From Peak to Decline: A Study on the Interactive Mechanism

Between Marketing Strategies and User Preference Evolution in

World of Warcraft

Zhaoyang Xu

School of Humanities and Social Sciences, Beijing Institute of Technology, Beijing 100081, China

Keywords: Marketing Strategies, User Preference Evolution, Dynamic Adaptation, Mobile Platforms, User-Generated

Content.

Abstract: As a globally iconic MMORPG, World of Warcraft (WoW) initially thrived on Blizzard Entertainment’s

precise marketing strategies and groundbreaking game design. However, the rise of mobile internet and users’

growing preference for fragmented, low-commitment gaming experiences have led to challenges such as player

attrition and declining market relevance. Analyzing WoW’s lifecycle, this study reveals Blizzard’s critical

missteps: a failure to dynamically address users’ evolving demands from "deep immersion" to "instant

gratification," alongside delayed adaptation to mobile platform expansion and short-video-driven engagement.

The research proposes a bidirectional "user preference–marketing strategy" framework, arguing that legacy IPs

must recalibrate value propositions through lightweight mobile adaptations, cross-platform interoperability

technologies, and incentivized user-generated content (UGC) ecosystems to bridge generational player

expectations.

1 INTRODUCTION

The global gaming industry continues to expand, with

a projected market size exceeding 200 billionin 2023,

driven by mobile games(53200billionin2023,driven

by mobile games 5345.6 billion revenue in 2022)

(Newzoo, 2023). However, challenges persist: market

monopolization by industry giants, declining

MMORPG user bases due to competition from fast-

paced titles like Genshin Impact and Honor of Kings,

and technological pressures from cloud gaming and

AI-generated content (AIGC). Concurrently, mobile

platforms and short-video ecosystems (e.g., TikTok)

have reshaped marketing paradigms, enabling UGC-

driven player co-creation. Notable case studies such

as Genshin Impact – which amassed $2 billion in

first-year revenue through its cross-platform

accessibility strategy – and Among Us, whose user

base expanded tenfold via organic livestreamer

engagement, demonstrate the critical role of market-

responsive tactics in contemporary digital campaigns

(Brown, 2018; Wang, 2020). Yet, classic IPS like

WoW struggle to reconcile legacy appeal with

modern preferences.

Existing studies focus on unidirectional analyses

of strategy impacts (Kotler, 2016; Teece, 1997) but

overlook the dynamic interplay between user

preferences and strategic adaptations. This study

addresses this gap by analyzing WoW’s lifecycle

through a bidirectional lens, integrating theories of

dynamic capabilities and user behavior (Hamari,

2015; Teece, 1997).

2 WORLD OF WARCRAFT

DEVELOPMENT STATUS

《World of Warcraft, the former dominant player in

the MMORPG space, is facing an unprecedented

market position decline and user loss crisis.

According to Statista data, in 2023, WoW's global

MMORPG market share dropped to 18%, far lower

than Final Fantasy XIV (25%) and Lost Ark (20%),

and its user base dropped from the peak of 12 million

in 2010 to 2.7 million in 2023, with an average annual

turnover rate of 15%. The percentage of new users is

less than 5%, and the aging of users is significant

(70% of players over 30 years old). In terms of

158

Xu, Z.

From Peak to Decline: A Study on the Interactive Mechanism Between Marketing Strategies and User Preference Evolution in World of Warcraft.

DOI: 10.5220/0013840500004719

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on E-commerce and Modern Logistics (ICEML 2025), pages 158-162

ISBN: 978-989-758-775-7

revenue, WoW's full-platform revenue in 2022 was

only $800 million, while the Original God's mobile

revenue reached $3.7 billion in the same period, a

wide gap. This decline is directly related to the rise of

mobile games: Newzoo report shows that in 2023, the

average daily online time of mobile game users in the

world is 2.1 hours, far more than 0.8 hours on the PC

side, and Blizzard has not launched the mobile game

version of WoW, resulting in the loss of mobile traffic

dividends, user fault intensities.

At the technical level, WoW's dilemma is equally

prominent, its picture engine is still based on the 2004

architecture, character modeling, light and shadow

effects and physical interaction lag behind new works

such as "Black Myth: Wukong" and "Final Fantasy

16", the lack of cross-platform interoperability further

limits the multi-scene user experience, players

complain that "the task progress cannot be seamlessly

connected on the phone". In addition, the lack of

content iteration has become a key pain point: the

expansion update cycle has been extended from two

years to three years, and the new version has been

criticized for "lack of innovation", such as Shadow

Kingdom (2020) due to confusing story logic and

repetitive gameplay (the "tower climbing" mode has

been accused of imitating Hades), Metacritic score

has dropped to 6.5, and player activity has plummeted

by 30%. The competitive pressure is not only from

similar MMORPGs, but also from emerging game

forms, such as "Original God" through the open world

and two-dimensional art style to attract young users,

"Eternal Life" with "escape + cold weapons"

integration of gameplay to seize the core player

market, and WoW in gameplay, art quality and social

mode have failed to meet the needs of Generation Z.

Blizzard's response strategy is also passive: Although

the nostalgia suit launched in 2019 briefly pulled back

1.2 million old players, the turnover rate was as high

as 65% after 3 months, and Blizzard failed to convert

nostalgic traffic into long-term retention; In terms of

marketing channels, it still relies on Twitch long

videos and official website announcements, short

video platforms (such as TikTok, TikTok) are less

than 10% of the original God, and lack of KOL

cooperation and UGC incentives, resulting in a low

reach rate for young users. To sum up, the current

situation of WoW reflects the systemic crisis of

classic IP in technology iteration, user generational

replacement and market competition upgrading, and

its revival needs to be comprehensively restructured

from product, marketing to technology.

3 WORLD OF WARCRAFT

TARGET CUSTOMER GROUP

POSITIONING

Blizzard’s segmentation strategy for WoW has

evolved but failed to address generational divides.

During its launch phase (2004–2010), the game

targeted 18–35-year-old male "hardcore" gamers,

who averaged over 4 hours of daily playtime and

prioritized deep social cooperation and long-term

achievements. Features like 40-player raids (e.g.,

"Molten Core") and complex class systems solidified

this demographic, achieving a 65%paid conversion

rate and 12 million subscribers by 2010 (Activision

Blizzard, 2010). However, attempts to attract casual

players (2011–2015) through simplified mechanics

(e.g., Dungeon Finder) backfired due to inadequate

onboarding (30% new-user churn) and persistent

complexity. By 2022, Gen Z adoption was hindered

by outdated graphics (85% of surveyed youths

preferred Genshin Impact’s aesthetics), steep learning

curves (50+ hours to master basics), and lack of UGC

integration. Blizzard’s rigid adherence to "hardcore

MMO" branding alienated younger audiences

seeking bite-sized, socially interactive experiences.

4 THE MARKETING STRATEGY

ANALYSIS OF THE MAGIC

WORLD

Blizzard Entertainment's marketing strategy for

World of Warcraft (WoW) has evolved dynamically

over its life cycle, reflecting strategic adaptation to

changing market conditions, it also exposes the

systemic limitations of classical intellectual property

(IP) in long-term operations.

In the initial release phase (2004-2005), Blizzard

employed an "epic marketing" strategy, spending

more than $50 million on television commercials,

magazine covers, and cinematic promos to establish

the brand's identity through the narrative of an "epic

battle between alliances and tribes" (Activision

Blizzard, 2005). The strategy attracted 1.5 million

subscribers in the first year and a conversion rate of

60%, but the over-reliance on core players resulted in

a fragmented user base that threatened to grow later

(Miller, 2006). The expansion period from 2006 to

2009 was dominated by content-driven strategies,

with massive expansions The Burning Crusade

(2007) and Wrath of the Lich King (2008) generating

pre-orders of $120 million and $180 million,

From Peak to Decline: A Study on the Interactive Mechanism Between Marketing Strategies and User Preference Evolution in World of

Warcraft

159

respectively (Statista, 2023). The cross-border

partnership with Coca-Cola reached 300 million

consumers around the world through the point-

redemption campaign, but the rigid expansion update

cycle created a "content consume and drain" cycle,

with player retention costs rising at an average annual

rate of 22% (Smith & Lee, 2010).

In the mature phase (2010-2013), Blizzard turned

to community operations and monetization

optimization, launched the $200,000 "Arena World

Championship" with a bonus pool, and introduced a

microtransaction system that increased average

revenue per user (ARPU) from $12 to $15 per month.

However, mechanics such as the complex talent tree

system caused 30% of new players to abandon the

game in the first month, and the 3% new user growth

rate was significantly lower than League of Legends'

18% growth rate in the same period (Chen, 2014;

SuperData, 2012).

During the recession (2014 to the present), the

limitations of Blizzard's reliance on nostalgia are

highlighted: the "Classic Old World" nostalgia suit

launched in 2019 attracted 1.2 million old players to

return in the short term, but the turnover rate reached

65% within three months (Nielsen, 2020). Structural

weaknesses include the delayed mobile transition --

70% of resources will still be invested in PC

development until 2022, missing out on the LBS

gaming boom led by Pokemon GO in 2016; The

penetration of Generation Z is insufficient, and the

reach rate of nostalgia propaganda in the post-00

group is less than 10% (YouGov, 2021); Technical

upgrades were slow, and the graphics engine was five

years behind competitors like Final Fantasy XIV

(Digital Foundry, 2023). Based on the analysis of

dynamic capability theory by Teece (1997), Blizzard

has defects in three core capabilities: market

perception (ignoring the trend of mobile

fragmentation), resource reorganization (sticking to

the PC-first strategy) and organizational learning

(repeating the "version and copy" mode without

innovation). Kotler's (2016) product life cycle theory

shows a lack of explanatory power here - the main

reason for WoW's decline is not natural cycle law, but

strategic mismatch, such as failure to follow the

"Cyberpunk 2077" and Tesla co-branding or the

Witcher series of film and television development of

IP derivative practices.

In summary, the journey of WoW reveals the

survival paradox of classic IP: early growth through

brand promotion and content iteration, but it is

difficult to adapt to generational preferences and

technological changes due to structural inertia.

Revival needs to break the "nostalgic dependence",

reduce the entry barrier through lightweight mobile

games, rebuild the connection with young users with

the help of KOL short video marketing, and integrate

cloud games and AI personalization to achieve cross-

platform experience - only by continuing to

dynamically adapt to the evolution of the market,

classic IP can regain vitality in the game industry

upheaval.

5 GAME INDUSTRY

MARKETING STRATEGY

INSPIRATION

Enterprises must abandon traditional unidirectional

strategy models and establish a closed-loop

mechanism for demand sensing and strategy

adjustment through real-time data monitoring and AI-

driven user behavior analysis. For example,

NetEase’s Justice Online integrated player voting into

version update decisions, directly incorporating user

feedback into development processes, which

improved retention rates by 18%. Tencent’s Honor of

Kings utilizes big data to analyze hero usage and win

rates, dynamically balancing game mechanics to

maintain player engagement. Additionally, lifecycle

theory must be combined with dynamic capability

theory: during growth phases, expand user

demographics through content fission (e.g.,

Cyberpunk 2077’s crossover collaboration with

Tesla); during decline phases, explore IP derivatives

(e.g., The Witcher series expanding into TV

adaptations) or cross-industry partnerships (e.g.,

Animal Crossing collaborating with luxury brands)

rather than relying solely on nostalgia-driven

marketing.

The ubiquity of mobile devices and advancements

in cloud gaming necessitate breaking down barriers

between devices and scenarios. For instance, Genshin

Impact’s cross-platform data synchronization (PC,

mobile, console) allows seamless transitions between

commuting and home environments, increasing user

coverage by 40%. If Blizzard integrated cloud

gaming into World of Warcraft (WoW), it could

lower hardware barriers and attract casual players.

Meanwhile, AI-generated content (AIGC)

significantly enhances content iteration efficiency—

Ubisoft, for example, reduced development cycles by

30% using AI tools to generate open-world terrain.

Cross-platform marketing must also adapt to

emerging media: deploying 15-second gameplay

clips or skill demonstrations on TikTok/Douyin,

coupled with challenge campaigns (e.g.,

ICEML 2025 - International Conference on E-commerce and Modern Logistics

160

#AzerothCreativeDance), can boost reach among

younger audiences. According to Statista (2023),

global short-video users averaged 95 minutes of daily

usage, yet traditional game promotions still prioritize

lengthy trailers. Blizzard’s TikTok content output is

only 10% of Genshin Impact’s, missing out on traffic

opportunities.

User-generated content (UGC) is not merely

supplementary but a core driver of brand loyalty.

Roblox incentivized player creativity through its

developer revenue-sharing model, paying $600

million to creators in 2022 and growing its user base

to 250 million. Minecraft’s modding community

contributes over 60% of game content, extending its

lifecycle to 12 years. Classic IPs can adopt similar

strategies: establishing creator funds to reward high-

quality mods, fan fiction, or cosplay; providing open

APIs and modding toolkits to lower creative barriers.

Social sharing mechanisms (e.g., referral rewards,

mentor systems) can activate veteran players’

potential to attract newcomers. MiHoYo’s Honkai

Impact 3rd increased new-user conversion rates by

25% through its “Invite Friends for Exclusive

Characters” campaign.

Classic IPs must balance “hardcore depth” with

“low-barrier accessibility.” Final Fantasy XIV

boosted new-user retention to 35% through its “free

trial up to Level 60” strategy, whereas WoW loses

potential players due to insufficient on boarding (30%

churn from complex controls) and steep learning

curves (50+ hours to master basics). Solutions

include: Launching lightweight mobile spin-offs

(e.g., Warcraft Arclight Rumble with simplified

controls retaining core IP elements);Adding “casual

modes” (auto-combat, quest navigation) on PC to

attract fragmented players; Utilizing AI-generated

personalized tutorials that adapt difficulty based on

player behavior. Traditional long-form promotional

videos (e.g., Blizzard’s 3-minute trailers) struggle to

capture Gen Z’s fragmented attention spans. In 2023,

TikTok hosted over 5 billion daily views of gaming-

related content, yet Blizzard’s share was below 1%.

Recommended actions include: Partnering with top

gaming KOLs (e.g., Shroud, Ninja) for live-streamed

launches to boost conversions; Launching “UGC

incentive programs” on Bilibili/Douyin, offering

traffic support and cash rewards for high-quality

creations;

Leveraging virtual streamers (e.g., Genshin

Impact’s Paimon) to enhance immersion through

cross-dimensional interactions.

AI extends beyond behavior prediction to enable

personalized content recommendations. For example,

Netflix improved user retention by 20% using AI-

driven show recommendations; the gaming industry

can similarly analyze player preferences to

dynamically adjust dungeon difficulty or story

branches. The metaverse offers novel interactive

scenarios: Epic Games transformed Fortnite into a

social platform by hosting virtual concerts (e.g.,

Travis Scott’s event drew 12 million viewers). If

Blizzard integrated VR into WoW, it could create

“immersive raid experiences” targeting premium

users.

In conclusion, gaming industry marketing

strategies must prioritize user needs, building

competitive moats through dynamic adaptation,

technological innovation, and ecosystem co-creation.

Reviving classic IPs requires not nostalgia but

breaking path dependency, seeking growth via

lightweight products, cross-platform experiences, and

UGC incentives. Only enterprises that continuously

iterate strategies and embrace change will thrive in

this rapidly evolving market.

6 CONCLUSIONS

WoW’s decline underscores the challenges faced by

classic IPs in adapting to dynamic markets. Blizzard’s

over-reliance on nostalgia, delayed mobile adoption,

and failure to engage younger audiences highlight the

need for a "User Preference–Marketing Strategy"

bidirectional model. Revival strategies must prioritize

lightweight iterations (e.g., mobile spin-offs), cross-

platform integration, and UGC incentives. For the

broader industry, survival hinges on embracing AI,

agile resource allocation, and abandoning legacy

dependencies.

REFERENCES

Bartle, R., 1996. Hearts, clubs, diamonds, spades: players

who suit MUDs. Journal of Virtual Environments, 1(1),

1-19.

Brown, T., 2018. Mobile gaming and cross-platform

strategies. Cambridge, MA: MIT Press.

Castronova, E., 2005. Synthetic worlds: The business and

culture of online games. Chicago, IL: University of

Chicago Press.

Csikszentmihalyi, M., 1990. Flow: The psychology of

optimal experience. New York, NY: Harper & Row.

Hamari, J., 2015. Why do people play games? A meta-

analysis. International Journal of Information

Management, 35(3), 299-318.

Jenkins, H., 2006. Convergence culture: Where old and new

media collide. New York, NY: NYU Press.

From Peak to Decline: A Study on the Interactive Mechanism Between Marketing Strategies and User Preference Evolution in World of

Warcraft

161

Johnson, P., 2017. The shift from hardcore to casual

gaming. Journal of Game Studies, 12(2), 45-67.

Juul, J., 2013. The art of failure: An essay on the pain of

playing video games. Cambridge, MA: MIT Press.

Kotler, P., 2016. Marketing management (15th ed.).

London, UK: Pearson.

McGonigal, J., 2011. Reality is broken: Why games make

us better and how they can change the world. New York,

NY: Penguin.

Pine, B. J., & Gilmore, J. H., 1999. The experience

economy. Boston, MA: Harvard Business Review

Press.

Ryan, R. M., & Deci, E. L., 2000. Self-determination theory

and the facilitation of intrinsic motivation. American

Psychologist, 55(1), 68-78.

Smith, J., 1998. The book, The publishing company.

London, 2

edition.

Teece, D. J., 1997. Dynamic capabilities and strategic

management. Strategic Management Journal, 18(7),

509-533.

Wang, L., 2020. Open world games and player creativity.

Games and Culture, 15(4), 423-441.

Zuboff, S., 2019. The age of surveillance capitalism. New

York, NY: PublicAffairs.

ICEML 2025 - International Conference on E-commerce and Modern Logistics

162