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Developing Business Models in the Video Game Industry: An evaluation to strategic choices made by small and medium-sized development studios
Jönköping University, Jönköping International Business School, JIBS, Business Informatics.
Jönköping University, Jönköping International Business School, JIBS, Business Informatics.
2012 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Digitalization has given rise to new opportunities for small and medium-sized video game development studios. No longer bound by physical products and creative restrains, the de-veloper has been empowered with independency. This qualitative study is aimed to under-stand how a development studio develops their business model and how underlying strate-gy is formulated. Additionally we evaluate the degree of innovativeness of the business model in terms of radical and incremental innovation according to Damanpour (1991). To achieve this we present a comprehensive literature review as to gain a more theoretical un-derstanding of industry mechanics and to be able to comprehend reasoning behind existing business models. We structure the dynamics of the business model by analyzing nine busi-ness model aspects as suggested by Osterwalder, Pigneur and Clark (2010). Following our theoretical framework we gain practical input from four separate case studies. An interpret-ative research method is used to gain better understanding of reasoning and choices made. We interpret our findings following a narrative approach which shows that the digitaliza-tion has preluded a paradigm shift in the sense that development studios have started to adopt activities otherwise performed by key partners. As barriers dissipate small and me-dium-sized development studios try to make sense of the current industry, but struggle in doing so. Having to reinvent themselves we conclude that a focus towards creating thicker customer relationships is considered and the idea of seeing games as a service is acknowl-edged to depict the future of the industry. The conclusions of this study contribute to both academic science and industry practice.

Place, publisher, year, edition, pages
2012. , 111 p.
Keyword [en]
Video Game Industry, Video Games, Business Models, Independent Business Model Development, Digitalization, Paradigm Shift
National Category
Other Computer and Information Science
URN: urn:nbn:se:hj:diva-18618OAI: diva2:536577
Subject / course
IHH, Informatics
2012-06-15, B4051, Jönköping, 10:00 (English)
Available from: 2012-07-06 Created: 2012-06-22 Last updated: 2012-07-06Bibliographically approved

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