Business Model Innovation in The Videogame Industry at Microsoft’s Xbox Division
School of Business | Bachelor's thesis
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(Mikkeli) Bachelor’s Program in International Business
AbstractObjectives Given the increased volatility and changing nature of the world, large incumbent firms are facing more pressure to adapt and adjust to market changes. The topic of this paper is business model innovation (BMI) as it helps ensure firms remain competitive. Thus, this paper endeavors to answer, “how did business model innovation, specifically that of cloud-powered subscription-based gaming, occur at Microsoft’s Xbox division?”. Summary This paper posits strong leadership, presence of intrapreneurship, a motivated workforce, readiness to improve and, belief in the viability of the resulting business model as internal antecedents of BMI. While the external antecedents potentially being readiness of external stakeholders’ acceptance, existence of lucrative opportunities, fear of late mover disadvantages and availability of required technologies. The case study also suggests improved firm performance and strategic position as outcomes of BMI. Additionally, numerous macro-level and firm-level moderators were also identified in this paper’s research. Conclusions This paper concludes that the business model innovation process at Microsoft’s Xbox division was complex, paced and conducted by capable leadership which improved Xbox’s strategic position and provided it with a competitive advantage.
Thesis advisorHassan, Lobna
business model innovation, Microsoft, Xbox, videogame industry, antecedents, outcomes, moderators, Xbox Game Pass