Chapter 6

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Unformatted text preview: So ny’s Lo sses o n P S3: $ 3 Billio n and Co unting,” Yaho o ! To day in Tech, June 27, 2008, http:/ / tech.yaho o .co m/ blo gs/ null/ 96355. What If Microsoft Threw a Party and No One Showed Up? Micro so f t launched the Zune media player with f eatures that sho uld be subject to netwo rk ef f ects—the ability to share pho to s and music by wirelessly “squirting” co ntent to o ther Zune users. The f irm even pro mo ted Zune with the tagline “Welco me to the So cial.” P ro blem was the Zune So cial was a party no o ne wanted to attend. The late-arriving Zune garnered a market share o f just 3 percent, and users remained hard pressed to f ind buddies to leverage these neat so cial f eatures.R. Walker, “AntiP o d,” New Yo rk Times, August 8, 2008. A co o l idea do es no t make a netwo rk ef f ect happen. Subsidize Adoption Starting a netwo rk ef f ect can be to ugh—there’s little incentive to jo in a netwo rk if there’s no o ne in the system to co mmunicate with. In o ne admittedly ris...
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This document was uploaded on 01/31/2014.

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