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Exploring Mobile Gaming Revenues: the Price Tag of Impatience, Stress and Release

Author

Listed:
  • Denis LESCOP

    (Institut Mines-TELECOM, TELECOM Ecole de Management, Paris)

  • Elena LESCOP

    (Institut Mines-TELECOM, TELECOM Ecole de Management, Paris)

Abstract

The mobile gaming industry is growing at a rapid pace. Smartphones, tablets and other mobile devices are new channels to deliver games to customers. However, since the birth of Internet, users have been accustomed to getting things for free. How then are mobile game companies able to make billions € in revenue? What are the main drivers of profitability in this sector? Our objective is to dissect the freemium pricing strategy that is frequently used in the mobile gaming sector. With the help of the case study of Gameloft, we explore the method and the path for converting free into profit by playing with the users' frustration and stress.

Suggested Citation

  • Denis LESCOP & Elena LESCOP, 2014. "Exploring Mobile Gaming Revenues: the Price Tag of Impatience, Stress and Release," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(93), pages 99-118, 1st quart.
    • Handle: RePEc:idt:journl:cs9405
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    File URL: http://repec.idate.org/RePEc/idt/journl/CS9405/CS94_LESCOP_LESCOP.pdf
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    References listed on IDEAS

    as
    1. L. J. Bourgeois, III & Kathleen M. Eisenhardt, 1988. "Strategic Decision Processes in High Velocity Environments: Four Cases in the Microcomputer Industry," Management Science, INFORMS, vol. 34(7), pages 816-835, July.
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    Cited by:

    1. Naixin Zhu, 2023. "Dissertation on Applied Microeconomics of Freemium Pricing Strategies in Mobile App Market," Papers 2305.09479, arXiv.org.

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    More about this item

    Keywords

    Mobile Gaming; Business Model; Pricing.;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

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