Backlash and Sale: A Case Study on Corporate Image and Profitability of Video Game

Abstract

Video game industry has rise rapidly. Platforms such as X (formerly known as Twitter), Facebook, TikTok and Reddit has reached millions of users. Many video game developers have implemented social media as a tool of marketing and maintaining PR with its user base. Combining with more integrated marketing campaign and continuous engagement with its user base, corporate image of video game company can lead to consumer loyalty and therefore, effect profitability of the product. This could also backfire in developers stead, as consumers are now more aware of their product than ever before. The existence of streaming and video sharing platform such as Twitch and YouTube means consumers can have a clear understanding of the product by watching other people play. Player may also form online community to share the praise or concern of existing product. Many controversial video games produced in recent years have received very different consumer feedback. Some, despite the initial backlash, remain commercially successful, while other faces dire consequences that damage both short-term and long-term profitability. The purpose of this research is to analyze various cases of video game sale when the developer company is under scrutiny by stakeholders due to questionable business or CSR practices. The aim is to understand the relation between a damaged reputation or corporate image and the tangible commercial feedback from the consumers in the context of video game industry.