Introduction
The trade-off question at hand is whether Skillz should prioritize adding new game genres to expand its user base or focus on optimizing existing popular titles for better player retention. This scenario involves balancing growth through diversification against improving the core product offering. I'll analyze this trade-off by examining the current product landscape, potential impacts, and data-driven decision-making processes.
I'll approach this analysis by first gathering essential context, then evaluating the trade-off's potential impacts on various stakeholders. We'll design an experiment to test our hypotheses, analyze the results, and ultimately make a recommendation based on a structured decision framework.
Step 1
Clarifying Questions (3 minutes)
Why it matters: Helps determine if expansion or retention should be prioritized Expected answer: Growth is below target, around 15% year-over-year Impact on approach: Lower growth would lean towards genre expansion
Why it matters: Indicates the risk of focusing solely on existing games Expected answer: Top 3 games account for 60-70% of revenue Impact on approach: High concentration would suggest diversification
Why it matters: Helps assess the urgency of improving retention Expected answer: 30-day retention around 20-25% Impact on approach: Low retention would prioritize optimization of existing games
Why it matters: Affects feasibility and timeline of adding new genres Expected answer: Moderate effort required, 2-3 months for integration Impact on approach: Longer integration time might favor optimizing existing games
Why it matters: Indicates our ability to pursue both strategies simultaneously Expected answer: 70% on existing games, 30% on new development Impact on approach: Limited new development resources might favor optimization
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