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Ep 10: Network Effects In Gaming (NFX Masterclass)
The NFX Podcast
The Network Effect of a Game
In games, users that become part of the clan retain dramatically longer and spend more money than those that don't. And so the first thing is the actual network that's being built in the game. At the high level liquidity, and then personal network with the people that you know or partner with in the clan. That's the first layer. But even that's not enough. Once you have that clan or the friends that you actually play with, there is what's called the personal utility network effect because now you need to coordinate with these people. You're now dependent on the game for that communication. The next thing we have in games are basically at two different layers: marketplaces and networks
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