Introduction
The trade-off between developing new games and enhancing existing popular titles is a critical decision for NetEase. This scenario involves balancing innovation with maintaining current revenue streams. I'll analyze this trade-off by examining product strategy, user impact, resource allocation, and long-term business implications.
I'll start by asking clarifying questions, then identify the trade-off type, analyze the products involved, and develop a hypothesis. From there, I'll propose key metrics, design an experiment, outline a data analysis plan, and provide a decision framework before making a final recommendation.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps assess the potential of existing games vs. new opportunities Expected answer: Mix of mature and growing titles across various genres Impact: Influences resource allocation between new and existing games
Why it matters: Aligns strategy with primary revenue streams Expected answer: Mobile dominates, followed by PC, with console as a growing segment Impact: Might prioritize mobile game development or enhancement
Why it matters: Indicates whether existing games are maintaining player interest Expected answer: Varied trends, with some games showing decline and others growth Impact: Could influence decision to focus on revitalizing declining games or capitalizing on growing ones
Why it matters: Assesses our ability to innovate with new game development Expected answer: Some capabilities, but not industry-leading Impact: Might suggest focusing on enhancing existing games while building new tech capabilities
Why it matters: Indicates current resource allocation and potential for shift Expected answer: 60/40 split favoring existing games Impact: Helps determine feasibility of shifting focus without major restructuring
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