Better safe than sorry? In search of an internet business model in online entertainment

Abstract

This paper presents an action case study of the process by which the Swedish computer game developer Daydream Software planned, developed, and implemented the business model for its new online game, Clusterball. In particular, the paper explores Daydream's choice between a radical business model and a conservative one for the game. Building on forecasts that "casual gamers" such as academics, business people, middle-aged people, and women would become important for the future growth of the electronic games software industry, Daydream first pursued a radical business model, viewing the game as an "entertainment portal." However, in light of the perceived need of results and release, a more conservative business model, aimed at already experienced gamers, was implemented. In view of this critical choice, there were many different assumptions, beliefs, and opinions about customers, the appropriate choice of technology, and the nature of gaming in general among the staff and management at Daydream. The findings of this paper illustrate the tension between new business models and pre-existing social and technical conditions, and the study provides useful insights into the broader theme of balancing radical and incremental change in developing business-to-consumer commerce. © 2001 by Springer Science+Business Media New York.