Do all stars shine the same? Investigating the nonlinear effects of user and critic reviews on video game sales

Abstract

While research indicates that online reviews from users and critics are key factors in video game success, their relative importance remains unclear and theoretical rationales for why consumers may prefer one type of review over the other are lacking. Moreover, prior studies do not account for potential nonlinear effects that may help explain video game success more accurately. Building on signaling theory and insights into quality of information, this study addresses these gaps. An analysis of sales data from 1,642 video games shows that user and critic review valence positively influences sales in nonlinear patterns: the impact of increases in user review valence on sales diminishes at higher levels, whereas the impact of increases in critic review valence grows. Moreover, unlike in most markets, critic reviews in the video game market are more influential than user reviews. Results from a qualitative post-hoc study provide insights into the underlying consumer decision processes.