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Paid and Free Digital Business Models Innovations in the Video Game Industry

Author

Listed:
  • Myriam DAVIDOVICI-NORA

    (Institut Mines-Telecom/Telecom-ParisTech, Paris)

Abstract

Digitalization of distribution has led to the creation of a broad range of digital business models in the video game industry among them freemium, subscription, advertisement, free-to-play. What are the borders of each model and on what economic grounds can we compare them? This paper proposes an interdisciplinary approach based on microeconomics and on business models literature to provide insights into the components and the economic architecture in paid and free business models. This framework enables also to understand recent hybrid paid and free business models in the video game industry.

Suggested Citation

  • Myriam DAVIDOVICI-NORA, 2014. "Paid and Free Digital Business Models Innovations in the Video Game Industry," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 83-102, 2nd quart.
    • Handle: RePEc:idt:journl:cs9404
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    Citations

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    Cited by:

    1. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 0. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 0, pages 1-16.
    2. Nam, Kyungjin & Kim, Hye-jin, 2020. "The determinants of mobile game success in South Korea," Telecommunications Policy, Elsevier, vol. 44(2).
    3. Giuditta DE PRATO & Claudio FEIJÓO & Jean-Paul SIMON, 2014. "Innovations in the Video Game Industry: Changing Global Markets," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(94), pages 17-38, 2nd quart.
    4. Chandna, Vallari & Salimath, Manjula S., 2018. "Peer-to-peer selling in online platforms: A salient business model for virtual entrepreneurship," Journal of Business Research, Elsevier, vol. 84(C), pages 162-174.
    5. Matti Mäntymäki & Sami Hyrynsalmi & Antti Koskenvoima, 2020. "How Do Small and Medium-Sized Game Companies Use Analytics? An Attention-Based View of Game Analytics," Information Systems Frontiers, Springer, vol. 22(5), pages 1163-1178, October.
    6. Lehtonen, Miikka J. & Vesa, Mikko & Harviainen, J. Tuomas, 2022. "Games-as-a-Disservice: Emergent value co-destruction in platform business models," Journal of Business Research, Elsevier, vol. 141(C), pages 564-574.
    7. Shinichi Yamaguchi & Kotaro Iyanaga & Hirohide Sakaguchi & Tatsuo Tanaka, 2017. "The Substitution Effect of Mobile Games on Console Games: An Empirical Analysis of the Japanese Video Game Industry," The Review of Socionetwork Strategies, Springer, vol. 11(2), pages 95-110, December.
    8. J. Tuomas Harviainen & Janne Paavilainen & Elina Koskinen, 2020. "Ayn Rand’s Objectivist Ethics Applied to Video Game Business," Journal of Business Ethics, Springer, vol. 167(4), pages 761-774, December.
    9. Lassila, Erkki M., 2022. "“Free”-to-play game: Governing the everyday life of digital popular culture," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 87(C).
    10. Sánchez-Cartas, J. Manuel, 2022. "Welfare and fairness in free-to-play video games," Technological Forecasting and Social Change, Elsevier, vol. 180(C).

    More about this item

    Keywords

    free-to-play; pay-to-play; video games; business model; innovation.;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • Z1 - Other Special Topics - - Cultural Economics

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