Stratechery Gaming the Smiling Curve
Feb 1, 2022
The podcast dives into the surge of major acquisitions in the gaming world, highlighting how mobile gaming is reshaping the industry. It contrasts Microsoft and Sony's financial tactics regarding exclusivity and examines subscription models like Xbox Game Pass. The conversation also delves into the Smiling Curve concept, showcasing the influence of dominant players like Apple and Google. Finally, it analyzes the competitive landscape driven by independent creators and the need for innovation in game design.
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Take-Two's Mobile Focus
- Take-Two Interactive's acquisition of Zynga was driven by mobile gaming's revenue dominance.
- Mobile gaming accounts for over 50% of the industry's revenue and is growing faster than PC and console gaming.
Impact of ATT
- Apple's App Tracking Transparency (ATT) policy significantly impacted mobile gaming companies like Zynga.
- ATT hindered targeted advertising by restricting the collective collection and analysis of user data.
Microsoft's Acquisition Strategy
- Microsoft's acquisition of Activision Blizzard was influenced by the company's declining stock price.
- This decline was primarily due to internal cultural issues and a lawsuit, allowing Microsoft to capitalize on the situation.