Diversification

Expansion into New Markets

Game developers and publishers are continually exploring new markets and platforms to expand their audience base. This strategy of diversification aids in risk management and growth.
The emergence of mobile gaming has been a significant area of expansion. Companies like Supercell, with games like Clash of Clans, have earned substantial success in this space.
Another emerging market is Virtual Reality (VR) gaming. With leading technology companies like Oculus and Sony investing in VR, this market has the potential to transform the gaming landscape.

One key method of diversification involves creating a broad range of game genres. Companies try to cater to diverse gaming preferences, whether that be action-adventure, puzzle, sports, or simulation games.
Downloadable Content (DLC) is another strategy used by developers to diversify their offerings, providing additional game content post-launch. This not only extends the life of the game but provides additional revenue streams.

Developers and publishers also pursue diversification through merchandising and licensing strategies. Creating products like action figures, board games, clothing, and other merchandise related to their games, expands their reach beyond the digital sphere.
Licensing popular video game IPs for movies and television series are also common. Examples include the ‘Assassin’s Creed’ and ‘Resident Evil’ film franchises, and the critically acclaimed ‘The Witcher’ series on Netflix.

Cross-media convergence, combining different forms of media to promote a game or franchise, is another way companies diversify their operations. It can include tactics like releasing comic books or novels based on a game’s universe or partnering with artists to release game soundtrack albums.

Game developers and publishers often collaborate with other industries, including film, music, and sports, to diversify their content offerings. This can result in unique game features, promotion strategies, and tie-in merchandise.
For example, collaborations with music artists can result in live virtual concerts within the games, like when Fortnite hosted a Travis Scott concert.