InnovativeGames, a video game developer, has seen nearly 20 years of success developing games played on PCs (personal computers) and various game consoles (such as PlayStation, Xbox, etc.). InnovativeGames is known for developing highly complex and technologically advanced games. The games typically involve years of development before they are brought to market. However, the gaming industry has been changing rapidly. InnovativeGames is concerned that they are missing out on opportunities in mobile gaming. Ever since Apples launch of the iPhone over a decade ago, the mobile gaming market has grown dramatically. Up until now, InnovativeGames has not moved into mobile gaming because the companys current game offerings are not well-suited for mobile devices. The companys current games are designed for large screens and require computers and consoles with significant computing power. However, InnovativeGames leadership believes that the company simply cannot afford to miss out on this opportunity. The decision has been made to expand into mobile gaming and develop games for iPhones and Android phones. The company is now facing two options.

(1) First, the company could remain as it is currently structured and invest more heavily in its single R&D department, so that the R&D department can also begin developing games for mobile phones, in addition to continuing their development of games for PCs and consoles.

(2) The second option is to launch a new corporate subsidiary organization (that InnovativeGamesowns and controls). This new subsidiary would focus exclusively on mobile gaming. Please explain what you see as some of the potential benefits and risks of these two different organizational approaches.

Please answer in at least 3 paragraphs