2min snip

Gamecraft cover image

Steal This Game (Ep. 1)

Gamecraft

INSIGHT

Innovator's Dilemma in Video Games

  • Traditional video game publishers face the innovator's dilemma with free-to-play models.
  • As development costs rise (now reaching $30-100 million), publishers rely on proven marketing strategies and one-time purchases to recoup expenses.
  • This makes them hesitant to adopt free-to-play, especially for predictable hits like FIFA, which could thrive as subscription services.
  • They prioritize minimizing risk with established models over the potential for higher returns with free-to-play.
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