Platform Wars Simulation

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 PLATFORM WARS SIMULATION 2

Platform Wars Simulation

Reflection on personal experience

Platform wars is a live web-based replication or only simulation where partakers take up senior

management's role at a video game computer in hardware platforms like Microsoft or Sony and

operating system companies. The reason for this is to take part in active simulate in a fierce

market that is multi-sided where your video game console seeks to dominate. It would depend on

more than your console price to dominate the market. Market domination also relies on the

console features, the number of customers or clients that pose it and the cost of content made

available for the precise console. To advance the simulation, one ought to input three blacks of

data: console price and several games to promote royalties paid by the game's inventors.

Changing the inputs every year is to surpass the AI competitor and take charge of the console

market video game.

I began the first year by pricing my console at $250, $11 cheaper than my competitor's console. I

then went ahead to subsidize three games' titles for the beginning year to maximize the console's

interest, while my competitor's act was to fund the game instead. After that, I made 20% of

royalties paid by the game innovators. The royalty's amount was 4% higher than that of my

competitors. I achieved this by combining higher subsidized games to keep in mind that clients

or consumers would choose my console because of the game; soon after, the game creators

would opt for my console due to more consumers owning it(Bhatia et al., 2017). The increase in

royalties would then pay off for them as they would make more console sales. In the first year,

my console market share's outcomes stood at 46%.

This year, I plan to drop the game subsidize to zero, lower the console amount by $50 and

maintain royalties at 20%. The reason behind it is if I would continue to deliver more consoles to

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 PLATFORM WARS SIMULATION 3

many customers, then it would mean that game creators would consider my console and continue

to pay the higher royalty, from which I would continue to earn revenue. The second-year showed

that my market share rose to 49%. I also increased my gross profit to 267.3 million, which was 5

million higher than my competitor's.

I maintained my 20% royalties and subsidized games to zero in my third year. I lowered my

console price to $150 as a marketing strategy for my console to come off as the most affordable

with the best game selection. My third-year results portrayed that my console's market share is

54%. The first year in which my console is taking the lead in the platform wars. My gross profit

increased to 278.4 million, 8 million dollars less than my competitors'.

My main goal was to maintain the console price at $150 and the subsidized games at nil during

the last year. I then decided to increase royalties by 5% since I controlled the market. The reason

behind it was because I now possessed more consoles in my customer's homes more than my

competitors. Increasing my royalties at this point would add to my gross profit while still giving

me a chance to take control of the market(Bhatia et al., 2017). My fourth-year result would show

that my console market share increased to 56%, increasing my gross profit to 647.6 million, 144

million more than my competitor's.

The simulation gave an exact look at how my console company began with fixed costs, cornered

the market and ended up making more each year by subsidizing the games. It also showed how

lowering my console price year was a wise investment decision that increased my gross profit. In

the end, I gained the fame of my console, and through that, producers of the game had more

consumers for their product sale. To cut the story short, by lowering the console price and

maintaining the game's interest, I managed to control the market and lead the platform war.

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 PLATFORM WARS SIMULATION 4

Reference

Bhatia, A., Yusuf, Z., Ritter, D., & Hunke, N. (2017). Who Will Win the IoT Platform Wars?

BCG Perspectives.

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