New Business Models for the Computer Gaming Industry

Abstract

Nowadays, managers in the computer and video gaming industry are forced to reevaluate their companies’ strategic position within the value-added chain, as traditional business models show a tendency to erode. While there are some striking parallels to the music industry, like facing the threat of acts of piracy, indicating what future developments might be expected, there are also best practice examples from the computer and video gaming industry to learn from. Thus, it is imperative to have a look at the changes in competitive settings within this industry and analyze adequate examples regarding how to setup new profitable business models. In order to evaluate the changed business models in a meaningful way a systematic approach is advisable. Therefore, a short ontology of business models is given first, supporting the illustration of recent developments in the industry and which will guide the presentation of selective cases. Three major implications for managers in the computer and video gaming industry will be identified. These include a need to centralize the game experience, a stronger shift towards online distribution channels and the development of a collective sense of identity by target communities.