Impending Impact of the Mobile App Marketplace How GameCave.com Can Adapt and Thrive in the Face of the New Games Industry Created by Nicholas Marchand

Abstract  This presentation will analyze the impact of the growing mobile application marketplace on GameCave.com, a fictional specialist e-commerce website, and recommend ways the site can adapt. Game Cave sells video games for Windows and Macintosh PCs, the major game consoles, and the major game handheld devices.

The Growth of Mobile Gaming Mobile Game Sales from the iOS (Apple) and Android mobile application storefronts has increased fourfold over the last three years. Combined iOS/Android Game Revenue  2009: $500 million  2010: $800 million  2011: $1.9 billion

The Growth of Mobile Gaming

How can we meet the challenge of this emerging market?

Our Strengths  Higher budget games on more traditional platforms offer game types unmatched by those on the mobile market.  Customer Service staff make it easier to retain customers, compared to many mobile apps  Higher quality products due to quality control required by console and handheld manufacturers (Nintendo, Sony, Microsoft)  Many customers still prefer to own physical copies of their games  Shipping partnerships give us international reach

Potential Weaknesses  Price Point  Inherent Costs are higher with physical goods  Pressing discs, packaging, shipping  Impulse Purchase Gap  Mobile devices allow for near-instant purchase-to-play timing  $0.99 might as well be free  Volume of Content  Smaller budgets mean more, smaller titles to choose from  100,000+ “game and entertainment titles” on the iOS App Store alone

A New Set of Opportunities  Taking advantage of the new mobile app market  Could be new revenue stream instead of competitor  Would give competitive advantage vs other gaming e-commerce companies if we move quickly  Capitalizing on our traditional strengths  International shipping partnerships could lead to expanded worldwide markets for products

If We Do Not Act  Others may find a way to capitalize on the new App culture, leaving us behind  Mobile gaming applications may eventually threaten not just handheld sales, but console game sales as well, shrinking our market

Recommendation: A Two-Pronged Approach Physical Sales  Use our strengths in shipping internationally to reposition as an Import- friendly site for worldwide markets  Cost: translation of web site and need for bilingual CS personnel  Benefit: Much increased worldwide reach Digital Sales  Offer mobile app purchases on GameCave.com through unlock codes provided by game developers  Cost: Outreach to many more small game development teams  Benefit: New revenue stream from quickly- growing mobile app markets

References Farago, Peter. “Is It Game Over for Nintendo DS and Sony PSP?” Flurry Blog. Game-Over-for-Nintendo-DS-and-Sony-PSP Apple Inc. “Ipod Touch – See Games and Apps from the App Store.”