Author

Taylor Louie

Document Type

Honors Capstone Project

Date of Submission

Spring 5-1-2011

Capstone Advisor

Dr. Linda Cushman

Honors Reader

Dr. Minet Schindehutte

Capstone Major

Management

Capstone College

Management

Audio/Visual Component

no

Capstone Prize Winner

no

Won Capstone Funding

no

Honors Categories

Professional

Subject Categories

Advertising and Promotion Management | Sales and Merchandising

Abstract

Skill gaming is a type of online gaming in which people play fun, easy to learn, casual games, in a tournament setup - sometimes backed by small wagers, in attempt to win cash prizes. Launched in April, 2009, SkillAddiction (SA), now host to over 54,000 customers across more than 150 countries, brings people together to compete in any of their favorite casual games, in which the outcome is predominantly based on the player's skill. SA has incorporated innovative features to set itself apart from competitors, such as a virtual scavenger hunt, and interactive community features, and continues to develop the application and add games on a regular basis.

The $1 billion skill gaming industry is dominated by only three firms, who have had years of uncontested market control. This concentrated dominance has stifled innovation and disabled consumer involvement. Furthermore, due to inherent restrictions of a skill gaming business, competitors have disregarded a large portion of their target audience in major geographical areas. A huge deficit in the supply of skill gaming to the consumer group exists as a result of the unwillingness to pursue alternate monetization efforts.

SA has built its application around offering players the most opportunities to benefit from playing at a skill gaming website, both quantitatively (cash and prizes) and qualitatively (community interaction and site features). This is made possible by additional revenue drivers that SA has implemented into its business model, diversifying risk across multiple types of revenue streams, and enabling a low cost fee structure that benefits the players directly.

SA reaches the broadest scope of online gamer - from young to old, women and men, casual or professional in its appeal by offering designs and games that can be enjoyed and appreciated by whole market. Also, SA has introduced the first virtual currency system into a casual skill gaming platform, fueling competition, motivating activity in previously dormant market segments, and making winning a possibility even without playing directly for cash.

SkillAddiction's customers have participated in over 550,000 tournaments and over 3,000,000 game plays. These figures have been reached without any substantial marketing efforts. Going forward, SA plans to focus its marketing efforts into several online campaigns.

SA incorporates three sources of revenue: collected tournament fees, advertising, and Offers. SkillAddiction will be incorporating a fourth revenue driver by the end of 2010 which will be a subscription-based gameplay model for the website. SkillAddiction is looking to enter into the mobile and social skill gaming markets to gain first mover advantage and secure the fifth and sixth revenue drivers for the company.

Without financial backing, SA is on track to generate $50,000 in revenues in 2010.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.