Business models and strategies in the video game industry : an analysis of Activision-Blizzard and Electronic Arts

In recent years the video game industry has been of great importance in the business world beyond the role of a cultural medium. With its huge size and potential for more growth, the industry has attracted many newcomers. The target customers are expanding to females and elders who have not been known to be game players. Moreover, the introduction of new platforms, personal computers and mobile devices, broadens the application of the video games. Because of its diversified mechanisms and platforms, the business models of the gaming industry have evolved. In this thesis, the traditional and newly invented business models are introduced with an analysis of pros and cons through real cases of gaming companies. The analysis of Activision-Blizzard and Electronic Arts shows the current business strategies of two giants in the industry, "diversification" and "casual games". Moreover, the huge difference of financial performances of two companies indicates the risk of an overbroad portfolio and investment in an unfamiliar genre.

Department dc:contributor.department

Sloan School of Management

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2013

Author dc:creator

• Lee, Ruri

Advisor dc:contributor.advisor

• Michael A. Cusumano.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/81088

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/81088