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Examining the Impact of Video Game Developers' Specialization on Their Success in Platform Ecosystems

Gazmeh, Mohammad Reza | 2024

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 56980 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Miremadi, Iman
  7. Abstract:
  8. In this research, we delve into the challenges video game developers encounter when selecting an appropriate genre for their initial video games. The primary objective of this study is to identify the effective strategies enabling video game developers to successfully enter the competitive market. Within this context, 'success' is quantified by sales volumes and download counts. The video game industry is witnessing rapid growth, with its market size reaching $184 billion in 2023, according to Newzoo report. To address these inquiries, the study uses information from three different platforms, gathering data in a thorough way: PC games on Steam, Android mobile games on the Google Play Store, and console games via VGChartz. This analysis evaluates the trade-offs between specializing deeply in a singular genre against adopting a diversified portfolio spanning multiple genres. Findings indicate that developers achieve optimal outcomes by striking a strategic balance between depth of specialization in a single genre and breadth across multiple genres. Moreover, corroborated by this study and supplementary research, it's evident that the platform choice exerts a differential impact on a game's success trajectory. At first, developers can try out different areas, which lets them take smart risks. This early stage is important because it helps them slowly become experts in one specific area. Such a strategic approach benefits from leveraging initial experiences to inform more precise and effective planning for future projects. Conclusively, this study's insights resonate with and expand upon the principles delineated in David Epstein’s "Range" offering a nuanced understanding of strategic positioning within the video game industry. This is very valuable for both new and experienced developers, helping them succeed in a fast-changing market
  9. Keywords:
  10. Video Games ; Artificial Intelligence ; Specialization ; Econometrics ; Smart Mobile Platforms ; Platform Ecosystems

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