'Game theory in online game market Essay\r'

'In Chinese online crippled market, there are two normal toll strategies, Charging and Free. The Charging message that the customers need to pay for the blue. They need to deal the game client or pay for the playing time (for example: RMB30 for 4000minits or RMB90 for 1month). The Free means that the customers whoremaster play the basic game for free. And they shtup buy close to items in the shop on the official website or directly in the game store.\r\nThe two players I picked for this analysis are dry land of Warcraft from rash entertainment, Inc.and a new launched online game from capital of Red China consummate(a) human Network Technology Co. , Ltd. snowstorm amusement is one of the crush game producers either over the world. And the innovation of Warcraft is one of the three just nigh famous game launched by Blizzard Entertainment. In number of simultaneous online players of World of Warcraft reached its peak on 2009 at about 13million players.\r\nThis number d ecreased to about 10million in 2012. And now, based on the financial storey from Blizzard Entertainment, this number is about 8million. everlasting(a) World is one of the most famous game producers in China.\r\nThey launched more than 15 online games not only in Chinese market, but also in oversea market such as Europe, North America, Russia and Australia. My proceeds is about that Perfect World wants to launch a new online game in Chinese market. And thusly Blizzard Entertainment give decide the monetary value strategy for World of Warcraft. Both the two club has two price strategies, Charging and Free. The World of Warcraft now exploitation the Charging price strategy. Because that when Blizzard Entertainment launched World of Warcraft, it was the best online game in the online game market.\r\nNow some of their customers go to play free games. save the World of Warcraft still being seen as has higher(prenominal) calibre than any â€Å"Made in China” online games. P erfect World Blizzard EntertainmentPW: Free BE: FreePW: Charging BE: Free PW: Free BE: ChargingPW: Charging BE: Charging In the leftfield top block, both the two companionship read Free. In this case, more customers allow for choose Blizzard Entertainment’s game. At the very(prenominal) price, they will naturally choose the better one. But the Blizzard Entertainment’s profits will decline as they translate from Charging to Free.\r\nIn the left seam block, Blizzard Entertainment keep Charging and Perfect World choose Free. This situation is what happened in new-fashioned years. Some of their customers go to play free games. The Blizzard Entertainment will lose their customers and profits. In the function top block, Blizzard Entertainment changes its price strategy to Free but Perfect World chooses Charging. In this case, most of customers will choose Blizzard Entertainment’s World of Warcraft. Because they can play higher quality game for free. In the rig ht bottom block, both the two company choose Charging.\r\nIn this situation, both of them will lose their profits. The customers will go to find other free games in the market. So l will evaluate the case as follow: Perfect World Blizzard EntertainmentPW: Free(4) BE: Free(5)PW: Charging(3) BE: Free(10) PW: Free(5) BE: Charging(6)PW: Charging(3) BE: Charging(3) So we can see that no matter Blizzard Entertainment choose Charging or Free, Perfect World will choose Free to approach more profits. That means, in this Sequential Game, Perfect World has its domain cream to choose Free. After Perfect World constrain its decision, Blizzard Entertainment will keep Charging to get more profits.\r\n'