Case Detail

Case Summary

WMS: Revenue Model Innovation for Gaming Solutions

Case Number: 5-215-254, Year Published: 2016

HBS Number: KEL951

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Authors: Mohanbir Sawhney; Pallavi Goodman; Ori Broit

Key Concepts

Business Model Innovation, Revenue Modeling, Financial Strategy, Financial Modeling, Pricing


In 2014 WMS Gaming, a manufacturer and seller of slot machines to casinos, was considering a redesign of its existing revenue model. As technology evolved and customer demand for gaming solutions intensified, new and innovative revenue models were being adopted in other technology markets. Most notably, the subscription revenue model, in which customers paid a monthly subscription fee rather than a large upfront fee, was becoming widely adopted in the software industry. Product manager Dayna Stone had the task of evaluating several revenue models and recommending one that most suited WMS's business needs and at the same time took customer needs and wishes into consideration. Complicating this decision were several factors that would have to be kept in mind. Americans' love of gaming had led to a mushrooming of casinos, which meant increased competition for casino dollars. Yet the financial crisis of 2008 and its aftermath had weakened demand for casinos. In addition, casinos, depending on the type of customers they attracted, differed in their appetite for innovation and maintenance of their slot machines. Students will step into the shoes of Dayna Stone as she undertakes the task of weighing these factors and selecting the right revenue model.

Learning Objectives

Conduct strategic and financial analysis to evaluate business models, analyze the economic and financial status of different customer segments, and evaluate the inherent risks of adopting a new revenue model, and balancing old and new revenue models.

Number of Pages: 16

Extended Case Information

Teaching Areas: Finance, Strategy

Teaching Note Available: Yes

Geographic: United States

Industry: Casino Gaming

Organization Name: WMS Gaming

Organization Size: Medium

Decision Maker Position: Product Manager

Decision Maker Gender: Female

Year of Case: 2014