Deconstructor of Fun TWiG #368: Ubisoft Cuts, TikTok Slips, and Gaming’s Next Distribution Crisis
Jan 29, 2026
They dissect Ubisoft’s layoffs and what they reveal about AAA strategy. They probe a16z fund performance and the wider VC squeeze. They debate TikTok’s uncertain role for game user acquisition and emerging AI video threats. They cover GDC safety concerns, The New York Times moving into mobile word games, and reactions to High Guard’s launch.
AI Snips
Chapters
Transcript
Episode notes
Meeting EA’s AI Strategist
- Eric met Mahir Vadia from EA and found him very smart and well-informed about AI and strategy.
- Eric still questioned having a McKinsey-background exec speaking on game development despite respecting his technical knowledge.
Big VC Fund Size Compresses Returns
- A16Z’s fund performance shows early funds outperformed but funds raised after 2017 underperform relative to public markets.
- Large multi-billion dollar VC funds compress returns and make venture math harder for LPs seeking high TVPI.
Use Big Funds For Access, Not Early Returns
- For LPs, big brand-name funds offer lower career risk and access to high-quality late-stage deals despite lower TVPI.
- Use large funds for de-risked, later-stage exposure while recognizing they behave differently than early-stage vehicles.