Stage 3 (2023) “Next Gen Gaming”


You have made a breakthrough and found what you think will be the next big video game console of the decade! The consoles are straightforward to make and are made up solely of 4 different types of parts, but they are used in different proportions and hence you require a model to make accurate predictions for your production.

You decide to take action to build and launch your product into the market, but you require a financial model to outline your production details, sales, and costs for the next 5 years.

Part 1 – You need to consider the proportions and costs of the parts required to make each console. You must manage the ordering and shipment of parts, the rent for the office space, hiring and salary of workers, marketing expenses, selling price of the consoles, and shipping costs to stores. The challenge is to optimize production and minimize costs while ensuring that all constraints and assumptions are properly accounted for.

Part 2 – You face additional challenges. You need to adjust the part order to avoid excessive inventory at the end of the 5-year period. You must allocate the consoles produced to different stores based on their location, shipping costs, and maximum order capacity. Additionally, you need to plan marketing efforts during the holiday season with a reduced budget.

This is an actual case study that was presented to the participants of the Financial Modeling World Cup 2023, Stage 3 (April 21-24).

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions
Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold