Cycles & Survival (Ep. 17)
Show notes
Mitch and Blake kick off Season 3 of the podcast with a high-level look at the current moment in the video game business, critiquing both the idea that the business is cyclical and we are in a downward phase of the cycle (and the naïve notion of "survive 'till '25"), as well as the idea that the business has simply matured, suggesting we are in a new phase of low growth and consolidation.
Instead, they propose a framework for thinking about the games business that argues for the continuous interplay of three innovation forces: content, distribution, and technology. They outline how each of the three forces have played out historically, and offer some examples of the discontinuous inflections that have occured along these three vectors of innovation. They also try to explain why innovation is currently stalled, and how that creates a downward spiral that affects valuations, risk-taking, and ultimately what kinds of games get made.
Show Notes:
Matthew Ball's state-of-the-games-business deck
Joost van Dreunen's newsletter