On Riot’s Arcane and It’s Cost

Arguments justifying Arcane on the grounds that “Riot can afford it” are already lost. This framing positions Arcane as a cost center. Marketing heads are commonly called “Heads of Growth” because marketing isn’t supposed to be a cost center; instead, it ought to be a profit center. It’s a beautiful show (I loved it! Thank…

WTF Are These Three Battle Pass Things

When I wrote, Economics of Battle Pass Are Broken. Let’s Fix It in 2021; I argued that designers needed to play with ADMC (average daily monetization cap) to transform the pass from an engagement to a monetization vertical. Since then, every subsequent “innovation” has been a creative exercise in price increases. Fortnite realized this long…

Three Things from the Play Ventures Summit

1. Distribution The mobile “meta” is getting games in players’ hands post-ATT. The unintended consequences of Apple’s destruction of mobile acquisitions haven’t been to regain distribution control but for firms to find alternatives. “Content Fortress” ad networks, messenger apps, fake ads becoming white-lie ads, web stores, a return to brand marketing angles, and yes, web3,…

It’s Time for Games to Embrace Aggregation Theory

In tech writer Ben Thompson’s infamous aggregation theory, economic power derives from supply ownership—train barons owned the track and leveraged that power up and down the supply chain. The internet flipped the relationship: with near zero switching and distribution costs, suppliers instead aggregated user demand to leverage suppliers. Consider Amazon: aggregating millions of customers gained…

Three Ways to Improve Taylor Swift’s ARPPU

A Game Economist Attends the Eras Tour At the Eras Tour in Stockholm, my thoughts naturally turned to Ms. Swift’s untapped monetization potential. Despite her billionaire status, she’s barely scratched the surface. By embracing “Taylor’s Version” labeling, Era-specific merch, and friendship bracelet culture, Swift could double her “extras” ARPPU from $50 to $100.

Fallout is the Final Nail in the Transmedia Coffin

The Fallout TV series has received widespread critical and audience acclaim, with 65M viewers and Amazon Prime’s 2nd most-watched show of all time. The show appears to have cracked the secret transmedia success formula: top-tier IP, backed by a six-figure budget, distribution through a 200M MAU network, and widespread critical acclaim. Consistent with the transmedia thesis, engagement with Fallout games…