Revenue logics of mobile entertainment software: observations from companies producing mobile games

Authors:
Risto Rajala;Matti Rossi;Virpi Kristiina Tuunainen;Janne Vihinen
Affiliations:
Helsinki School of Economics, Department of Business Technology;Helsinki School of Economics, Department of Business Technology;Helsinki School of Economics, Department of Business Technology;Helsinki School of Economics, Department of Business Technology
Venue:
Journal of Theoretical and Applied Electronic Commerce Research
Year:
2007

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Abstract

While growing at a fast phase, mobile gaming industry is facing a transformation both in terms of technical infrastructures as well as business models. At the users' end, formerly preferred specific game consoles are increasingly being replaced by mobile phone platforms. From the game developers' perspective, the new possibilities to distribute games over mobile phone networks as well as over the Internet, affect both the viable partner relationships and possible revenue stream options. In this paper we introduce analytical tools to evaluate business models of software companies producing mobile games. With the help of these tools, we explore and analyze the revenue logics and related product distribution models of four companies producing mobile games to the international market. The results indicate that even though the fast growing market offers a plethora of opportunities to agile software companies, the revenue models are governed by telecom-operators, who are currently reaping the largest benefits from the business.