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Unformatted text preview: er pro vide o ver 85 percent o f music so ld in the United
States. Finally, it’s impo rtant to no te that the best pro duct o r service do esn’t always win. P layStatio n 2
do minated the o riginal Xbo x in a prio r generatio n’s game co nso le war, despite the f act that nearly
every review claimed the Xbo x was hands-do wn a mo re technically superio r machine. Why were
users willing to cho o se an inf erio r pro duct (P S2) o ver a superio r o ne (Xbo x)? The po wer o f
netwo rk ef f ects! P S2 had mo re users, which attracted mo re develo pers o f f ering mo re games. Figure 6. 1 Bat t ling a leader wit h net work effect s is t ough. Adap t ed from J. Gallaugher and Y. Wang, “Linux vs .
Windows in t he Middle Kingdom: A St rat egic Valuat ion Model for Plat form Comp et it ion” (p ap er,
Proceedings of t he 2008 Meet ing of Americas Conference on Informat ion Sys t ems , Toront o, CA, Augus t
2008), ex t ending M. Schilling, “Technological Leap frogging: Les s ons from...
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This document was uploaded on 01/31/2014.
- Winter '14