Secret Stash The Secret to Building Forever Franchises: Owen Mahoney
Jan 27, 2025
Owen Mahoney, former CEO of Nexon and VP at EA, offers a sharp critique of the gaming industry. He argues that fun should take precedence over flashy graphics, emphasizing a return to engaging gameplay. Mahoney discusses the staggering rise in game development costs and the risks they pose, along with the crucial balance between product and distribution. He also shares insights on his favorite M&A deals in gaming and outlines how to create enduring franchises beyond temporary blockbusters. His candid take is both refreshing and thought-provoking.
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Early Gaming Days
- Owen Mahoney got his start in gaming selling Apple II games at age 14.
- Later, he joined Electronic Arts in 2000, during a pivotal time for the gaming industry.
EA's Distribution Power
- EA's success stemmed from their deep understanding of distribution channels and marketing prowess.
- This allowed them to launch new IPs like The Sims, leveraging established franchises like Madden.
Licensing and Development Costs
- Licensing IPs helps differentiate games in a crowded market, but it's a downstream effect of rising development costs.
- These costs incentivize "safe bets", leading to less differentiated products that require stronger IPs for marketing.
