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Playing games with broadband
What does broadband mean for the future of computer and video games—and vice versa? John Riccitiello, the president and COO of Electronic Arts, the $1.7 billion game publisher, argues that games may soon become the killer app driving the rollout of DSL and cable modems, which will in turn bring powerful changes to an industry value chain whose participants include Microsoft, Nintendo, Sega, and Sony.
The take-away: As broadband reorders and enlarges the game industry, game makers will be able to deliver more of their content more cheaply. But they also face a broad redistribution of margins, and this will require them to play their hand carefully to get their share of the kitty.
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© 1992-2003 McKinsey & Company, Inc
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