Flawless victory! Investigating search and experience qualities as antecedent predictors of video game success

2023 | Electronic Markets | Citations: 0

Authors: Heidenreich, Sven; Handrich, Franziska; Kraemer, Tobias

Abstract: In recent years, video games have been on the rise as entertainment goods, leadi ... Expand

Abstract: In recent years, video games have been on the rise as entertainment goods, leading to a growing interest by practitioners, researchers, and, of course, consumers alike. While a few unusually successful video games produce overall high revenues, most released games struggle to break even. Hence, there is an urgent need to better understand what distinguishes financially successful games from nonsuccessful video games. Accordingly, several researchers have called for investigations into the drivers of the financial success of video games. However, empirical studies within this respect are still lacking. Based on longitudinal data of 351 video games, the current study strives to fill this research gap by investigating the relative importance of potential success factors for the short-term and long-term financial success of video games. The results of multiple regression analyses confirm that search qualities such as brand popularity, reviews, and awards as well as experience qualities such as graphics, sound, and game duration significantly drive financial success in terms of the total number of sold video games in Europe. Consequently, managers in the video game industry can boost their chances for the production of a successful video game by focusing on these factors. Collapse

Topics: video game database system ease of use internet technology missing data

Methods: regression analysis method computational algorithm longitudinal research descriptive statistic statistical hypothesis test

Theories: information theory

Loot Boxes, Problem Gambling, and Problem Gaming: A Critical Review of the Emerging Literature

2023 | Communications of the Association for Information Systems | Citations: 0

Authors: McCaffrey, Matthew

Abstract: The literature studying video game loot boxes is young but growing quickly. Giv ... Expand

Abstract: The literature studying video game loot boxes is young but growing quickly. Given the rapid proliferation of loot box research and its developing influence in public policy, a stocktaking and critical reflection are in order. This paper reviews the emerging literature on loot boxes and problematic behaviors such as problem gambling and problem gaming and describes some challenges facing this research. The main problems involve (1) the availability of relevant and useful data, choice of research subjects, and difficulties of reliable and representative sampling; (2) the use of research tools and methods that fail to take account of the unique characteristics of loot boxes; and (3) neglect of the underlying economic significance of loot box engagement, a necessity for considering the true social impact and the policy implications of loot boxes. Together, these challenges show clearly that loot box research has a long way to go before it can be relied on for practical purposes. The paper concludes by outlining a positive research program with a view to informing policy. Collapse

Topics: loot box database system video game video game addiction information system use

Methods: experiment survey personal interview self reported survey qualitative interview

More than watching: An empirical and experimental examination on the impacts of live streaming user-generated video consumption

2023 | Information & Management | Citations: 0

Authors: Zhang, Yuan; Hua, Lei; Jiao, Yue; Zhang, Jie; Saini, Ritesh

Abstract: Live streaming user-generated video (UGV), a nascent format of crowdsourced cont ... Expand

Abstract: Live streaming user-generated video (UGV), a nascent format of crowdsourced content, has grown massive popularity among social media users and is believed to have substantial potential business influences. However, industry practitioners express concerns regarding this new form on social media platforms and the influences of live streaming UGV consumption lack research. Motivated such, through a uniquely merged dataset from the video game industry, we conduct a series of panel time-series empirical analyses to investigate the business value of live streaming UGV consumption. Further, we propose a conceptual framework based on the sense of com­ munity literature to understand the consequences of live streaming UGV consumption and verify it through several online experiments. This research contributes to the IS literature by shedding light on the influences of emergent crowdsourced content, providing a conceptual framework to existing literature, and offering rich managerial implications and guidelines to managers regarding utilizing live streaming UGVs. Collapse

Topics: video streaming service digital service marketing management organizational value crowdsourcing

Methods: experiment survey parametric test Student's t-test nonparametric test

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

2022 | Electronic Markets | Citations: 11

Authors: Handrich, Franziska; Heidenreich, Sven; Kraemer, Tobias

Abstract: In recent years, the video game industry has invested significant amounts in the ... Expand

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. Collapse

Topics: video game innovation management internet technology website missing data

Methods: partial least squares regression structural equation modeling statistical hypothesis test expert panel PLS tool

Bringing transparency and trustworthiness to loot boxes with blockchain and smart contracts

2021 | Decision Support Systems | Citations: 8

Authors: Carvalho, Arthur

Abstract: The ever-increasing reliance on loot boxes by the video game industry has attrac ... Expand

Abstract: The ever-increasing reliance on loot boxes by the video game industry has attracted scrutiny from consumer groups and regulators. For example, this practice of selling random assortments of virtual items for a price has been criticized for its lack of transparency since, before purchasing a loot box, players do not necessarily know the possible items they can win and the associated probabilities. Even in the rare cases when the list of items and probabilities are available, there are no guarantees that a game is actually using that information when randomly drawing an item, which naturally results in a trust problem. We draw from decision theory to explain the transparency and trust issues faced by loot boxes, and from a recently proposed decision model by Pedersen et al. (2019) to motivate the use of blockchain technology in this context. Following the design science research framework (Peffers et al., 2007), we then explain how loot boxes can be coded as smart contracts running on a blockchain network, and why this solution effectively tackles the transparency and trust problems we mentioned above. We illustrate the use of the proposed smart contract by developing a decentralized application (DApp) that mimics the process of purchasing and opening a loot box. We carefully analyze our solution by considering its computational complexity, accuracy, security, and cost aspects. We further discuss topics related to gover­ nance and deployment so as to help the video game industry with a potential real-life implementation of our solution. Collapse

Topics: loot box blockchain smart contract Ethereum video game

Methods: computational algorithm design artifact design science Pearson's chi squared test of goodness of fit statistical hypothesis test

Theories: decision theory

Manufacturer’s “1-Up” from Used Games: Insights from the Secondhand Market for Video Games

2021 | Information Systems Research | Citations: 0

Authors: Kim, Antino; Saha, Rajib L.; Khern-am-nuai, Warut

Abstract: In contrast to industries of other types of information goods, the video game in ... Expand

Abstract: In contrast to industries of other types of information goods, the video game industry still has a sizable secondhand market for games. This is particularly notable because some of the major gaming-console companies (e.g., Sony and Microsoft) actually possess the ability to annihilate the secondhand market altogether; it appears that those companies have given tacit approval to buying and selling used games. Naturally, the question is, what is the special ingredient in the gaming industry that gives a manufacturer incentive to keep a healthy secondhand market even when it has the technological means to shut it down? In this study, leveraging a game-theoretic model, we investigate the effect of gaming console on a manufacturer’s strategy in the presence of a secondhand market for games. We find that when the manufacturer offers a valuable console that provides utilities in addition to playing games, the secondhand market increases the manufacturer’s profit, and that is not at the cost of consumers; the consumers—as well as the society as a whole—also benefit from the secondhand market. This is in stark contrast with settings where there are no consoles involved or the consoles do not offer any intrinsic value; in such settings, the manufacturer would opt to shut down the secondhand market. In the case with a valuable console, however, the increasing appeal of the secondhand market to consumers may improve the manufacturer’s profit, consumer surplus, and social welfare, all at the same time. We discuss our findings along with managerial and welfare implications. Collapse

Topics: IS economics network effect price management video game consumer surplus

Methods: survey

Theories: game theory

Have We Crossed the Uncanny Valley? Understanding Affinity, Trustworthiness, and Preference for Realistic Digital Humans in Immersive Environments

2021 | Journal of the Association for Information Systems | Citations: 27

Authors: Seymour, Mike; Yuan, Lingyao; Dennis, Alan; Riemer, Kai

Abstract: Developers have long strived to create virtual avatars that are more realistic ... Expand

Abstract: Developers have long strived to create virtual avatars that are more realistic because they are believed to be preferred over less realistic avatars. However, an "uncanny valley" exists in which avatars trigger aversion when they are almost but not quite realistic. We used a field study to investigate whether users had different affinity, trustworthiness, and preferences for avatars with two levels of realism, one that was close to human-realistic and one a cartoon caricature. We observed behavior, conducted one-on-one interviews, and collected survey data from SIGGRAPH conference attendees who either participated in a live discussion session between two avatars in a VR environment, or observed it via 3D VR headsets or on a large screen 2D video display. Eighteen sessions were conducted over four days, with the same person animating the human-realistic avatar and different guests animating the caricature avatars. The guests who interacted with the human-realistic avatar had a positive experience in the VR environment. The observers had positive evaluations of both avatars while acknowledging their different levels of realism. They rated the human-realistic avatar as more trustworthy, had more affinity for it, and preferred it as a virtual agent. Participants who observed the interview through VR headsets had an even stronger affinity for the human-realistic avatar and stronger preferences for it than those who observed via the 2D screen. Effect sizes ranged from medium to large. Our results suggest that it is now possible to cross the uncanny valley with human-realistic avatars rendered in real time. Collapse

Topics: virtual reality artificial intelligence user interface technology adoption information system use

Methods: qualitative interview survey mixed method field study theory development

Theories: uncanny valley theory

Generativity Tension and Value Creation in Platform Ecosystems

2019 | Organization Science | Citations: 102

Authors: Cennamo, Carmelo; Santaló, Juan

Abstract: Platform-based technology ecosystems are new forms of organizing independent act ... Expand

Abstract: Platform-based technology ecosystems are new forms of organizing independent actors’ innovations around a stable product system. This collective organization is proving superior to traditional, vertically integrated systems in many sectors because of greater “generativity”—the ecosystem’s capacity to foster complementary innovation from autonomous, heterogeneous firms—which extends the usage scope and value of the platform to users. However, greater generativity can also lead to greater variance in the way ecosystem members’ contributions satisfy users’ needs, and it could potentially hinder the ecosystems’ value creation. We draw on collective action theory to examine generativity’s impact on user satisfaction and the mechanisms driving it. We argue that products enhancing user satisfaction contribute to a collective, shared asset, the platform system reputation, from which all participants benefit. Thus, generativity has both a positive (system reputation) and negative (free-riding) effect on the ecosystem members’ incentives for developing products that enhance user satisfaction. We argue that the negative free-riding effect prevails as the platform system matures and competition with alternative platform systems increases. Using data from the video game industry, we find supportive evidence for the free-riding effect, which generates an average loss in total revenue for first-rate games of about $36.5 million and a drop of about 3.3% in the console’s market share. By identifying the conditions that exacerbate free riding in platform ecosystems, our study contributes to the understanding of the evolutionary dynamics of platform ecosystems. It also highlights one feedback mechanism governing collective action in ecosystems and its implications for value creation. Collapse

Topics: user satisfaction digital platform digital ecosystem innovation management value creation

Methods: descriptive statistic instrumental variables estimation robustness check econometric modeling theory development

Theories: action theory lemon market theory

“Level Up”: Leveraging Skill and Engagement to Maximize Player Game-Play in Online Video Games

2019 | Information Systems Research | Citations: 0

Authors: Huang, Yan; Jasin, Stefanus; Manchanda, Puneet

Abstract: We propose a novel two-stage data-analytic modeling approach combining theories, ... Expand

Abstract: We propose a novel two-stage data-analytic modeling approach combining theories, statistical analysis, and optimization techniques to model player engagement as a function of motivation to maximize customer game-play via matching in the large and growing online video game industry. In the first stage, we build a hidden Markov model (HMM) based on theories of customer engagement and gamer motivation to capture the evolution of gamers’ latent engagement state and state-dependent participation behavior. We then calibrate the HMM using a longitudinal data set, obtained from a major international video gaming company, that contains detailed information on 1,309 randomly sampled gamers’ playing histories over a period of 29 months comprising more than 700,000 unique game rounds. We find that high-, medium-, and low-engagement-state gamers respond differently to motivations, such as feelings of effectance and need for challenge. In the second stage, we use the results from the first stage to develop a matching algorithm that learns (infers) the gamer’s current engagement state “on the fly” and exploits that learning to match the gamer to a round to maximize game-play. Our algorithm increases gamer game-play volume and frequency by 4%–8% conservatively, leading to economically significant revenue gains for the company. Collapse

Topics: video game analytical information system decision making advertising management collaborative filtering

Methods: computational algorithm robustness check experiment simulation optimization model

Theories: motivation theory self determination theory

The Effects of Co-Creation and Word-of- Mouth on Content Consumption – Findings from the Video Game Industry

2019 | International Conference on Information Systems | Citations: 0

Authors: Poretski, Lev; Zalmanson, Lior; Arazy, Ofer

Abstract: Video games offer users rich experiences that extend beyond the producers’ origi ... Expand

Abstract: Video games offer users rich experiences that extend beyond the producers’ original design, to include complementary products and services that are provided by online communities, namely, ‘mods’ (game modifications) and streaming (live-broadcasting). Notwithstanding their potential benefits, complementary products and services may also negatively affect gamers’ experiences. To date, our understanding of how the interplay between firm-based and community-based platforms shapes consumers’ experiences is limited. Our conceptual framework describes how co-creation (i.e. modding) and wordof-mouth (WoM; i.e. streaming) affect games’ consumption. Our empirical study shows that co-creation: (a) directly increases game consumption and (b) indirectly affects consumption by driving WoM, which in turn increases game consumption. Additionally, two game characteristics – play mode (online multiplayer vs. offline single player) and plot (open-world vs. linear) moderate the relationships between co-creation, WoM, and game consumption. These findings inform our understanding of how consumption of firm-produced online content is affected by activities on community-based complementary platforms. Collapse

Topics: video game participatory design network effect business model marketing management

Methods: design methodology hierarchical linear modeling statistical hypothesis test regression analysis method simulation