Innovate or game over? Examining effects of product innovativeness on video game success

Abstract

In recent years, the video game industry has invested signifcant amounts in the development of innovative elements for its products. However, it is still subject to debate whether these R&D investments always pay of. While prior research has con frmed that enhancing product innovativeness increases business performance in certain industries, corresponding fndings for the video game market are lacking. This might be a result of missing theoretical conceptualizations and adequate empiri cal operationalizations of game innovativeness. Addressing this research gap, this study provides the frst conceptualization and operationalization of game innovativeness, shedding frst light on its performance efects. Based on longitudinal data on 351 computer games, our fndings confrm that innovations in the game’s presentation and principle enhance short-term success, whereas innovations in a game’s storyline can be more of a hindrance than a godsend for companies. However, our results also show that performance efects of game innovativeness diminish over time.