Winning the Hardware Software Game Winning the Hardware-Software Game - 2nd Edition

Using Game Theory to Optimize the Pace of New Technology Adoption
  • How do you encourage speedier adoption of your product or service?
  • How do you increase the value your product or service creates for your customers?
  • How do you extract more of the value created by your product or service for yourself?



  • Smartphone manufacturers, such as Apple and Samsung, have thrived for the past fifteen years using a specific business model that involves

    (i) Swiftly releasing next generation products that contain significant advancements over previous generations of products, and

    (ii) Selling next generation technologies at a premium.

    However, more recently, sales of used and refurbished older-generation-technology products have cut into sales of latest-generation-technology products. This analysis examines the game between sellers of new products and sellers of used and refurbished products.


    Figure 1

    used tech game