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  2.9. Charles Huang of RedOctane on the Risks of Innovation (10 min.)

Charles Huang was the co-founding Chief Operating Officer (COO) of RedOctane, an American electronic entertainment company perhaps best known for producing the Guitar Hero series, which generated over $1 billion in sales in 26 months from its first release.

In this video, Huang explains how the company kept its innovation risks low over time by initially doing business in small, low-risk vertical segments, and over time, entering riskier segments (i.e., horizontal expansion) as the company's cash position improved.