Transcript
Introduction
Matt
This is Matt Reustle, and today's episode is the first in a multi-part series on the video game market. More specifically, the video game console market. Our guest is Sia Kamalie, the founder and fund manager at Skycatcher. Now, Skycatcher describes themselves as focused on capturing asymmetry at the internet frontier, and Sia has very strong conviction, which you'll hear, that the video game console market is entering a major paradigm shift with an app store model set to hit its inflection point.
For this episode, we start with an overview of the video game console market itself, laying out the size and where it stands today. And admittedly, I did not appreciate it has been a growing market over the past decade. It's just been massively overshadowed by mobile.
We get into why now could represent the shift or the catalyst in terms of both the return profile for the businesses and this specific economic model and the potential inflection in earnings. We get into even more depth in episodes two and three when we cover the names most exposed to this theme with Sony and Nintendo. I think that the shift from hardware to a more software-like revenue stream is obviously a positive for these businesses, but calls out numbers around how big of an impact this could be.