3) Based on the reading of Malerba, F. 2007. “Innovation, dynamics and evolution of industries: progress and challenges” International Journal of Industrial Organization, vol. 25, no. 4, pp. 675-699, choose a sector and describe how its structure and current state of emergency influence competition and innovation. Video games have been in high demand over the past decade. Many titles like Call Of Duty and Grand Theft Auto make billions of dollars in profits. (1) What started as a small market in the late 1970s has grown dramatically over the years. Technology has improved so much that a Game Boy Advance that was worth $150 in the early 2000s now falls short compared to the free apps on our phones today. There are iPhone emulators that can play Game Boy Advance games. (2) The structure of the video game industry includes several phases. The first phase is the development phase. (3) There are currently three giants in the gaming world. Microsoft's Xbox 360, Sony's PlayStation 3 and Nintendo's Wii. For these consoles there are companies that enter into agreements to release exclusive games. For example, one company may make games exclusively for the Xbox 360. Another company may make games for a particular series offered by the platform, such as Mario for the Wii. The most common companies are those that create games for all consoles and do not have deals with any particular console. The second phase is the publication phase. (3) Once the game is developed, the company must then market it to the masses. A convention known as E3 (Electronic Entertainment Expo) is held every year. (4) At this conference console representatives and game developers provide background information, trailers and dem...... half of the document ...... extracted November 10, 2013 from http:// www. cultofmac.com/247716/another-game-boy-emulator-sneaks-into-the-app-store/3. Zhou, Z., & Xie, S. (2012). Chapter 7. Fundamentals of digital manufacturing science (pp. 257-260). London: Springer-Verlag London Ltd..4. Electronic entertainment fair. (2013, February 11). Wikipedia. Retrieved November 10, 2013, from http://en.wikipedia.org/wiki/Electronic_Entertainment_Expo5. Call of Duty Ghosts. (n.d.). GameStop. Retrieved November 10, 2013, from http://www.gamestop.com/6. Video games: rent, buy and download video games online - www.gamefly.com. (n.d.). GameFly. Retrieved November 10, 2013, from http://www.gamefly.com/7. Hyman, P. (n.d.). Gamasutra - PC Game Piracy: Why Care About DRM?.Gamasutra - PC Game Piracy: Why Care About DRM?. Retrieved November 10, 2013, from http://www.gamasutra.com/view/feature/1