The impact of strategic core-component reuse on product life cycles

  • The mobile games business is an ever-increasing sub-sector of the entertainment industry. Due to its high profitability but also high risk and competitive atmosphere, game publishers need to develop strategies that allow them to release new products at a high rate, but without compromising the already short lifespan of the firms' existing games. Successful game publishers must enlarge their user base by continually releasing new and entertaining games, while simultaneously motivating the current user base of existing games to remain active for more extended periods. Since the core-component reuse strategy has proven successful in other software products, this study investigates the advantages and drawbacks of this strategy in mobile games. Drawing on the widely accepted Product Life Cycle concept, the study investigates whether the introduction of a new mobile game built with core-components of an existing mobile game curtails the incumbent's product life cycle. Based on real and granular data on the gaming activity of a popular mobile game, the authors find that by promoting multi-homing (i.e., by smartly interlinking the incumbent and new product with each other so that users start consuming both games in parallel), the core-component reuse strategy can prolong the lifespan of the incumbent game.
Author:Cristina Mihale-WilsonORCiD, Patrick FelkaORCiDGND, Oliver HinzORCiDGND, Martin SpannORCiDGND
Parent Title (English):Business & information systems engineering
Publisher:AIS ; Springer Gabler
Place of publication:Atlanta, Georgia ; Wiesbaden
Document Type:Article
Date of Publication (online):2021/06/23
Date of first Publication:2021/06/23
Publishing Institution:Universit├Ątsbibliothek Johann Christian Senckenberg
Release Date:2022/05/10
Tag:Core-component reuse; Location-based games; Mobile games; Product life cycle
Page Number:5
First Page:223
Last Page:237
Open Access funding enabled and organized by Projekt DEAL.
Dewey Decimal Classification:0 Informatik, Informationswissenschaft, allgemeine Werke / 00 Informatik, Wissen, Systeme / 004 Datenverarbeitung; Informatik
3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft
Licence (German):License LogoCreative Commons - Namensnennung 4.0