Games are cool. Economics is cool. Game Economics is just beginning.

In Search of the Casual Habby & Meta SDK

Habby (Happy + Hobby) rewrote mobile’s growth playbook when Archero exploded in 2019, and the studio has remained a case study in scaling hybridcasual hits ever since. The game coined “hybridcasual,” surpassed $500M in revenue, and, more importantly, created a meta sturdy enough to be recycled in every project that followed. Despite a surge in…

Why Loot Boxes Exist

Nothing is as misunderstood as loot boxes in gaming (virtual currency is a close second). Critics decry them as a normalization of gambling that preys on weak impulse control. Strip away the moral panic, and a sanguine explanation emerges: loot boxes solve two vexing economic problems.

Two Troubling Signs for Gaming

Two troubling signs for gaming: First, Danielle Tran from Konvoy reports that AI accounts for only 10% of gaming investments, compared with 71% across all venture activity. Do VCs believe AI will transform every industry except gaming? AI is a growth mechanic, and the idea that gaming won’t benefit as much is a tough pill…

How to Model Extraction Economies (in Google Sheets)

The answer to extraction shooters lies in system design. By creating a model, we can derive implications that help guide key design decisions and frame challenges in a quantifiable way. A model also lays plain some of the variables that shape the experience of extractions. There’s a reason Marathon’s design director mentioned a target survival…

The Strange Game Agglomeration Effects

This (the games industry is deprofessionalizing”) is an interesting line of thought by Ryan K. Ringey, and Simon Carless, especially when you consider how Roblox studios form – very much “de‑professionalised,” virtual, and less “sticky.” Sometimes, these Roblox studios look more like a Discord server than a company. It echoes Coase’s famous argument in The…

Will Monetization Actually Trump Engagement?

Marvel Rivals numbers are in free-fall. The engagement bump from the latest season won’t reverse its decline toward equilibrium: potentially matching but not exceeding Overwatch’s audience size, which has since recovered from Rivals’ launch. Is that a “successful outcome”? It feels like a blow to the arms race hypothesis. Chinese developers are releasing AAA content…