 By Geoffrey Brooks
el 03-May-2008 | Filed under: Features, Business Each week Jeff Engel and Geoff Brooks contribute Counting Rupees, a column on the business behind gaming:
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Much as many people expected, Activision public relations recently confirmed that (one song aside) Aerosmith's catalogue will remain a Guitar Hero-exclusive for the foreseeable future. There's a considerable amount of public speculation as to whether or not this will spark future fights over exclusive content, and I'm inclined to assume that it will. The incentives are just too strong to avoid future conflict - the battle between Guitar Hero and Rock Band is a great example of the prisoner's dilemma.
The prisoner's dilemma is a common building block of game theory, which is often used in business strategy to describe potential competitive responses or explain company actions. It's so named because of the story that was used to illustrate its problem. Imagine two fugitives that have robbed a bank and were just picked up by the police. Each man is taken into a separate room, and the police make the following offer to each: if they confess to the crime and help to implicate their partner, they'll receive an extremely lenient sentence. However, if they stay quiet and their partner implicates them, they'll receive the maximum penalty - while their partner gets off scot-free. Of course, if both confess, the evidence they provide isn't particularly useful, and they'll each go to trial, ending up with a sentence somewhere in the middle. What should each man do?Continue reading Counting Rupees: Guitar Hero, Rock Band, and the Prisoner's Dilemma Permalink | Email this | Comments
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