A system dynamics model for strategic resource allocation across sequential mobile game lifecycles

This study addresses the critical business challenge of strategically allocating resources between research and development (R&D) and marketing across sequential product lifecycles in the mobile game industry. Using a system dynamics methodology, we develop a simulation model that captures the dynamic interplay among these investments and their impact on user acquisition, retention, and financial performance. The simulation analysis illustrates how strategically reallocating resources between two products at different lifecycle stages can significantly improve user acquisition rates, reduce player dissatisfaction, and enhance overall profitability. Our findings reveal that a phased investment approach, prioritizing R&D for initial quality development, followed by targeted marketing deployment, yields more stable growth patterns and superior economic outcomes than parallel investment strategies. This research provides managers and entrepreneurs in digital industries with a practical decision-support framework for improving sequential product launches, offering actionable insights for improving portfolio management and sustaining long-term revenue streams. The study contributes to the fields of innovation management and strategic marketing by formalizing lifecycle dynamics within a dynamic simulation environment.