The game is on: Business Models Based on Partnerships - The case of mobile games in Asian emerging markets

Abstract

Mobile gaming is an emerging industry with promising potential of growth in the Asian emerging markets. The mobile gaming ecosystem falls within the mobile data value network and the success of mobile gaming has strong implications for telecommunication firms operating in these markets. As of date, mobile game developers, telecommunication firms and other stakeholders in the value network are experimenting with their strategies to bring mobile gaming to specific markets. Although global app storefronts have played a vital role in distributing mobile games in the West, the current models of these storefronts limit their accessibility to users in the Asian emerging markets and as such these partnerships cannot be successfully replicated in the Asian emerging markets. Besides, bringing mobile gaming to the Asian emerging markets is even more challenging due to the specific characteristics of these markets, such as technological barriers, cultural differences and user behaviors. Due to the relatively nascent and rapidly advancing nature of the industry, business models within mobile gaming are a relatively unexplored domain in literature. This exploratory study aims to establish fundamental groundwork for the development of business models based on partnerships with specific focus on those markets where mobile gaming is expected to make the highest revenues in the coming years. The study explores in detail the different aspects of the business model framework, namely, value proposition, customer interfaces, infrastructure management and financial aspects. Further it takes into consideration that both the markets and the industry are dynamic. The findings indicate that the business model for bringing mobile gaming to the Asian emerging markets does not translate uniformly across all the countries in this region. Although the business model has to be adapted to each market, it has nonetheless some distinct characteristics. The business model of a telecommunications firm is mainly driven by the value proposition it can offer to its end customers while the business model of game publishers is driven mostly by economic considerations. This study paves the way for formulating hypothesis for future in-depth studies on the topic. It also indicates that the partnerships that telecommunication firms establish, even though not directly with game publishers, may have a pivotal role in enabling the usage of mobile games in the focus markets.

Mobile gaming is an emerging industry with promising potential of growth in the Asian emerging markets. The mobile gaming ecosystem falls within the mobile data value network and the success of mobile gaming has strong implications for telecommunication firms operating in these markets. As of date, mobile game developers, telecommunication firms and other stakeholders in the value network are experimenting with their strategies to bring mobile gaming to specific markets. Although global app storefronts have played a vital role in distributing mobile games in the West, the current models of these storefronts limit their accessibility to users in the Asian emerging markets and as such these partnerships cannot be successfully replicated in the Asian emerging markets. Besides, bringing mobile gaming to the Asian emerging markets is even more challenging due to the specific characteristics of these markets, such as technological barriers, cultural differences and user behaviors. Due to the relatively nascent and rapidly advancing nature of the industry, business models within mobile gaming are a relatively unexplored domain in literature. This exploratory study aims to establish fundamental groundwork for the development of business models based on partnerships with specific focus on those markets where mobile gaming is expected to make the highest revenues in the coming years. The study explores in detail the different aspects of the business model framework, namely, value proposition, customer interfaces, infrastructure management and financial aspects. Further it takes into consideration that both the markets and the industry are dynamic. The findings indicate that the business model for bringing mobile gaming to the Asian emerging markets does not translate uniformly across all the countries in this region. Although the business model has to be adapted to each market, it has nonetheless some distinct characteristics. The business model of a telecommunications firm is mainly driven by the value proposition it can offer to its end customers while the business model of game publishers is driven mostly by economic considerations. This study paves the way for formulating hypothesis for future in-depth studies on the topic. It also indicates that the partnerships that telecommunication firms establish, even though not directly with game publishers, may have a pivotal role in enabling the usage of mobile games in the focus markets.