Game Economist Cast

Send us a textPokémon's patent of spherical objects throwing of cartoon creatures threatens Palword's lifeblood, while Tim Sweeney has lifted, at least a percentage point, in total gaming GDP with its injunction success.How does Apple's rent-seeking rate change in the face of this ruling? Should Apple lower its rate to 15%, like it did in subscriptions? Remember, it faced competition primarily from "webstores" too. We premier a new segment: SOLVE that for EQUILIBRIUM.We discuss the marginal *monetization* effects and debate the benefits of personalization opportunities (hint: there are none) with webstores.@Chris is intrigued by Joost's piece on rising game costs, while AI's effects on the industry are measured in the Solow model. @Phil insists rising game costs mean rising revenue and stable margins, while Eric has his own doubts.Eric's on IP Laws: https://substack.com/home/post/p-161276950Joost's On Gaming Costs: https://superjoost.substack.com/p/gamings-billion-dollar-gamble

Send us a textWhat is the GDP-maximizing set of copyright protections? 10 years? 5 years? None at all? Chris, Eric, and I debate the relevance of patents and copyright protections and the gains to network effects of knowledge. Does the "gentlemen's agreement" to avoid patent protections on game design help or hurt the industry? Chris talks about Monster Hunter's lineage and woeful service, while Eric introduces a novel use of AI in game design. Phil believes the Gini coefficient is underutilized for measuring live-ops-driven revenue.

Send us a textPhillip & Eric navigate the strangely subdued landscape of GDC 2025, pondering if there really is such a thing as a free lunch. Chris dials in, wondering if his absence is secretly the key to Eric's roundtable success. They dissect the talks, the conference economics, the rise of mobile's respectability, and a guest in economy designer, Charlie Hsu.In this episode:Is the game industry actually shrinking, or just taking a nap? And if Web3 isn't the savior, what's left besides... sweeps? Is GDC just a cleverly disguised wealth transfer from sponsors to developersWhat's the latest "reasonable" pitch for Web3 in games?What's the economic model behind those San Francisco walk-up shops overflowing with candy bars right next to the register? High margins? A tourist trap? Something... else

Send us a textThe best tech firm experimentation seems to offer thousands of button color experiments. Dr.Runge has a better approach, which changes at every game development stage. We debate gaming's broken relationship with science, the proper experimentation framework, and how much you'd bet on yourself to complete Cousera assignments.Read Dr.Runge's new paper NOW! Showlinks:Julian RungeGaming Companies Run Thousands of Experiments a YearGame Data ProsHow to use games to build relationships with your customers

Send us a textPokémon TCG Pocket is one of a handful of games to implement P2P trading on mobile. Yet it sucks. On purpose. As @Eric explains, their game economy needs high sinks to combat hourly sourcing of card packs. Without the nearly 80% trading tax, prices would tend toward $0. However, that's secondary to a UX that is so gimped it makes Friend Codes look seamless by comparison.We deconstruct Matthew Ball's new State of Gaming report slide by slide (or at least curated slides.) @Chris thinks we're failing to keep pace with inflation, putting the industry at risk, while @Phil wants to know why TikTok is winning at the margin. Is gaming becoming LESS compelling relative to social media?

Send us a textLoot boxes have all the markings of a moral panic. Dr.McCaffrey reviewed the emerging literature, and like the research on video game violence, it's destined for methodological malfunction. We discuss why everything isn't a loot box, the apathetic interest of economists in games, what George R.R. Martin's economic equilibrium teaches us, and how to get more people interested in economics.Follow Dr.McCaffrey on Twitter [1], see him on video games [2], and read his loot box and A Song of Fire and Ice papers here [3].

Send us a textIs game balance bullshit? The crew goes toe-to-toe debating Sirland’s Don't Use Math in Balancing Games. Chris emerges from his Roblox hibernation, Eric tells us Street Fighter is more accessible than platform fighters, and Phil goes bonanza for All in Hole. 

In this engaging discussion, Dr. Jason Arentz, a game economist with a rich background in physics and experimental economics, dives into the economics of game design and player behavior. He shares insights on the complexities of pricing experiments and the balance between player satisfaction and profit. Arentz also explores the emerging world of Web3 ownership in gaming, tackling issues like cheating and bot activity. The conversation highlights the emotional connections players have with their virtual purchases and the evolving landscape of game development.

Send us a textEconomist Dr.Peter G. Klein joins the cast to discuss Why Managers Matter: The Perils of the Bossless Company. We debate Valve's organizational structure, the evidence for manager economic impact, and Sweden's success. Read more about Dr.Klein here and find his book below:https://hankamer.baylor.edu/person/peter-g-klein-0https://www.amazon.com/Why-Managers-Matter-Bossless-Company/dp/1541751043/15:37 Why Managers Matter22:29 CEOs35:22 Valve

Send us a textPhil and Chris return from Asia, and it's gachupon from here in-out. Eric talks vertical progression in single player games, while Chris actually agree on the future of web 2.5. The economics of unions weigh heavily: within or between professions? The crew finally makes it to THE KING PAPER; Eric and Chris make surprising revalation.Quantity discounts on a virtual good: The results of a massive pricing experiment at King Digital Entertainment