Send us a text

Eric covers the economy and the system’s design of Ukraine’s Drone squadron. What does economy balancing look like in the face of war? Phil can’t stop gushing about Heroes of History, but there's one economy design piece holding it up. The crew descends into a John Maynard Keynes debate as a 4* or 5* character. Chris covers the economic impact of the UK’s new obligation for internet providers, potentially transforming UGC as we know it.

https://ericguan.substack.com/p/ukraine-gamified-drone-warfare

Send us a text

Yat Siu, Co-founder and Executive Chairman of Animoca Brands, steps cast to defend Web3 against @Eric and @Phil’s vigorous skepticism. @Chris just want to know why gamers don’t get it. Is Web2 fundamentally incapable of grasping the promise of open markets? What is and should be promised to token holders? 

We discuss:

• Laying down Web3’s steelman case
• Why the West still doesn't get Web3 like the East
• Examining the original token sin, where did it all go wrong?
• Do digital property rights actually hold back economic growth?

Send us a text

Pokémon's patent of spherical objects throwing of cartoon creatures threatens Palword's lifeblood, while Tim Sweeney has lifted, at least a percentage point, in total gaming GDP with its injunction success.

How does Apple's rent-seeking rate change in the face of this ruling? Should Apple lower its rate to 15%, like it did in subscriptions? Remember, it faced competition primarily from "webstores" too. We premier a new segment: SOLVE that for EQUILIBRIUM.

We discuss the marginal *monetization* effects and debate the benefits of personalization opportunities (hint: there are none) with webstores.

@Chris is intrigued by Joost's piece on rising game costs, while AI's effects on the industry are measured in the Solow model. @Phil insists rising game costs mean rising revenue and stable margins, while Eric has his own doubts.

Eric's on IP Laws: https://substack.com/home/post/p-161276950
Joost's On Gaming Costs: https://superjoost.substack.com/p/gamings-billion-dollar-gamble

Send us a text

What is the GDP-maximizing set of copyright protections? 10 years? 5 years? None at all? Chris, Eric, and I debate the relevance of patents and copyright protections and the gains to network effects of knowledge. Does the "gentlemen's agreement" to avoid patent protections on game design help or hurt the industry? 

Chris talks about Monster Hunter's lineage and woeful service, while Eric introduces a novel use of AI in game design. Phil believes the Gini coefficient is underutilized for measuring live-ops-driven revenue.

Send us a text

Phillip & Eric navigate the strangely subdued landscape of GDC 2025, pondering if there really is such a thing as a free lunch. Chris dials in, wondering if his absence is secretly the key to Eric's roundtable success. 

They dissect the talks, the conference economics, the rise of mobile's respectability, and a guest in economy designer, Charlie Hsu.

In this episode:

• Is the game industry actually shrinking, or just taking a nap? And if Web3 isn't the savior, what's left besides... sweeps?
•  Is GDC just a cleverly disguised wealth transfer from sponsors to developers
• What's the latest "reasonable" pitch for Web3 in games?
• What's the economic model behind those San Francisco walk-up shops overflowing with candy bars right next to the register? High margins? A tourist trap? Something... else

Send us a text

The best tech firm experimentation seems to offer thousands of button color experiments. Dr.Runge has a better approach, which changes at every game development stage. We debate gaming's broken relationship with science, the proper experimentation framework, and how much you'd bet on yourself to complete Cousera assignments.

Read Dr.Runge's new paper NOW!

Showlinks:
Julian Runge
Gaming Companies Run Thousands of Experiments a Year
Game Data Pros
How to use games to build relationships with your customers

Send us a text

Pokémon TCG Pocket is one of a handful of games to implement P2P trading on mobile. Yet it sucks. On purpose. As @Eric explains, their game economy needs high sinks to combat hourly sourcing of card packs. Without the nearly 80% trading tax, prices would tend toward $0. However, that's secondary to a UX that is so gimped it makes Friend Codes look seamless by comparison.

We deconstruct Matthew Ball's new State of Gaming report slide by slide (or at least curated slides.) @Chris thinks we're failing to keep pace with inflation, putting the industry at risk, while @Phil wants to know why TikTok is winning at the margin. Is gaming becoming LESS compelling relative to social media?

Send us a text

Loot boxes have all the markings of a moral panic. Dr.McCaffrey reviewed the emerging literature, and like the research on video game violence, it's destined for methodological malfunction.

We discuss why everything isn't a loot box, the apathetic interest of economists in games, what George R.R. Martin's economic equilibrium teaches us, and how to get more people interested in economics.

Follow Dr.McCaffrey on Twitter [1], see him on video games [2], and read his loot box and A Song of Fire and Ice papers here [3].

Send us a text

Is game balance bullshit? 

The crew goes toe-to-toe debating Sirland’s Don't Use Math in Balancing Games. Chris emerges from his Roblox hibernation, Eric tells us Street Fighter is more accessible than platform fighters, and Phil goes bonanza for All in Hole. 

Send us a text

Anti-cheat economics, web3 property rights, Deirdre McCloskey, institutional incentives, Halo UGC, and the if single player games have a natural advantage outside the West. Oh my.

Dr.Jason Arentz finally guest stars, and he's bringing the econ juice, finally striking a 50/50 web3 split on the case. 

Zynga Car Price Experiment: https://www.gamesindustry.biz/zynga-apologizes-for-random-dlc-pricing-experiment