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Innovate or game over? Examining effects of product innovativeness on video game success

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  • Franziska Handrich

    (Saarland University)

  • Sven Heidenreich

    (Saarland University)

  • Tobias Kraemer

    (University of Koblenz–Landau)

Abstract

In recent years, the video game industry has invested significant amounts in the development of innovative elements for its products. However, it is still subject to debate whether these R&D investments always pay off. While prior research has confirmed that enhancing product innovativeness increases business performance in certain industries, corresponding findings for the video game market are lacking. This might be a result of missing theoretical conceptualizations and adequate empirical operationalizations of game innovativeness. Addressing this research gap, this study provides the first conceptualization and operationalization of game innovativeness, shedding first light on its performance effects. Based on longitudinal data on 351 computer games, our findings confirm that innovations in the game’s presentation and principle enhance short-term success, whereas innovations in a game’s storyline can be more of a hindrance than a godsend for companies. However, our results also show that performance effects of game innovativeness diminish over time.

Suggested Citation

  • Franziska Handrich & Sven Heidenreich & Tobias Kraemer, 2022. "Innovate or game over? Examining effects of product innovativeness on video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 987-1002, June.
    • Handle: RePEc:spr:elmark:v:32:y:2022:i:2:d:10.1007_s12525-022-00521-7
    DOI: 10.1007/s12525-022-00521-7
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    Cited by:

    1. Rainer Alt, 2022. "Electronic Markets on platform transformation," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 401-409, June.
    2. Sven Heidenreich & Franziska Handrich & Tobias Kraemer, 2023. "Flawless victory! Investigating search and experience qualities as antecedent predictors of video game success," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-20, December.

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    More about this item

    Keywords

    video games; product innovativeness; game innovativeness; innovation success; degree of newness;
    All these keywords.

    JEL classification:

    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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