I have a cautionary tale for the leaders of the video game industry. It's intended as a warning against overestimating the competitors you know and underestimating the competitor you don't--specifically, Microsoft. The tale I have in mind is the story of WordPerfect and Lotus. Those two software makers went from major desktop contenders to major has-beens--largely because they concentrated their firepower on each other, instead of practicing what Novell's Ray Noorda called "coopetition" and battling their mutual enemy.
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