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Gt Aau1

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The game theory between Sony Microsoft game consoles

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Gt Aau1

  1. 1. Economics and the organisation of economic activity Game Theory AMALIA LELIA CRETU, GR.8
  2. 2. + Cooperation Co-opetition = Detterence Competitive Intelligence (Illegal Industrial Espionage) Commitment Signalling
  3. 3. A framework to predicting competitor’s behavior Microsoft and Sony – Video Game Console Market Rivalry During 2006-2007 , Sony was locked in a ferocious war with Microsoft for leadership in the video game console market. Because of its early lead, Microsoft’s XBox 360 had a substantial lead in installed base, but Sony’s PS3 had superior specifications. Sony is anxious to predict how aggressive Microsoft is likely to be in this market. (Grant, Robert; Contemporary Strategy Analysis; 6th)
  4. 4. A framework to predicting competitor’s behavior <ul><li>Strategy (how is the competitor competing?) </li></ul><ul><li>Objectives (what are competitor’s goals? How are they going to change?) </li></ul><ul><li>Assumptions (what assumptions does the competitor has about industry?) </li></ul><ul><li>Resources (which are the competitor’s key strengths and weaknesses?) </li></ul><ul><li>Predictions (How will the competitor respond to another’s strategic initiatives?) </li></ul>
  5. 5. A framework to predicting competitor’s behavior
  6. 6. A framework to predicting competitor’s behavior
  7. 7. A framework to predicting competitor’s behavior

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