Viability of business models in the gaming industry

Abstract

Technological advancements and innovation lead to new methods in offering value to customers. The gaming industry applies innovative methods to already established ones, creating a pool of choices when providing a value offer. This research aimed to analyse business models to evaluate their characteristics, benefits, and downsides to define which model would be sustainable for the future. The research done in this thesis is of explorative and qualitative nature, aided by utilization of the business model canvas and SWOT analysis. The BMC analysis determines the features of each model while the SWOT analysis supports the findings to reach the goal of the research. Analysing the approaches of the business models showcases the differences between them. The type of value offer and the chosen distribution channels require partnering with external parties, which affects the budgeted costs. Determining the strengths and weakness of those choices, paired with the assessment of external threats and opportunities are key elements to be considered when reaching the decision on the business model. The thesis concludes that the physical model is not optimised with the trends of the gaming industry, while the free-to-play model has many similarities to the digital and subscription models but with more threats and weaknesses. The digital and subscription models are the