Should IGT prioritize developing innovative features for its video poker machines or focus on optimizing existing popular game formats?

Introduction

The trade-off between developing innovative features for IGT's video poker machines and optimizing existing popular game formats presents a critical strategic decision. This scenario involves balancing innovation with proven success in the competitive casino gaming industry. I'll analyze this trade-off by examining product understanding, potential impacts, key metrics, and experimental approaches to inform a data-driven recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on the current market position, I'm thinking IGT might be facing increased competition. Could you provide insights into our market share trends over the past 2-3 years?

Why it matters: Helps determine if innovation or optimization is more critical for maintaining market position. Expected answer: Slight decline in market share due to new entrants. Impact on approach: Would lean towards innovation if market share is declining significantly.

• Considering user engagement, I'm assuming we have data on player retention for existing games. What are the current trends in player session length and frequency for our popular game formats?

Why it matters: Indicates whether existing games are still meeting user needs or if innovation is necessary. Expected answer: Stable retention but slight decrease in session length. Impact on approach: Would focus on optimizing existing games if retention is strong but session length is declining.

• From a technical standpoint, I'm thinking about our current platform capabilities. How flexible is our current video poker machine architecture for implementing new features?

Why it matters: Determines the feasibility and cost of innovation vs. optimization. Expected answer: Moderately flexible, but major innovations might require hardware updates. Impact on approach: Would influence the scope and timeline of potential innovations.

• Regarding resources, I'm curious about our current R&D capacity. What percentage of our product development resources are currently allocated to new feature development versus game optimization?

Why it matters: Helps understand if we have the capacity to pursue innovation without compromising existing product quality. Expected answer: 60% optimization, 40% new features. Impact on approach: Would inform how to balance resources between the two strategies.