Gamebox

ProHub Comment

This is a well-structured profitability case that requires candidates to systematically work through market sizing before making financial recommendations. The case tests both quantitative analysis skills (calculating revenues and profits across categories) and qualitative thinking (identifying risks and alternative revenue sources like add-ons). The twist where add-on revenue significantly changes the optimal recommendation from Sports to Shooter teaches candidates to think holistically about revenue streams rather than relying on single metrics.

Estimated Time 15 minutes
Difficulty Medium
Source Darden
50 / 100
The CEO of GameBox, a well-known video game company, has approached us to help decide what type of new game the company should develop. How would you advise her?

Clarifying Information

  1. What is the CEO’s main goal? To maximize profit.
  2. How does Gamebox make money? Gamebox makes both its own games and consoles (similar to Nintendo). They make money by selling new consoles and video games. They are the sole producer of Gamebox games. Games are almost entirely sold digitally on Gamebox’s online portal.
  3. What does the CEO mean by “type” of game? Game Type relates to the category of game. For example, sports, family, racing, etc.
  4. Are we concerned about the game’s age rating? Most Gamebox games are rated E for Everyone or T for Teen. Gamebox has never produced a Mature rated game.