In many ways, it can actually be a huge advantage to enter a market slightly later than your competition.
It's so much easier to make a successful product when you can pull apart something someone else has done and make it better. Doubly so if you actually made it in the first place. Confused?
Well, Red Octane and Harmonix first teamed up back in 2005 to release the original Guitar Hero. This was of course wildly successful, however the duo split up a year later when Red Octane was snapped up by Activision and Harmonix got acquired by MTV.