Deconstructor of Fun TWIG #328 The Hidden Cost of Celebrity Ads and the How Hollywood Doesn’t Get Games
Apr 24, 2025
The team dives into Supercell's latest investments and the contradictions in VC incentives that affect game development. They debate the independence of GamesBeat and scrutinize the sustainability of esports funding. Netflix’s Rebel Moon game sparks discussion, while the launch of Valorant Mobile in China signals Riot's ambitions. The conversation heats up over Royal Kingdom’s celebrity ad campaign as they question if TV ads still resonate with mobile gamers or if legacy marketing is fading fast.
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Supercell Investments as Hobby
- Supercell Investments is a feel-good hobby investing $300-$400 million in nine years, rather than a serious revenue-driving business.
- It focuses more on cultural gospel spreading than on significant financial returns.
VC Incentives Encourage Fundraising
- Large VC funds like Lightspeed face contradictory incentives, focusing more on raising capital than generating real returns.
- Massive management fees fund large organizations promoting themselves rather than delivering meaningful gaming exits.
VC Structure Should Align Incentives
- Structure VC funds to be smaller to better align incentives between investors and founders.
- Avoid massive management fees that encourage capital raising over return generation.