Is it better for Activision Blizzard to focus on mobile adaptations of popular franchises or develop new mobile-first IPs?

Introduction

The trade-off between focusing on mobile adaptations of popular franchises or developing new mobile-first IPs is a critical decision for Activision Blizzard's mobile strategy. This scenario involves balancing the potential for quick wins with established brands against the long-term benefits of creating innovative, mobile-native experiences. I'll analyze this trade-off by examining market trends, user behavior, resource allocation, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on the current mobile gaming landscape, I'm thinking Activision Blizzard might be facing increased competition. Could you provide more context on our market position and primary competitors in the mobile space?

Why it matters: Helps assess the urgency of our mobile strategy and identify potential gaps. Expected answer: We're facing strong competition from both established mobile publishers and traditional game companies entering the mobile market. Impact on approach: Would influence whether we prioritize quick market entry or differentiation.

• Business Context: I'm assuming mobile revenue is a growing segment for us. Can you share how significant mobile is to our overall revenue and growth targets?

Why it matters: Determines the level of resources and focus we should allocate to mobile initiatives. Expected answer: Mobile represents a substantial growth opportunity, targeting 30-40% of revenue in the next 3-5 years. Impact on approach: Higher targets would lean towards leveraging existing IPs for faster growth.

• User Impact: Considering our existing player base, I'm curious about the overlap between our console/PC players and mobile gamers. Do we have data on cross-platform engagement?

Why it matters: Helps determine if we should focus on converting existing fans or attracting new mobile-first users. Expected answer: There's moderate overlap, with about 30% of our console/PC players also engaging with mobile games. Impact on approach: Lower overlap might suggest prioritizing new mobile-first IPs to capture a different audience.

• Technical: Given the varying performance capabilities across mobile devices, I'm wondering about our current mobile development infrastructure. How scalable is our existing mobile tech stack?

Why it matters: Influences our ability to rapidly develop and iterate on mobile titles. Expected answer: We have a solid foundation but may need to invest in more mobile-specific tools and expertise. Impact on approach: Less robust infrastructure might favor adapting existing games initially while building mobile capabilities.

• Resource: Considering the specialized skills required for mobile development, I'm interested in our current mobile talent pool. What's our in-house mobile development capacity compared to our console/PC teams?

Why it matters: Affects our ability to execute on mobile projects and the potential need for hiring or partnerships. Expected answer: Our mobile teams are smaller, comprising about 20% of our total development workforce. Impact on approach: Limited mobile resources might suggest focusing on fewer, high-quality mobile adaptations initially.