Mitch Lasky - The Business of Gaming

Key Takeaways:

1. In the gaming industry, there are relatively few famous investors compared to other sectors with a similar amount of enterprise value. This may be due to the historical perception of the industry as a hit-driven, entertainment business rather than a stable investment opportunity. However, in recent years, the emergence of "forever games" such as World of Warcraft and Fortnite, which have durability over time, has helped to change this perception.
1. UGC (user-generated content) as a huge plus for games like Roblox
2. Gaming has become more attractive to investors due to the shift towards digital distribution and subscription models, which provide more stable revenue streams. In addition, the increase in mobile gaming has expanded the potential audience for games, leading to higher valuations for gaming companies.
3. One key factor in the success of a gaming company is the ability to build a community of players (e.g. Twitch and Discord). This can be achieved through creating a game with high replay value, offering regular updates and new content, and fostering a positive and inclusive community culture.
4. A successful gaming company should also have a clear monetization strategy, whether it be through in-game purchases, subscriptions, or advertising. It is important to find a balance between generating revenue and maintaining a positive player experience.
5. The ability to adapt and pivot in response to changes in the market is crucial for the success of a gaming company. This may involve changing business models or shifting focus to new genres or platforms.
6. It's really important to find people that are passionate about the category and understand how to build games, but also have a good sense of how to build a business.

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