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Business Dynamics and Innovation in the Home Video Game IndustryHabbari, Samia, Hidalgo Arreola, Alfredo, Georgieva Petrova, Antoniya January 2010 (has links)
The purpose of this thesis is to present and analyze the innovations in the home video game industry and their impact on the competitive strategies of the companies in the indus-try. The existing literature about business cycles and business dynamics is scarce from busi-ness administrative perspective. This thesis contributes to fill the gap in the academic literature. The choice of the home video game industry has been done, due to its fast growing economic nature and the rapid changes that can be noticed, especially for the last decade. A qualitative research method with secondary qualitative and quantitative data and primary qualitative data through interviews has been used for this thesis. The home video game industry is highly driven by technological product innovations. Incremental innovations do not affect in a significant way the dynamics within the industry. Radical innovations create a competitive advantage through differentiation and they increase market share for the company which followed this strategy. Disruptive innovations open new markets, change the business environment for every firm and generate a shift in consumer preferences. Hence, the company which implements a disruptive innovation gains extensive market share. Innovations are possible due to the strategic orientation a company aims to pursue. If a company pursues a high market orientation and a low inno-vation orientation it manufactures an upgraded product to keep customers satisfied. When the firm pursues a high market and innovation orientation, the final product includes cha-racteristics that the customers desire. While at the same time the product created offers services and features hard to be matched by the competition. Finally, if a firm pursues a high innovation orientation and a low market orientation strategy, it creates an easier and more convenient alternative on the existing products while being cheaper. At the same time this strategic orientation disregards the established customers' desires.The purpose of this thesis is to present and analyze the innovations in the home video game industry and their impact on the competitive strategies of the companies in the indus-try. The existing literature about business cycles and business dynamics is scarce from busi-ness administrative perspective. This thesis contributes to fill the gap in the academic litera-ture. The choice of the home video game industry has been done, due to its fast growing economic nature and the rapid changes that can be noticed, especially for the last decade. A qualitative research method with secondary qualitative and quantitative data and primary qualitative data through interviews has been used for this thesis.The home video game industry is highly driven by technological product innovations. Incremental innovations do not affect in a significant way the dynamics within the industry. Radical innovations create a competitive advantage through differentiation and they increase market share for the company which followed this strategy. Disruptive innovations open new markets, change the business environment for every firm and generate a shift in consumer preferences. Hence, the company which implements a disruptive innovation gains extensive market share. Innovations are possible due to the strategic orientation a company aims to pursue. If a company pursues a high market orientation and a low inno-vation orientation it manufactures an upgraded product to keep customers satisfied. When the firm pursues a high market and innovation orientation, the final product includes cha-racteristics that the customers desire. While at the same time the product created offers services and features hard to be matched by the competition. Finally, if a firm pursues a high innovation orientation and a low market orientation strategy, it creates an easier and more convenient alternative on the existing products while being cheaper. At the same time this strategic orientation disregards the established customers' desires.
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Business Dynamics and Innovation in the Home Video Game IndustryHabbari, Samia, Hidalgo Arreola, Alfredo, Georgieva Petrova, Antoniya January 2010 (has links)
<p>The purpose of this thesis is to present and analyze the innovations in the home video game industry and their impact on the competitive strategies of the companies in the indus-try. The existing literature about business cycles and business dynamics is scarce from busi-ness administrative perspective. This thesis contributes to fill the gap in the academic literature. The choice of the home video game industry has been done, due to its fast growing economic nature and the rapid changes that can be noticed, especially for the last decade. A qualitative research method with secondary qualitative and quantitative data and primary qualitative data through interviews has been used for this thesis. The home video game industry is highly driven by technological product innovations. Incremental innovations do not affect in a significant way the dynamics within the industry. Radical innovations create a competitive advantage through differentiation and they increase market share for the company which followed this strategy. Disruptive innovations open new markets, change the business environment for every firm and generate a shift in consumer preferences. Hence, the company which implements a disruptive innovation gains extensive market share. Innovations are possible due to the strategic orientation a company aims to pursue. If a company pursues a high market orientation and a low inno-vation orientation it manufactures an upgraded product to keep customers satisfied. When the firm pursues a high market and innovation orientation, the final product includes cha-racteristics that the customers desire. While at the same time the product created offers services and features hard to be matched by the competition. Finally, if a firm pursues a high innovation orientation and a low market orientation strategy, it creates an easier and more convenient alternative on the existing products while being cheaper. At the same time this strategic orientation disregards the established customers' desires.The purpose of this thesis is to present and analyze the innovations in the home video game industry and their impact on the competitive strategies of the companies in the indus-try. The existing literature about business cycles and business dynamics is scarce from busi-ness administrative perspective. This thesis contributes to fill the gap in the academic litera-ture. The choice of the home video game industry has been done, due to its fast growing economic nature and the rapid changes that can be noticed, especially for the last decade. A qualitative research method with secondary qualitative and quantitative data and primary qualitative data through interviews has been used for this thesis.The home video game industry is highly driven by technological product innovations. Incremental innovations do not affect in a significant way the dynamics within the industry. Radical innovations create a competitive advantage through differentiation and they increase market share for the company which followed this strategy. Disruptive innovations open new markets, change the business environment for every firm and generate a shift in consumer preferences. Hence, the company which implements a disruptive innovation gains extensive market share. Innovations are possible due to the strategic orientation a company aims to pursue. If a company pursues a high market orientation and a low inno-vation orientation it manufactures an upgraded product to keep customers satisfied. When the firm pursues a high market and innovation orientation, the final product includes cha-racteristics that the customers desire. While at the same time the product created offers services and features hard to be matched by the competition. Finally, if a firm pursues a high innovation orientation and a low market orientation strategy, it creates an easier and more convenient alternative on the existing products while being cheaper. At the same time this strategic orientation disregards the established customers' desires.</p>
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All your returns are belong to us : An exploratory study of how industry characteristics affect investments in the Swedish video game sectorLundström, Kristofer, Smedsaas, Arvid January 2016 (has links)
Being relatively young, the Swedish video game industry has experienced explosive growth in recent years, surpassing several traditional industries. Exemplified by the purchase of King for approximately three times the price of Volvo, and the fact that one in ten people on the planet has played a Swedish video game. This development notwithstanding, the industry remains academically unexplored, suffering high rates of failure among new businesses, and for many companies, access to capital is problematic. In many ways a unique industry; Reversing traditional business models. involving the community, their customers, during pre-, mid- and post-production combined with companies being born global. Therefore, traditional tools for financial analysis, such as profitability ratios, are proving insufficient and the industry is perceived as a risky investment. The study analyzes the underlying variables of such ratios, from the perspectives of uncertainty and risk as well as accounting, considering the unique characteristics of the Swedish video game industry; Providing guidelines for better utilization of the ratios. The authors establish a solid foundation for future studies on the topic and provide investors with useful tools to increase their knowledge of the industry. The findings indicate that due to the abstract nature of the industry, stemming from assets and value creation, financial ratios should be used in tandem with a uncertainty and risk assessment of certain key areas of the industry.
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Community Management - The Role Community Managers Play in the Video Game Industry in SwedenBoström, Pontus, Hansen, Isabell January 2015 (has links)
The video game industry has developed into a multibillion dollar industry. As the rise of social media and other online networks has enabled consumers to more easily express their opinions and critique about the products, these platforms become important when it comes to obtaining customer knowledge. The responsibilities of a community manager includes to obtain this knowledge and share it further with the game developers. Hence, a shared effort between the firm and the online communities of the firm can help create value for the customers in the long run. This study aims to gain a deeper understanding of the community manager's role within the process of transferring information from the communities into knowledge for the company, and also to explore how it differs in different sized companies. Theory regarding knowledge transfer and conversion, as well as customer knowledge management theory have be covered and in addition also theories on online communities. To achieve the aim of the study a qualitative and exploratory research was undertaken by selecting four case companies. Gathering the empirical findings, it became clear that one company had the most interesting community out of the four cases and therefore it became the main focus in the analysis. A community manager’s role is different depending on the company and its size. Larger firms are more concerned with a social media presence and smaller firms are more concerned with maintaining close relationships. Reaching a conclusion, it was clear that the community manager at Expansive Worlds, had several different roles within the process of knowledge transfer, in terms of acquiring, combining, and sharing knowledge.
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Checkpoint : a deconstruction of the video game violence debate and proposed strategies to create solutionsHamilton, Grayson Lee 13 December 2013 (has links)
In the months following the Sandy Hook elementary school tragedy, there has been increased attention and debate regarding violent video games and how they affect those who play them. While some lobby for increased regulation of their sale, others argue that video games are not the reason such tragedies continue to happen.
In this report, I approach the debate from social, personal and political dimensions to better identify the inconsistencies regarding how violent video games are presented to and received by the public. I also interview video game developers, critics, and researchers to uncover solutions and new strategies to increase video game education and perception about the use of violence in a video game. / text
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Pricing and resale market strategy for durable goods : a dynamic equilibrium model of video gamesRo, Joon Hyoung 01 July 2014 (has links)
I study the impact of the used goods market on pricing and profits in the video game industry and the implications of resale restrictions. I develop a modeling framework that incorporates (a) heterogeneous consumers who are forward looking in their buying an selling behaviors, (b) a strategic game producer who prices its products considering both inter-temporal price discrimination and price competition with used goods, (c) rational expectations on future prices by both consumers and the firm, and (d) market equilibria for both new and used-goods markets. Without observing sales data, I use equilibrium pricing solutions in my model and the varying rate of price decrease after a game's release to identify the sales volume of a game in every period as a percentage of its total demand. I develop a computationally tractable utility specification to solve the computational challenge comes with modeling the supply side equilibrium. I construct the demand function for a game from heterogeneous consumers whose valuations distribute on an interval, and partially characterize the consumers' decisions and reduce the dimensionality of the state space. Applying the model to a unique dataset of game prices collected from the Internet, I estimate the game-specific demand for multiple games released in the U.S. market. The results show significant variation across games in terms of shapes of valuation distributions, expected play time, degrees of consumers' preference for new over used games, and price sensitivities. Policy simulations show that the effects of prohibiting resale largely depend on the shape of a game's demand distribution, because most of the profits are gained from higher-valuation consumers who purchase the game when the price is high. Prohibiting resale does not dampen their willingness to pay for the game because their high utility from playing it. Moreover, higher expected future prices in the absence of the used-game market further reduces their incentives to wait. I find the predicted profit increase is significant for most games when reselling is prohibited. However, games with demand consisting mostly of low valuation consumers benefit less from this structural change, because (a) early sales increase only slightly given a much smaller proportion of high valuation consumers and (b) losing the option to resell significantly decreases the willingness to pay for low valuation consumers, forcing the firm to slash its prices dramatically over time. I find empirical evidence that a firm can be better off with the used game market. This suggests that though eliminating the resale market is generally optimal for popular games, retaining it can be more profitable for some games. / text
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Den svenskadataspelsbranschenSöderman, Anton January 2015 (has links)
This paper deals with the Swedish computer and video game industry. The aim is toreach a better understanding of why it has been so successful and why it has seen such a largegrowth during the years 2008-2015. In the paper, this is shown by looking at Sweden’s computerand video game sector as a cluster, as defined by Porter. The analysis is based on a model usingnational systems of innovation. The paper presents a narrative of the development of theSwedish video game industry as well as cases describing specific companies in more detail.The reasons for the growth during the period are found to be primarily three different aspects ofthe sector: (1) success of the Swedish game Minecraft (2) the specific market conditions (3) acycle of growth in the Swedish game industry. The conditions allowing the Swedish gameindustry to be successful are found to be tradition, international focus, the Swedish nationalwelfare system, all supported by well-developed technical educations.
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A chinese view on indie : How is ‘indie’ defined by professionals within the Chinese indie game industry?Bankler, Jon Victor January 2018 (has links)
This study aimed to explore which philosophies and opinions professionals within the Chinese indie game industry hold in relation to the indie concept. Indie is a short form of the word "independence”, and is used to describe certain products and creative practices within media such as video games. The term’s exact definition is however subject to discussion. This study aims to include Chinese game professionals in this discussion. The study was carried out in China through Game Hub Scandinavia (Game Hub Scandinavia, 2018) and in cooperation with Indienova. The participants that were interviewed in this study were all professionals within the Chinese game industry. The research tools developed for these interviews were two playable demos and a survey. The answers provided constituted as basis for the study’s concluding analysis. The data indicated that the Chinese indie developers define indie as a creative endeavour which products and underlying ambitions contrasts the commercially motivated game industry in China. / <p>2018-08-23 14:25, G203, svenska</p><p>Högskolevägen 1, 541 28, Skövde</p>
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When the investors choose : Analysis of business models within the Swedish video game industryKnudsen, Kasper, Söderström, Vilhelm January 2021 (has links)
Many Swedish video game companies have in recent years been very successful in terms of share price development. Why is it like that? With the purpose to gain an increased understanding of the investor's choice, we here examine which business models are used in the Swedish video game industry. More specifically, we try to identify what similarities do the business models in the successful companies share and what similarities do the non-performing companies share. The analytical framework used is based on Business Model Canvas adapted to the video game industry. We use a qualitative approach with case studies of 10 listed Swedish video gaming companies, five successful and five non-performing, in terms of share price development. The data collected is from secondary sources, mainly the companies' annual reports, fitting the investors narrative with the assumption that secondary data is generally what influences the stock price.In general, the results suggest that similarities between business models among the successful companies largely coincide with similarities between the non-performing companies, which makes the information less valuable for understanding investors' choices. Nevertheless, one unique similarity among successful companies applies to that they in general have broad gaming portfolios that target several unrelated customer segments, i.e. a diversified market. The non-performing companies instead mainly target a niche market. Another unique similarity among successful companies’ business models concerns their use of acquisition strategies. In the non-performing companies' business models, acquisition strategies are largely lacking.
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Is it game over for physical retailers? : A study on Swedish video game industryFarhana, Mosarrat, Swietlicki, Daniel January 2020 (has links)
Purpose - The purpose of this study is to extend the understanding of the business model of video game retailers using online and physical stores focusing on the impact of digital platforms on the retailing industry within the context of video game industry considering different actor’s perspectives like retailers and consumers. Design/methodology/approach - This is a multiple-case study based on deductive reasoning. In this qualitative study, two cases of click-and-mortar retailers operating in the Swedish video game industry have been considered along with feedback from customers. Online personal interviews and semi-structured interviews have been conducted with retailers and customers respectively. Both primary and secondary data have been used to conduct the study. Findings - Findings show that video game retailers need to encourage engagement through incentives and other activities in order to create value and change up their formats and sales strategies through pricing to reach new customers and focus on design of their online store fronts to convey trustworthiness. Research limitations - A major limitation has been the COVID-19 pandemic spreading during the writing of this paper, which resulted in companies backing out to refocus their efforts. Another limitation has been the legal aspect as companies owned by bigger publishers denied to take part in the study to avoid revealing sensitive information. Practical implications - It offers some insightful practical suggestions to retailers who are struggling hard to adopt digital transformations in the industry. Originality - Authors’ proposed research model, based on Sorescu et al. (2011)’s retail business model and the empirical findings, contribute in the less explored domain of research on business models from retailer’s perspectives. Moreover, it adds values in industry specific study like the video game industry in Sweden considering all actors, which is argued as scarce.
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