What Is a Game Economist and Why Now?
There’s been recent enthusiasm about the need for “Game Economists.” I guess good things come in packages!
The Environmental Economics Approach to Liveops Content Management
In 1931, American economist Harold Hotelling published the seminal paper The Economics of Exhaustible Resources. Harold described a problem many firms face: how much of a non-renewable resource should they sell at any given time? This problem is more apparent when thinking about managing an oil supply but just as relevant when considering how to…
Why Do Game Genres Evolve? A Kuhnian Explanation
Modern live-service games have self-segmented in genres: match-3, 4x, collection RPG, battle royale, etc. We know these genres evolve and start to incorporate new mechanics. Over time, these mechanics become standard genre fare. For example, invest-n-express titles like Gardenscapes are an outgrowth of the match-3 genre, adding collection mechanics to the core match base. In…
Game Companies Are Not Tech Companies Part IV: MB = MC
Part IPart IIPart III A Quick Refresher Pricing is challenging to get right. Ideally, we’d like to select a price that maximizes profit while keeping everything else constant. Let’s add consumer surplus to the story. In the example below, this is the shaded yellow area. Some readers value the book at $30 and thus are…
Game Companies Are Not Tech Companies Part II: Platform Power (Or Lack Thereof)
Part I Ran Mo retraces the incredible fast follow of the auto-chess genre. Before you could blink an eye, what was a mod in Dota 2 (which itself was a mod) had spun off into three incarnations. The first was from the mod maker, Drodo Studios’ plainly labeled Auto Chess, the second was Valve’s Underlords,…
Game Companies Are Not Tech Companies Part I: Every Game Has Networking Effects, They Just Don’t Amount To Much
Ran Mo and Joseph Kim (@jokim1) argue that games should be viewed from a Silicon Valley perspective. The usual three appear: moats, networking effects, and platforms. Moreover, while I thought it had died out after the launch of Halo 3, an inferiority complex continues to exist amongst game makers. Games never seem to get the mainstream or broader tech…
Kantian Ethics for Game Ads and Beyond Is Probably a Good Idea
The ASA has banned misleading ads from Playrix’s Gardenscapes. Running the same creative in user acquisition hits diminishing returns fairly quickly as the creative “clears the market” for users attracted to that creative. To broaden appeal, why not simply advertise the game as existing in a entirely different genre? This opens up a whole new…
It’s Not Data-Driven or Informed You Want, It’s Science
“We want to be more data driven” or “We want to create a stronger data culture” are common organizational refrains. Supposedly, having more data or data playing a larger role in the decision making process is profitable. It’s weird because I haven’t seen any research to suggest this is the case. In firms like Facebook,…
Why Aren’t You Doing Analysis on Your Impact?
Performance based marketing makes intuitive sense; of course you want to optimize ROI on spend that compose 30% or more of a your firm’s expenditures. But here’s the kicker: if it makes sense for firms why not individuals? Shouldn’t we be tracking the impact of our output? Are co-workers actually reading your analysis, concept art…
Re-Rewriting Economic History
Will Luton argues on the dangers and solutions to F2P inflation over at gameindustry.biz. While there are some missteps in the opening of the article, Will makes a powerful and elegant point: …a sale can only be considered profitable if the net revenue from the start of the sale until resource equilibrium, and so demand, is…