"From day one our next generation system will run all our exsisting software - so that gives us a head start"
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Trip Hawkins distills a core truth of platform battles: hardware alone does not win; software ecosystems do. Promising that a next generation system will run all existing software speaks to backward compatibility as a strategic lever. It preserves the value of an installed library, reassures consumers that their past purchases will continue to matter, and gives developers an immediate market without waiting for a fresh slate of titles. The chicken-and-egg problem that plagues new platforms is softened because utility is present on day one.
Coming from the founder of Electronic Arts and later The 3DO Company, the line reflects a software-first philosophy. Hawkins built his career on the belief that great games and the creators behind them drive demand. If a new machine inherits a working catalog, it launches with proof of value and avoids the early drought that can doom hardware. Retailers have inventory to sell, early adopters have something to play, and studios can graduate gradually to new capabilities while sustaining revenue from their backlist. That continuity compounds network effects: more content attracts more users, which attracts more content.
There is also an economic subtext. Compatibility reduces switching costs and protects sunk investment, making migration a rational choice rather than a leap of faith. It buys time for developers to learn new tools and for hardware makers to refine SDKs, while letting marketing focus on improvements rather than pleading for patience. The tactic is visible in many successful transitions, from PlayStation 2 running PlayStation titles to later console generations that leaned on partial compatibility to seed their ecosystems.
Hawkins hints at the trade-off too, even if implicitly. Designing around legacy software can constrain radical change. But in the brutal early innings of a platform launch, momentum matters more than purity. A head start is not just being earlier to market; it is arriving with a library, a community, and a business model already in motion.
Coming from the founder of Electronic Arts and later The 3DO Company, the line reflects a software-first philosophy. Hawkins built his career on the belief that great games and the creators behind them drive demand. If a new machine inherits a working catalog, it launches with proof of value and avoids the early drought that can doom hardware. Retailers have inventory to sell, early adopters have something to play, and studios can graduate gradually to new capabilities while sustaining revenue from their backlist. That continuity compounds network effects: more content attracts more users, which attracts more content.
There is also an economic subtext. Compatibility reduces switching costs and protects sunk investment, making migration a rational choice rather than a leap of faith. It buys time for developers to learn new tools and for hardware makers to refine SDKs, while letting marketing focus on improvements rather than pleading for patience. The tactic is visible in many successful transitions, from PlayStation 2 running PlayStation titles to later console generations that leaned on partial compatibility to seed their ecosystems.
Hawkins hints at the trade-off too, even if implicitly. Designing around legacy software can constrain radical change. But in the brutal early innings of a platform launch, momentum matters more than purity. A head start is not just being earlier to market; it is arriving with a library, a community, and a business model already in motion.
Quote Details
| Topic | Vision & Strategy |
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