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enthusiasm f o r its Saturn co nso le.M. Schilling, “Techno lo gical Leapf ro gging: Lesso ns f ro m the U.S. Video Game Co nso le Industry,” Califo rnia Management Rev iew , Spring 2003. Too Much of a Good Thing?
When netwo rk ef f ects are present, mo re users attract mo re users. That’s a go o d thing as lo ng
as a f irm can earn mo ney f ro m this virtuo us cycle. But so metimes a netwo rk ef f ect attracts to o
many users and a service can be so o verwhelmed it beco mes unusable. These so -called
congest ion ef f ect s o ccur when increasing numbers o f users lo wer the value o f a pro duct o r
service. This mo st o f ten happens when a key reso urce beco mes increasingly scarce. Users o f
the game Ultima were disappo inted in an early o nline versio n that launched witho ut eno ugh
mo nsters to f ight o r server po wer to handle the crush o f f ans. Twitter’s early inf rastructure
was o f ten unable to handle the demands o f a service in hypergro wth (leading to th...
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- Winter '14