Invest Like The Best
Episode 210 Unlocking Value in Gaming
Invest Like The Best

Episode 210: Unlocking Value in Gaming

Invest Like The Best

Episode 210

Unlocking Value in Gaming

Joost van Dreunen is an investor in the gaming world and a professor at NYU's Stern School of Business. We cover the rise and decline of GameStop, what parts of the value chain actually make money in video games, and the evolution of the video games business model.

This episode is sponsored by:

Canalyst. Canalyst is the leading destination for public company data and analysis. If you’re a professional equity investor and haven’t talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick.  

[00:02:38] – (First question) – First chapter of the modern gaming business

[00:06:28] – The product era of video games

[00:10:11] – The different pieces that take place in creating and selling a game

[00:12:25] – The story of GameStop

[00:18:45] – The transition to digital platform-based gaming

[00:22:55] – How the breakdown of platforms has changed

[00:27:35] – Free-to-play vs free-to-win in digital gaming

[00:31:27] – How the revenue models are changing the type of games that are made

[00:35:07] – Socializing games and the future there

[00:38:14] – Who is making money in the modern gaming world

[00:43:33] – The zones of opportunity to invest in within gaming

[00:47:12] – Why the business models can be more powerful than new tech

[00:53:52] – Strategies from gaming that the non-gaming industries can learn from

[00:57:05] – Kindest thing anyone has done for him

Unlocking Value in Gaming

Introduction

Patrick
Our guest today is Joost van Dreunen, an investor in the gaming world, professor at NYU Stern School of Business, and former CEO and co-founder of Super Data Research, a data-driven gaming firm that was acquired by Nielsen. He also recently authored one-up: creativity, competition, and the global business of video games, a great book on the gaming industry. Our conversation covers the rise and decline of GameStop, what parts of the value chain actually make money in video games, the evolution of the video games business model from Nintendo to Fortnite, and what other industries can learn by studying the video game industry. I hope you enjoy this great conversation with Joost van Dreunen.

The History of the Gaming Industry

Patrick
So Joost, we're going to tell a story today of the history of the business side of video games and gaming. I recently finished your book, and that's how we met. I thought it was a fantastic single industry, deep-dive, history lesson, picture of the day, and potentially, of the future. I think, obviously, we have to start at the beginning. What do you think the most appropriate first chapter of the modern gaming business is? And what defined it?

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