In East Asia, many of online games rely on a business model that is different from the

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In East Asia, many of online games rely on a business model that is different from the way the video-games industry works in the West. Rather than selling games as shrink wrapped retail products which can then be played on a PC or games console, the Asian industry often gives away the software as a free download and lets users play for nothing. Revenue comes instead from small payments made by more avid players to buy extras for their in-game characters, from weapons to haircuts. In this way, a minority of paying customers subsidizes the game for everyone else. Based on the fact above, discuss the implications for video game firms from the West to market their products in East Asia. Is it possible to apply this model to the West markets? Why or why not?
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Global Marketing management

ISBN: 978-0470505748

5th edition

Authors: Masaaki Kotabe, Kristiaan Helsen

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