The digital world's midlife crisis

Abstract

We are in the midst of convergence between high definition television and game consoles and between handheld game machines and mobile phones. This market shift creates both big losers and big winners. IBM occupies the most favorable position with chip designs for all three next-generation consoles. But all the contenders find themselves facing an uncertain future. The players in this market are contending with what Clayton calls the innovators dilemma. Each of the firm is immersed in an internal midlife crisis to redefine its identity so that it can triumph in the external struggle against its rival in the game market.