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Product differentiation in video games: A closer look at Fortnite's success

Author

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  • Moritz, Karl-Heinz
  • Schöber, Timo
  • Stadtmann, Georg

Abstract

Fortnite is the most successful video game in terms of revenues generated. Since it belongs to the 'free-to-play games', the company has to optimize the in-game-shop to generate revenues. Product dif- ferentiation is one possibility to optimize the profitability of the game. In this paper, we use a microeconomic approach in order to highlight the implications of product differentiation for the profit maximization problem.

Suggested Citation

  • Moritz, Karl-Heinz & Schöber, Timo & Stadtmann, Georg, 2020. "Product differentiation in video games: A closer look at Fortnite's success," Discussion Papers 419, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    • Handle: RePEc:zbw:euvwdp:419
    DOI: 10.11584/opus4-698
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    References listed on IDEAS

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    1. Schöber, Timo & Stadtmann, Georg, 2020. "Fortnite: The business model pattern behind the scene," Discussion Papers 415, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
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    Cited by:

    1. Goumagias, Nikolaos & Fernandes, Kiran Jude & Nucciarelli, Alberto & Li, Feng, 2022. "How to overcome path dependency through resource reconfiguration," Journal of Business Research, Elsevier, vol. 145(C), pages 78-91.

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    1. Georg Stadtmann & Christian Pierdzioch & Timo Schöber, 2020. "Law of one price: BigMac versus Fortnite - A Note," Economics Bulletin, AccessEcon, vol. 40(4), pages 3338-3348.

    More about this item

    Keywords

    Fortnite; gaming; Freemium; product di erentiation; market segmentation;
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