Video Games and the Shaping of Industrial Transformation

Center on Japanese Economy and Business, Columbia Business School
Tuesday, February 21, 2012
Uris 301, Columbia Business School

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First, I'll speak in general about management during a period where the ecosystem is undergoing a major change.
To start, anticipate what kind of ecosystem it will become. Choose the direction your company will take within this new ecosystem, and what role your company will play. You then have to realize that you can't do everything. Each company must decide in what position they will make the most profit. That's the most critical thing. And also realize that you can’t be rigid in your positioning. The new ecosystem will be established as players evolve. Therefore, while you have to decide which general position you'll take, if your decisions are too detailed you'll lose flexibility.
Understanding these concepts, how will you prepare your company to move in this direction? You can’t count back from your goal to come up with a plan. Here, innovation management becomes incredibly important.
So let’s consider how we utilize this to manage environmental transformation in the game industry.
We begin by assuming that everything will be networked. Based on that assumption, we ask ourselves, what will change?
To illustrate, I used to work at an investment bank. The senior bankers once taught me something important. "Buy cheap, sell high." Of course! But just saying those words is worthless. And now is no different. People say that we need to make all our content connected to the net and grow the industry. Of course! But there’s no one right answer; you have to think it through carefully.

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Here are the four points of change for the network era that I’ve been thinking about.
I'll explain those points as well as their implications.

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