3/10/2005

Baseball Simulation

This article discusses how an entrepreneur from Germany made his own simulation baseball game. He designed the game so that fans can manage their own teams. The game plays according to statistical data, which makes the simulations more realistic in that the performances of the players are tied to their current numbers, like batting averages. The business is not very large; however, it has found a profitable niche in the market. Customers can download the simulation games from ootpdevelopments.com for $19.95 a each game. According to Markus Heinsohn, his company's sales reaches "six-digits" every year. He has found a way to make money doing what he loves.

4 comments:

homer said...

I think anytime you can make a good simulation of a sport that is popular you can have success. Not many people get the opportunity to play or manage at that level and so when something that lets you pretend for a while, the product has a good chance of selling.

sierra said...

I like this opportunity of being able to manage or play. A very small percent of people will ever be able to play or manage in professional sports, or even comprehend how tough it is to do. And so I think giving people an opportunity to pretend is going to be good and successful.

C-Dizzle said...

It's all about supply and demand; the simulation and the . My brother-in-law spends hours a day on sports simulation over the Internet. I am very aware of the demand for such a product.

Simulation is one of the best ways to prepare yourself for the real market at hand. That’s why I enjoy the simulations in economics class.

Dr. Tufte said...

-1 on MEG's comment for poor editing.

I think what you seeing here is the early stages of monopolistic competition. Sports simulation games have been around for a long time: first with cards and boards, then computers, and so on.

The story every time is that the firms start out making a profit (when they are acting as monopolists) and then sink towards zero profits through free entry.

The fundamental problem is that they aren't selling some fixed resource over which they have control. They can't buy and monopolize the probability concepts they are using, or the raw data on performance. So, they can't keep out the competition.