The Free-to-play business model’s fit: For the Danish computer games industry

Andreas Jes Sørensen

Student thesis: Master thesis

Abstract

The purpose of this thesis is to explore what possibilities the free-to-play model has to offer the Danish computer games industry in search of a way to make the developers less dependent on large conglomerate publishers. In order to reach any conclusions within this field, the nature and definitions of business models are examined and choices are made with regards to being able to illustrate the free-to-play model’s dynamics. To understand the concept of free-to-play one must first understand where it comes from, what characterizes it and how it compares to some of the more conventional models. The closing of the thesis consist of a section focused on how the freeto- play model fits the Danish computer games industry and a discussion of how it aids the developers in becoming more independent. Finally, a discussion of whether or not the chosen business model approach can properly illustrate the dynamics of a free-to-play model is presented. The thesis is based on data retrieved through face to face interviews, phone interviews and e-mail interviews, through extensive research on the internet and books. The key findings of the thesis points to that there is still a need of changes being made within the Danish computer games industry, in order for the free-to-play business model to function adequately, despite the fact that the model has good conditions to work in many areas. The key findings also call for a general understanding from investors and the industry to understand the complex demands of the free-to-play business model. Furthermore, the key findings stress the importance of the Danish computer games developers being able to understand business dynamics and take advantage of the possibilities the free-to-play business model to become more independent. Finally, the keys findings concerned with the usability the chosen business model conclude that the approach used in the thesis partly succeeds to do so. However, it falls short in terms of being able to illustrate the underlying numbers and figures that are needed to justify the setup of a free-to-play business model.

EducationsMSocSc in Management of Creative Business Processes , (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2010
Number of pages123