The virtual simulations do bear some resemblance to old-fashioned case studies. In general, students watch a short clip explaining the scenario (just as case studies set the scene), and then have to make a decision about what to do next. Unlike with case studies, however, students using these simulations are able to get instant feedback on their decisions through multiple rounds of play.

In Harvard’s Benihana restaurant simulation, for instance, students choose whether to move customers from the bar to the restaurant in batches or individually—and see how this affects sales. They can change the size of the bar and the number of tables. They can try to speed up table turnover, then run 20 iterations instantly and see how profits change. Students seem to prefer the challenge and the format. Wood notes that when Stanford started using an early version of Littlefield Technologies, an operations management simulation that he and Kumar designed, student ratings for that class rose dramatically.

The games do have their critics, however. One study conducted during the 2004-’05 school year at a business school in Edinburgh found that while the majority of students enjoyed the simulation game, it seemed largely due to their novelty rather than to any inherent advantage they possessed. Others wonder just how realistic these simulations can possibly be, which even some of the game makers admit is a limitation.  

“Would a kid who ran a simulated company be qualified to run a Subway franchise? I doubt it,” says Capsim’s Smith, who is an adjunct professor at DePaul’s business school. But, he notes, “You can get some clue whether the students mastered the basic concepts and more importantly, can integrate them together.”

The games also get knocked for the poor quality of their graphics, especially given the power of today’s computers. Harvard’s Everest simulation, for example, looks little better than the Oregon Trail computer game many current business students may have played in elementary school. Saulnier says graphics are secondary to the game’s content and ease of use, but other simulation makers are taking a different approach.

The latest version of Marketplace, a popular simulation about selling computers put out by Innovative Learning Solutions, features factories that could show up in Second Life, scenery reminiscent of World of Warcraft, and colorful characters like a villainous loan shark named Guido. “People do like a little bit of entertainment along with the education,” explains Ernie Cadotte, the University of Tennessee at Knoxville marketing professor who designed the game.

For its part, Harvard Business Publishing plans to issue six more simulations this year, including extremely current topics such as a mergers-and-acquisitions simulation and another where students manage a private-equity portfolio. “We’re only going to scale up,” Saulnier says.