Visibility or Quality? The Role of Vertical Specialization in the Video Game Industry (1980-2011).

Complementing the traditional supply side approach of current research, this study explores the influence of vertical specialization on product performance from a distinctive audience standpoint. Specifically, we argue that vertical specialization is a double-edged sword. On the one hand, it is likely to be beneficial for product visibility because products that are created and commercialized by different organizations are likely to attract both upstream, "creativity oriented" and downstream market oriented audiences. On the other hand, it may lead to lower product quality and higher variance in product quality. Products jointly created and commercialized by vertically specialized organizations are in fact more difficult to assess and less likely to concurrently meet the expectations of the distinct audiences they attract. Findings from a study in the video game industry between 1980 and 2011 provide strong support for our hypotheses. Additional evidence concerning the relevance of both product visibility and product quality on product commercial performance are discussed. [ABSTRACT FROM AUTHOR]