In recent years, Taiwan government has offered incentives and supportive policies such as tax reduction with a hope to foster the development of domestic online game industry. However, domestically developed online games are failed to dominate the online game market. Over seventy percents of the market share is occupied by foreign games, especially those from Korea. In this paper, a system dynamics model is built to explore the growth and competition dynamics of the online game market. The model shows that multiple reinforcing feedback loops and limited market size together led to the rapid but temporal market growth. The market reached its limit so quickly that Taiwan’s domestic game developers lost the opportunity to grow because of unavoidable time delays in R&D capacity expansion and game development and commercialization process. The online game case shows that market growth and R&D expansion that contrast sharply in lead times could cause tough barriers that are far beyond late entrants’ abilities to conquer, even governmental support might hardly be useful.

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Date created

• 2010 July 25-2010 July 29

Type

• Document

Processing Activity

• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

License

• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

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17bfad39e1d09bfe17f82d7ae001449f

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Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Part of

516b485dacfb3c26da448243f0948912

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Collection

System Dynamic Society Records

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Collecting area

• This collection is part of the University Archives