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Gamecraft

Gamecraft is a limited series about the modern history of the video game business.

Beginning in the early 1990’s, the video game business began a radical transformation from a console and PC packaged goods business into the highly complex, online, multi-platform business it is today. Game industry legend Mitch Lasky and game investor Blake Robbins go on a thematic tour of the last 30 years of gaming, exploring the origins of free-to-play, platform-based publishing, casual & mobile gaming, forever games, user-generated content, consoles, virtual reality, and in-game economies across the eight episodes of Season 1.

In Season 2, Mitch and Blake are back with a new series analyzing the state of the video game business in 2024. They start with a macro view of the current business, before looking at some hot topics in gaming: the rise of powerful independent game studios, emerging markets for games around the world, how innovations in artificial intelligence will change game creation, and the renewed importance of intellectual property in the game business.

Copyright: © 2023

Latest Episodes:

Console Castles (Ep. 6) Feb 08, 2023

Show notes

Mitch and Blake debate the continuing relevance of dedicated gaming consoles to the video game business. They begin with a discussion of the economics of the console business, and how console manufacturers built defensible moats that have remained relevant for over 40 years. Mitch compares the current state of the console business to the theatrical feature film business -- and how both have become the domain of big budget blockbusters with cultural significance but dwindling market share. They discuss the history of Nintendo, how its often-contrarian business strategy has paid off over time. Mitch explains how a lawsuit with Nintendo got him into the video game business. They conclude with a look at Sony and Microsoft's different responses to cross-platform play, as powerful platform-based publishers like Epic challenge the traditional console model, and what it means to the future of the business.

Links & Show Notes:

Xbox GDC Launch Video

Nintendo Playing Cards (1889)

Valve's Hardware History

"Iwata chooses violence"

Pokemon GO / Niantic

Atari Games v. Nintendo

List of Cross-Platform Games (Q1 2023)

The Playground and the Stage (Ep. 5) Feb 01, 2023

Show notes

Mitch and Blake propose a framework for understanding user-generated content in games based on two central metaphors -- the playground and the stage -- representing the two ways users "create" content in games through play and performance. They discuss the rise of sandbox games, The Sims, GTA3, Runescape, Second Life, EVE Online, and Minecraft. Mitch explains the evolution of games as performance spaces, beginning with early machinima and progressing to YouTube videos and Twitch streaming. They conclude with a brief look at Roblox and Discord as two "third places" that people hang out online, and the influence of games on the future of social networks.

Links & Show Notes:

Bartle's Taxonomy

The Sims (WaPo article)

GTA 3 (The Ringer retrospective)

Second Life and lessons for the metaverse

Empires of EVE

Minecraft hits 1 trillion views on YouTube

Starcraft on Korean TV (2008)

Ninja and Drake on Twitch

The Forever Games (Ep. 4) Jan 25, 2023

Show notes

Mitch and Blake discuss how the rise of games-as-services has privileged durable, long-duration play-patterns -- leading to the modern idea of the "Forever Game" which can persist for decades. Mitch outlines his five attributes of long-term engagement and provides examples of each from games like Ultima Online, World of Warcraft, Age of Empires, and League of Legends. They look at the two distinct strands of long-duration play that emerged in the 1990's -- the massively-multiplayer online role playing game and the session-based online competitive game -- and how those genres evolved and cross-polinated to produce multi-billion dollar online games that have remained viable for a decade or more.

Links & Show Notes:

Bill Gurley on LTV

Island of Kesmai

The Assassination of Lord British

AoE2: Red Bull Wololo 2022

World of Warcraft

The Calculus of Fun (Ep. 3) Jan 18, 2023

Show notes

Mitch and Blake discuss perhaps the most important developments in the video games business since the 1990s: the explosion of casual and mobile gaming. Mitch explains how the casual business was catalyzed by the most unlikely of heroes. He talks about his time as the CEO of the first public mobile game company in the US (JAMDAT) leading up to the launch of the iPhone. They look at the rise of so-called "social gaming" on Facebook and how it was enabled by new advances in analytics and data science. They do a deep dive on the iOS App Store and Mitch talks about how Apple's desire to curate its end-user experience inadvertently led to the rise of Facebook as a customer acquisition gatekeeper. They end with a discussion of why SuperCell succeeded in building a multi-billion dollar mobile game business while Rovio did not.

Links & Show Notes:

Robert Westmoreland

EA's "We See Farther" Ad

Taneli Armanto / Nokia Snake

JAMDAT Mobile S-1

Steve Jobs Announces the iPhone

Mobile Games Dominate User-Acquisition Spending (2021)

The Fall and Rise of Publishing (Ep. 2) Jan 16, 2023

Show notes

Mitch and Blake take a deep dive into the game industry's migration from physical goods at retail to electronic distribution over the internet. They explore the rise of platform-based publishing — a new concept that marries the internet's remarkable utility in aggregating customers on digital platforms with the traditional publishing roles of editorial, marketing, and sales. This episode covers the origins of the innovative Steam service, Microsoft's GamePass platform (and why it led to Microsoft's $69B acquisition of Activision-Blizzard), and how the Chinese giant Tencent used platform-based publishing to become the largest game company in the world.

Links & Show Notes:

Is Publishing Dead? | Mitch Lasky (GDC, 2014)

Investing in Content | Mitch Lasky (2012)

Valve Corporation

Microsoft's Game Pass

Aggregation Theory | Ben Thompson (Stratechery)

A closer look at Tencent, the world's biggest game company (Polygon)

Steal This Game (Ep. 1) Jan 16, 2023

Show notes

Hosts Mitch Lasky and Blake Robbins discuss the rise of free-to-play as a dominant business model for video game marketing and distribution. They look at the roots of free-to-play in the shareware business, where companies like id Software and Apogee used it to build independent game businesses. Mitch shares some stories about his time as id's publisher in the late 90's. They then look at free-to-play as a response to rampant PC software piracy, primarily in Asia, and how Korean giant Nexon invented the modern internet free-to-play model with games like Maple Story and particularly Kart Rider. They conclude by tracing free-to-play back to the West, first in the casual games space and later with companies like Riot Games (League of Legends) and Epic (Fortnite). Mitch talks about his early investment in a pre-product Riot, and how they used free-to-play to become one of the most valuable games companies in the world.

Links & Show Notes:

Masters of Doom by David Kushner

Scott Miller (Apogee) [Bonus]

Introducing Gamecraft Jan 11, 2023

Show notes

Gamecraft is a limited series podcast about the modern history of the video game business hosted by industry veteran Mitch Lasky and investor Blake Robbins.

In this introductory episode, Mitch and Blake discuss the series as a whole, breaking down the eight episodes and why the themes explored in the episodes are so relevant to understanding the modern business. They discuss their backgrounds in the industry and why they chose to record this series of conversations.

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