The Pricing Games

Next Level Gaming (NLG), a startup in the E-sports and computer gaming industry, seeks advice on choosing a business model for launching its first online multiplayer role-playing game. The case explores three pricing options: subscription, retail, and free-to-play. Candidates must estimate the addressable market size, calculate profitability for each model, and consider qualitative factors to determine the optimal launch strategy. The analysis involves market sizing, revenue and profitability forecasting, and evaluating factors such as competitive responses, growth potential, and consumer preferences. The case concludes with interpreting survey data from beta tests to make a final recommendation on the most suitable business model for NLG’s game launch.