2014•RePEc: Research Papers in EconomicsOpen access

'Few to Many': Change of Business Model Paradigm in the Video Game Industry

Thierry Rayna, Ludmila Striukova

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Abstract

Based on an exhaustive and integrated business model framework, this article examines the critical differences between the two main business model paradigms – the one inherited from PC/console games and the one promoted by mobile and online games – in regard to the five main business model components: value proposition, value creation, value delivery, value capture and value communication. It is found that, despite an increasingly tighter integration of the market, significant differences remain between the two paradigms in most components.

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What this paper is about

Based on an exhaustive and integrated business model framework, this article examines the critical differences between the two main business model paradigms – the one inherited from PC/console games and the one promoted by mobile and online games – in regard to the five main business model components: value proposition, value creation, value delivery, value capture and value communication. It is found that, despite an increasingly tighter integration of the market, significant differences remain between the two paradigms in most components.

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Available abstract

Based on an exhaustive and integrated business model framework, this article examines the critical differences between the two main business model paradigms – the one inherited from PC/console games and the one promoted by mobile and online games – in regard to the five main business model components: value proposition, value creation, value delivery, value capture and value communication. It is found that, despite an increasingly tighter integration of the market, significant differences remain between the two paradigms in most components.

Key concepts: Value proposition, Business model, Value (mathematics), Proposition, Value capture, Business value, Value creation, Business Model Canvas

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