• Journal of Korea Game Society
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• v.8 no.4
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• pp.29-43
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• 2008

The virtual world is a cyber gaming space where a player interacts with others through their avatars. It is now mainly developed in foreign countries including USA, Canada, and Europe and many experts say that the market capacity of virtual world will be continually expanded in worldwide. The virtual world will mostly be made such that a user accesses the world for free and pays for in-game activities. But it is hardly that we find the effective methodology of payment system for such virtual world due to its' short development history. In the case of Korea, various payment methods of selling in-game assets have been tested in online games. The paper propose an effective revenue model for social virtual world focused on selling in-game assets. The guideline of the proposed revenue model will be expected to contribute creating revenue focused on selling in-game assets, effectively for social virtual world.

• Industrial Engineering and Management Systems
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• v.12 no.3
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• pp.207-223
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• 2013

Revenue management (RM) has been widely used to model products characterized as perishable. Classical RM model assumed that price is the sole factor in the model. Thus price adjustment becomes a crucial and costly factor in business. In this paper, an optimal pricing model is developed based on minimization of soft customer cost, one kind of price adjustment cost and is solved by Lagrange multiplier method. It is formed by expected discounted revenue/bid price integrating quantity-based RM and pricing-based RM. Quantity-based RM consists of two capacity models, namely, booking limit and overbooking. Booking limit, built by assuming uncertain customer arrival, decides the optimal capacity allocation for two market segments. Overbooking determines the level of accepted order exceeding capacity to anticipate probability of cancellation. Furthermore, pricing-based RM models occupancy/demand rate influenced by internal and competitor price changes. In this paper, a mathematical model based on game theoretic approach is developed for two conditions of deterministic and stochastic demand. Based on the equilibrium point, the best strategy for both hotels can be determined.

• Journal of the Korea Convergence Society
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• v.9 no.6
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• pp.163-173
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• 2018

This study aims to diagnose and analyze the business model of domestic e-sports industry and draw its implications. In-depth interviews with business executives of the e-sports teams, the e-sports media, the e-sports stadium and the game companies was had to identify the cost and revenue of each e-sports industry. The results was that the revenue of the e-sports team, stadium and game company mainly consisted of the sponsorship of the parent company. And main revenue of e-sports media was advertising, subscription fees and copyright income, whereas their expenses was the production costs. Especially the purpose of sponsorship of the game companies was not the profit of e-sports, but the promotion of the parent company game. Result implies the necessity of the development of revenue sources, executing the admission ticket charge in stadium and the development of new sponsorship. This study is expected to contribute to opening the new area of the business model of the e-sports industry that was not nearly so far treated, and consequently the development of the e-sports industry in Korea.

• Industrial Engineering and Management Systems
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• v.8 no.4
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• pp.221-227
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• 2009

There are customer services jointly provided by two facilities so that each customer will complete the course made up of both facilities' sub-services. The two facilities are assumed invested respectively by an infrastructure owner and one subordinate facility owner, whose partnership is built on their capital investments. This paper presents a mathematical model of Stackelberg competition between the two facility owners to derive their optimal Nash equilibrium. In this study, each facility owner's profit is consisted of fixed revenue fractions of sold services, operating costs (including depreciation cost) and maintenance costs of her facility. The maintenance costs of one facility are incurred both by failures and deterioration due to usage. Moreover, for both facilities, failures are rectified immediately by minimal repairs and preventive maintenance is carried out at a fixed time epoch. Additional assumptions are also employed to develop the model such as customer arrivals are manipulated to follow a Poisson process, and each facility's lifetime is independently Weibull-distributed. The Stackelberg game proceeds as follows. At the first stage of decision making process, the infrastructure owner (acting as a leader) decides the allocation of revenue shares based on her self-interest. After observing the allocation of revenue shares, the subordinate facility owner determines her own optimal price of services. This paper investigates actions and reactions of the two partners in the system. Then analytical conditions are proposed to achieve a unique optimal Nash equilibrium. Finally, some suggestions for further research are discussed.

• Journal of Digital Convergence
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• v.10 no.10
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• pp.457-463
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• 2012

Social network game (SNG) literally is a game based on the relationship between social network or Relationships with people is an important element in the game you need to make full use of them is that you can smooth progress. The form of a social network game activities in the social network game applications by linking corporate products and can be induced to purchase marketing and advertising through in-game social network game on the company's Web site or by connecting the mall and shop are also available. In this study, SNG business models, Case For game development, social commerce based on the new proposed future revenue model linking scheme is proposed.

• Journal of Korean Institute of Industrial Engineers
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• v.39 no.4
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• pp.260-270
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• 2013

This paper proposes a strategic portfolio model for managing performance of online games. The portfolio matrix is composed of two dimensions: financial performance and non-financial performance. Financial performance is measured by the conventional measure, average revenue per user (ARPU). In terms of non-financial performance, five non-financial key performance indicators (KPIs) that have been widely used in the online game industry are utilized: RU (Register User), VU (Visiting User), TS (Time Spent), ACU (Average Current User), MCU (Maximum Current User). Data envelopment analysis (DEA) is then employed to produce a single performance measure aggregating the five KPIs. DEA is a linear programming model for measuring the relative efficiency of decision making unit (DMUs) with multiple inputs and outputs. This study employs DEA as a tool for multiple criteria decision making (MCDM), in particular, the pure output model without inputs. Combining the two types of performance produces the online game portfolio matrix with four quadrants: Dark Horse, Stop Loss, Jack Pot, Luxury Goods. A case study of 39 online games provided by company 'N' is provided. The proposed portfolio model is expected to be fruitfully used for strategic decision making of online game companies.

• Journal of Distribution Science
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• v.14 no.4
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• pp.47-53
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• 2016

Purpose - The objective of this study is to investigate the dynamic relationships among Advertising Cost (AD), Newly Registered Users(NRU), and Buying Users(BU) of Social Network Game(SNG). SNG is getting pervasive mainly due to the rapid growth of mobile game and Social Network Service(SNS). It would be helpful for marketing researchers interested in SNG and related practitioners to understand the changes in AD, NRU, and BU with time as well as the effects on one another in mutual and dynamic way. Research Design, Data, and Methodology - Necessary data were collected from Social Network Game(SNG) company. AD, NRU, and BU are endogenous variables, but new event such as launching (event) and holidays(holiday) are exogenous dummy variables. Vector Auto regression (VAR) model is generally used to examine and capture the dynamic relationships among endogenous variables. VAR model can easily capture dynamic and endogenous relationships among time-series variables. Vector Auto regression with Exogenous variables(VARX) is a model in which exogenous variables are added to VAR. To investigate this study, VARX is applied. Result - By estimating the VARX model, the author finds that the past periods' NRU affect negatively and significantly the present AD, and past periods' BU have a positive and significant impact on the increase of AD. In addition, the author shows that the past periods' AD and BU have a positive and significant effect on the increase of NRU, and the past periods' AD affect positively and significantly BU. While the impact of AD on NRU happens after 3 or 4 days (carryover effect), that of AD on BU comes about within just 1 or 2 days (immediate effect). The effect of BU on NRU can be considered as word of mouth (WOM effect). Therefore, SNG companies can obtain not only the growth of revenue but also the increase of NRU by increasing BU. Through those results, the author can also find that there are significant interactions between endogenous variables. Conclusion - This study intends to investigate endogenous and dynamic relationships between AD, NRU, and BU. They also give managerial implications to practitioners for SNS and SNG firms. Through this study, it is found that there exist significant interactions and dynamic relationships between those three endogenous variables. The results of this study can have meaningful implications for practitioners and researchers of SNG. This research is unique in that it deals with "actual" field data and intend to find "actual" relationships among variables unlike other related existing studies which intend to investigate psychological factors affecting the intention of game usage and the intention of purchasing game items. This study is also meaningful by showing that the increase of BU can be a good strategy for "killing birds with one stone" (i.e., revenue growth and NRU increase). Although there are some limitations related with future research topics, this research contributes to the current research on SNG marketing in the above mentioned ways.

• Journal of Information Technology Services
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• v.22 no.1
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• pp.75-93
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• 2023

The game industry has grown not only by combining them with various technologies also introducing new types of business models such as P2P, F2P, and P2W. Furthermore, games which implemented X2E model with blockchain technology are recently in the spotlight of the public attention. As domestic game companies have also prospect the blockchain games feasible, they are seeking ways to expand their global market share by strengthening the X2E model. Hence, by carrying this new business model out, it is expected to diversify their global revenue stream, which was previously confined to Asia region. This study analyzed the case of companies that have implemented the P2E and C2E models in order to suggest the direction of development for the game platform in Web 3.0 era. The cases of P2E game platform, which constitute of Axie Infinity and Mir 4, encompass the compensation structure, the stabilization mechanism of the in-game token economy, and future strategies regarding blockchain gaming. Likewise, the platform structure, business model, and future growth potential was discussed in terms of C2E scheme, focusing on the ZEPETO and Roblox cases. Based on the above case analysis, this study attempted to provide information on the current limitations and development directions of the P2E and C2E platforms. The current limitations in legal and industrial aspects should be addressed to facilitate the blooming of blockchain and P2E game industry. In addition, the necessity of not only social support also improvement on the technology and social stigma of full-time creators is ought to be emphasized in an effort to encourage the development of C2E platforms.

• Journal of Information Technology Services
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• v.20 no.2
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• pp.77-90
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• 2021

Online and mobile games represent digital entertainment. Not only the game grows fast, but also it has been noted for unique business models such as a subscription revenue model and free-to-play with partial payment. But, a recent revenue mechanism, called a loot-box system, has been criticized due to overspending, weak protection to teenagers, and more over gambling-like features. Policy makers and research communities have counted on expert opinions, review boards, and temporal survey studies to build countermeasures to minimize negative effects of online and mobile games. In this process, speed was not seriously considered. In this study, we attempt to use a big data source to find a way of observing a trend for policy makers and researchers. Specifically, we tried to apply the Word2Vec data mining algorithm to news repositories. From the findings, we acknowledged that the suggested design would be effective in lightening issues timely and precisely. This study contributes to digital entertainment service communities by providing a practical method to follow up trends; thus, helping practitioners have concrete grounds for balancing public concerns and business purposes.

• Journal of Digital Convergence
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• v.13 no.8
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• pp.431-438
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• 2015

Smartphone is popularized, it is a lot of development of the mobile advertising industry, is born many types of mobile advertising. Many developers in the mobile game is the advertised profitable by using the SDK of service companies that service the advertising the launch of free games. Mobile IGA banner, front advertising, we use the ad in the three forms of the front video advertising, each of advertising, have advantages and disadvantages. Although many of the games currently use a full-page ad and front video ads, these ads profitable model is use the user game play time. In order to improve the disadvantage of this method, Commonly used to analyze the three ad revenue model, looking for the element, by using the research result of the previous studies, we have proposed a new advertising Convergence profitable models.