description Platform Wars Overview
Platform Wars is a business simulation developed by the MIT Sloan School of Management that models the video game console industry. It is used to teach students about two-sided markets, network effects, and platform strategy by having participants make decisions on hardware pricing, software subsidies, and developer royalties. The simulation is designed for MBA students and corporate training programs to demonstrate how pricing strategies affect market adoption in technology platforms.
help Platform Wars FAQ
What decisions do students make in MIT's Platform Wars simulation?
Participants manage a video-game hardware platform associated with competitors such as Sony, Nintendo or Microsoft. Their choices concern matters such as console pricing, platform adoption and the supply of complementary games.
Why is the PlayStation 3 launch central to Platform Wars?
MIT Sloan built the simulation around a companion case about Sony's PlayStation 3 launch. That setting exposes the tension between expensive hardware, attracting players and persuading developers to support a platform.
How does Platform Wars demonstrate a two-sided market?
Console owners value a platform partly because games are available, while developers value it partly because many players own the hardware. The simulation makes these indirect network effects visible through changes in the installed bases on both sides.
Is Platform Wars a downloadable consumer video game?
No, it is a live, web-based management simulation created for education and corporate training. MIT Sloan lists John Sterman as its developer and positions it for strategy, economics and system-dynamics courses.
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