Complex Systems with Patrick McKenzie (patio11) Bits, Bytes, and Burgers with Byrne Hobart
31 snips
Sep 26, 2024 
Byrne Hobart, a finance and technology writer behind The Diff, joins for a fascinating discussion on 'whales' in gaming and their parallels in various industries. They delve into the psychology of in-game spending, revealing how players transition from casual to high-end purchases. The conversation also explores bespoke software for affluent hobbies and the evolution of restaurant websites. Additionally, they share insights on the role of AI in enhancing memory and the transformation of user experiences in search.
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In-Game Currency Pricing
- Free-to-play games often use dual currencies to obscure real-money costs.
- This allows for complex pricing grids with bulk discounts and psychological nudges.
Whale Dynamics
- Mobile game spending follows a power law: a few "whales" spend enormous sums.
- Games avoid large price points because they want to conceal potential high spending from most users.
Casino Hosts and Whales
- Patrick McKenzie cites a Kongregate CEO presentation on "whale" monetization.
- Like casino hosts, dedicated staff manage high-spending players, offering personalized service and previews.
