While iteration has garnered a tremendous amount of interest, particularly among digital startups, this area of inquiry remains severely understudied. To date, we know little about the fundamental tension between iterating with regular rhythms and simply being responsive. Integrating research on strategic rhythms and product innovation, we propose that regular rhythms are preferred when arranging iteration activities due to internal coordination concerns. Further, we theorize that the use of regular iteration rhythms is facilitated when diversifying into multiple platform markets and is weakened when competing in diverse country markets. Our theoretical arguments receive significant empirical support based on analyses of digital startups in the global mobile game industry. This study contributes to the understanding of iteration rhythms as an important innovation strategy. It reconciles the tension between using regular rhythms and being responsive by showing that configuring iteration rhythms is a balancing act of internal coordination and external pressure. Our findings shed light on the ongoing discussion regarding how firms compete on the edge of chaos by using rhythms.