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Business Analysis of the Game Console Industry Executive Summary Game console manufacturers find themselves at the crossing point of two rapidly developing industries, entertainment and consumer electronics. Software and hardware developers are in a kind of symbiosis: no one can survive without each other, although they are not directly related. But while software programmers can switch hardware platforms easily in the event of failure, hardware manufacturers have to stick to the system, as this is their main product. Improving an unsuccessful console after its initial release is difficult as well because of its monolithic design using special, single-purpose components. Sony has tried to adopt a strategy based on the success of its first console and used the same basic strategy of releasing a multitude of titles thus giving the consumers a wider choice than any of its competitors. Sony's PSX2 seems to be targeted at the older game playing generation (16-26). The release...

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