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Wiegand, N., Peers, Y. and Bleier, A. (2023). Software Multihoming to Distal Markets: Evidence of Cannibalization and Complementarity in the Video Game Console Industry Journal of the Academy of Marketing Science, 51(2):393--417.


  • Affiliated author
  • Publication year
    2023
  • Journal
    Journal of the Academy of Marketing Science

Steady software supply is a crucial driver of platform sales. While publishers benefit from releasing software across multiple platforms to tap a greater market, platform manufacturers often seek exclusive release to differentiate from competitors. Research has examined such software multihoming across competing platforms of the same technology generation (i.e., the proximal market); however, publishers increasingly multihome software to platforms in distal markets. In the video game console industry, these include previous-generation consoles, handhelds, or mobile devices. This study investigates multihoming to distal markets in the seventh and eighth game console generations. Whereas multihoming to previous-generation consoles cannibalizes focal console sales, multihoming to mobile devices exerts complementary effects. Software quality and console age moderate these relationships, with negative spillovers from multihoming to previous-generation consoles being rooted in lower-quality games and games released later in the console{\textquoteright}s lifecycle. By contrast, multihoming to mobile devices is most beneficial early on.