Product differentiation in video games: A closer look at Fortnite's success

Karl-Heinz Moritz, Timo Schöber and Georg Stadtmann

No 419, Discussion Papers from European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics

Abstract: Fortnite is the most successful video game in terms of revenues generated. Since it belongs to the 'free-to-play games', the company has to optimize the in-game-shop to generate revenues. Product dif- ferentiation is one possibility to optimize the profitability of the game. In this paper, we use a microeconomic approach in order to highlight the implications of product differentiation for the profit maximization problem.

Keywords: Fortnite; gaming; Freemium; product di erentiation; market segmentation (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-com and nep-cul
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:euvwdp:419

DOI: 10.11584/opus4-698

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