of complementary products.