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
http://blog.flurry.com/bid/77424/Is-it-Game-Over-for-Nintendo-DS-and-Sony-PSP
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
http://www.apple.com/ipodtouch/from-the-app-store/
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 Importfriendly 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 quicklygrowing mobile app
markets
References
Farago, Peter. “Is It Game Over for Nintendo DS and Sony
PSP?” Flurry Blog. <http://blog.flurry.com/bid/77424/Is-itGame-Over-for-Nintendo-DS-and-Sony-PSP>
Apple Inc. “Ipod Touch – See Games and Apps from the App
Store.” < http://www.apple.com/ipodtouch/from-the-app-store>