Should ProbablyMonsters prioritize rapid expansion of its studio network or focus on nurturing and growing its existing teams?

Introduction

The trade-off question at hand is whether ProbablyMonsters should prioritize rapid expansion of its studio network or focus on nurturing and growing its existing teams. This scenario involves balancing growth strategies for a game development company, considering both external expansion and internal development. I'll analyze this trade-off by examining the business context, potential impacts, and key metrics, then design an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking ProbablyMonsters' current revenue model might impact this decision. Could you share how the company currently generates revenue and how that might change with expansion?

Why it matters: Helps understand financial implications of expansion vs. nurturing Expected answer: Mix of game sales, licensing, and potentially work-for-hire Impact on approach: Would influence resource allocation and risk assessment

• User Impact: Based on the industry, I assume we're considering both game developers and end-users. How would expansion or focus affect our ability to attract and retain top talent?

Why it matters: Talent is crucial in game development Expected answer: Expansion might offer more opportunities, while focus could deepen expertise Impact on approach: Would shape our talent strategy and studio culture considerations

• Technical Feasibility: I'm curious about our current technical infrastructure. How scalable is our existing technology stack for supporting multiple studios?

Why it matters: Affects the ease and cost of expansion Expected answer: Moderately scalable, but may require investment Impact on approach: Would influence the speed and resource requirements for expansion

• Resource Allocation: Considering our current team structure, how are resources currently distributed among existing studios?

Why it matters: Helps assess capacity for growth or deepening expertise Expected answer: Varied distribution based on project needs and studio specialties Impact on approach: Would inform how to balance resources between expansion and nurturing

• Timeline Pressure: I'm wondering about any market or competitive pressures. Is there a specific timeline or window of opportunity we're considering for expansion?

Why it matters: Urgency could influence the trade-off decision Expected answer: Moderate pressure due to industry consolidation Impact on approach: Would affect the aggressiveness of our expansion strategy