We sit down Benchmark’s legendary gaming investors Mitch Lasky and Blake Robbins (now also of the excellent Gamecraft podcast fame) to discuss the history and future of gaming business models. This episode is the perfect bookend to our Nintendo/Sega gaming series this season on Acquired — no one is more qualified than Mitch and Blake to breakdown how the business side of the industry has evolved so radically from the Periscope quarter-drop days to the forever games and platform based publishers of today.Regardless if you’re a gamer, understanding the incredible innovation that’s taken place over the past two decades in gaming and what it portends for other industries is critical for any founder and investor to understand. Tune in!LinksThe Gamecraft PodcastMitch and Blake on TwitterThe Genius of the SystemMitch’s old “Investing in Content” blog postThat Game Company and SkyRiot and the League of Legends dota-allstars.com growth hackSponsors:ServiceNow: https://bit.ly/acqsnaiagentsHuntress: https://bit.ly/acqhuntressVanta: https://bit.ly/acquiredvantaMore Acquired!:Get email updates with hints on next episode and follow-ups from recent episodesJoin the SlackSubscribe to ACQ2Merch Store!© Copyright 2015-2024 ACQ, LLCNote: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.

My guest today is Mitch Lasky. Mitch is a partner at Benchmark and one of the leading figures in the video game industry. Over the last 30 years, he has built, led, and invested in a number of the best gaming companies in the world, including Activision, EA, Riot, Snapchat, and Discord. I couldn’t think of a better person to break down the anatomy of great gaming businesses and Mitch does not disappoint. His insights are remarkable. Please enjoy this excellent conversation with Mitch Lasky. For the full show notes, transcript, and links to mentioned content, check out the episode page here. ----- This episode is brought to you by Canalyst. Canalyst is the leading destination for public company data and analysis. If you're a professional equity investor and haven't talked to Canalyst recently, you should give them a shout. Learn more and try Canalyst for yourself at canalyst.com/Patrick.  ----- Today's episode is brought to you by Brex. Brex is the integrated financial platform trusted by the world's most innovative entrepreneurs and fastest-growing companies. With Brex, you can move money fast for instant impact with high-limit corporate cards, payments, venture debt, and spend management software all in one place. Ready to accelerate your business? Learn more at brex.com/best. ----- Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.  Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more. Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here. Follow us on Twitter: @patrick_oshag | @JoinColossus Show Notes[00:02:31] - [First question] - Why there aren’t more famous gaming investors[00:05:08] - The most important features of the modern gaming business model[00:07:11] - Developing his aesthetic taste and investing decision skill[00:08:03] - What makes a game fun [00:09:26] - How delivering a pleasurable active user experience differs from passive content and media[00:11:09] - The developers of Doom being the first real modern video game company[00:13:09] - Half-Life’s important role in the development of the gaming industry[00:17:54] - How some of the big game aggregators get started in the first place[00:19:58] - What Riot can teach non-gaming businesses about business writ large[00:21:10] - Ways that the change from physical games to downloads changed monetization[00:31:47] - The impact of Apple’s privacy changes on gaming revenue[00:34:11] - How the access to professional game engines and a lower friction environment will change the industry[00:37:04] - Whether or not there is a step beyond mobile[00:39:42] - Ways platforms like Twitch and Discord have influenced gaming[00:42:26] - What he’s learned about games that allow them to seemingly exist forever[00:45:17] - Signs of a healthy gaming community[00:46:21] - The role of celebrities and influencers and generating retained audiences[00:47:45] - Whether or not crypto will unlock new opportunities for in-game monetization [00:52:50] - Key categories of motivators that could replace a ponzi-style in-game inflation [00:54:36] - Contrasting League of Legends versus a Ready Player One style world[00:58:22] - Emerging technologies and trends that may revolutionize the industry [01:02:41] - The most genius game pattern he’s ever played[01:04:44] - What attributes will define the great game investors in the coming decades[01:06:59] - How much his experience lends itself to investing in other sectors[01:11:07] - The kindest thing anyone has ever done for him

Legendary investor Mitch Lasky shares insights on the importance of GTM in gaming, missed investment opportunities in Twitch, evolving game investments, designing altruistic monetization systems, and navigating the challenges of the AAA game business model.

Venture capitalist Mitch Lasky discusses game industry insights, shareware models, EA buying Maxis, paying for mobile visibility. Memories of arcade gaming, legal complexities, early revenue strategies, theory of fun in game design, Spore evolution. Negotiations, founding a mobile game studio, online gaming business models, narrative-driven games evolution, customer data consolidation strategy, EA restructuring vision, sports subscriptions, and VC success.

Venture capitalist Mitch Lasky discusses the evolution of game design, the impact of user interactions on game development, monetization strategies, the shift towards free-to-play models, the evolution of the gaming industry, challenges in game development across platforms, emotional gameplay, gifting and altruism in video games, game complexity, growth of Discord, AI in game development, character balance in games, past collaborations, future opportunities in the gaming industry, and the evolution of video game business models.