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Product Management Trade-off Question: Amazon Luna device expansion versus platform optimization decision

The Amazon Luna team needs to decide: should we expand Amazon Luna device support or optimize existing platforms?

Product Trade-Off Hard Member-only
Strategic Decision Making Data Analysis Experiment Design Cloud Gaming Streaming Services Entertainment Technology
Product Strategy User Acquisition Performance Optimization Platform Expansion Cloud Gaming

Introduction

The Amazon Luna team faces a critical decision: expand device support or optimize existing platforms. This trade-off involves balancing growth potential against performance improvements. I'll analyze this scenario using a structured approach, considering user impact, technical feasibility, and business alignment.

Analysis Approach

I'd like to outline my approach to ensure we're aligned on the key areas I'll cover in my analysis.

Step 1

Clarifying Questions (3 minutes)

  • Context: I'm assuming Luna is in a growth phase, but I'd like to confirm. Could you share our current market position and growth trajectory?

Why it matters: Helps determine if expansion or optimization is more critical Expected answer: Moderate growth, trailing competitors Impact: Strong growth might favor expansion, while slower growth could prioritize optimization

  • Business Context: Based on our revenue model, I'm thinking device expansion could increase our addressable market. How does our current revenue break down between subscription fees and in-game purchases?

Why it matters: Informs whether expansion or optimization would have a greater revenue impact Expected answer: 70% subscription, 30% in-game purchases Impact: Higher in-game purchase ratio might favor optimization for better engagement

  • User Impact: Considering user segments, I'm curious about our current device usage patterns. What percentage of our users access Luna on multiple devices?

Why it matters: Indicates demand for cross-device support Expected answer: 40% use multiple devices Impact: Higher multi-device usage would support expansion strategy

  • Technical: Regarding scalability, I'm wondering about our current infrastructure. How much additional load can our servers handle for new devices without significant upgrades?

Why it matters: Affects feasibility and cost of expansion Expected answer: 30% additional capacity available Impact: Limited capacity might favor optimization over expansion

  • Resource: Looking at team capacity, I'm thinking this could be a significant undertaking. How are our engineering resources currently allocated between new features and optimization?

Why it matters: Determines feasibility of pursuing both strategies simultaneously Expected answer: 60% new features, 40% optimization Impact: Heavy optimization focus might suggest continuing that path

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