Thursday, 22 November 2012

Fierce Competition of MapleStory




                MapleStory is a free multiplayer online role-playing game that is developed by the South Korea company, Wizet. Wizet generates income by selling cash for the game to players; using cash, character appearances and gameplay enhancements can be purchased from the Cash Shop. There are also merchandizes available for hardcore gamers. Through this, Wizet earned over US$ 300 million and had a total of 39 million users worldwide in 2006.

                  MapleStory is a monopolistic competition as it has small market shares, no collusion and is independent on its own. The game is a differentiated product and has several close substitutes. It has a fairly elastic, downward sloping demand curve. Consumers are fairly responsive or sensitive to price changes. There are no barriers to entry and they are a price maker, a firm that can influence the price of a good or service. In the short-run, there is no doubt that this firm makes supernormal profits with their total revenue higher than total cost and average revenue higher than average cost.

              However, with plenty of updates to upgrade the gameplay with different characters, monsters and easier task to level up, it created mixed reviews. This resulted in a number of consumers quitting the game but there are still beginners that get addicted to this game.


Written by Amy Ong

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