Vide game editors and the choice of their business model

Abstract

The purpose of this study is to present and analysis the sector of video game edition and draw an overview of its issues in terms of business model and monetization. From the conceptual analysis of what is a business model and what it implies in terms of competitive advantage, value chain optimization and innovation management, this study’s aim is to apply it on video game editors’ structure and value chain to see how they manage to create value with their products. At that point, we can show different kind of business models based on two different relevant characteristics of video game field: remuneration model and financial accessibility. Remuneration-based business models exist according to the mod of profitability of a game for the editor. It depends on which technical choice editors made to earn profit from their games. It can be by added content purchase, charged subscription, advertisement and initial new game purchase. We can identify 2 other kinds of business models according to their financial accessibility: Free-to-Play and Pay-to-Play. The first one represents games with a free version available to everybody while the second is the more traditional purchase of the game to play it. All these business models are linked and this study shows that editors can link them to create combinatorial business models. Thanks to a questionnaire proposed to 283 people, this study could analysis the reaction, key factor of success and player sociological aspects for every combinatorial business model. This data is really relevant of the very diversify market of video games.