E45: Autobattler Econ, WILD UGC Algo & A Currency Debate for the Ages (w/Arto Huhta)
What happens when autobattlers fail to monetize? We pull Arto Huhta [https://x.com/ProofOfDork] into the cast to chat about Telegram’s pseudo-WeChat ambitions. Eric releases a distrack on Game Designer's obsessed social spaces, and Phil wants more blood from psychologists' nonsensical F2P "choice overload." Chris enleashes a model-meets-UGC experiment: a three-algorithm simulation that shows how recommendation systems distort consumer welfare and creator inequality. We discuss:How Arto sees the split between economy design, product management, and classical economics (hint: it's not what you think)Pets as permanent progression, and the design logic behind Nonstop Knight’s monetization turnaroundWhy creator inequality explodes under bad reinforcementA brewing debate on regulation that is just getting started...Chapters 00:00 Journey to London: A Game Developer's Path 00:49 The Role of Economy Design in Gaming 01:20 From Academia to Game Development: Bridging the Gap 03:16 Experimentation in Game Design: Lessons Learned 05:22 The Intersection of Game Design and Economics 10:07 Understanding Game Development Roles 11:00 Monetization Strategies in Game Design 11:55 The Evolution of Publishing Models 12:42 Transitioning to Web 3: New Challenges 13:54 The Economics of Game Spending 18:27 Introduction to Game Economist Cast 19:06 Current Gaming Trends and Preferences 20:51 Game Modes and Player Engagement 22:03 The Future of Game Monetization 27:33 The Social Hub Experiment in Fighting Games 28:26 Street Fighter VI and Social Interaction 30:28 The Rise of HTML5 Games on Platforms 32:37 The Trend of Casual Games in Tech Companies 34:42 Telegram Games: A New Frontier 37:21 Challenges in Game Discovery on Telegram 38:52 User Engagement and Retention in Web3 Gaming 39:43 Consumer Welfare and Content Creation Dynamics 43:04 The Impact of Algorithms on User Experience 49:31 Heterogeneous Goods and Their Effects on Engagement 57:35 The Impact of Algorithms on Content Quality 59:04 Understanding Algorithmic Risks and User Retention 01:00:16 Exploring Algorithm Design in Gaming Platforms 01:01:54 The Role of User Choice in Content Discovery 01:04:29 The Future of Pricing Strategies in Free-to-Play Games 01:08:10 The Debate on Standardization and Market Forces
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E44: Incentive UGC Determinism for the Future of Gaming (w/Alex Seropian)
UGC is about to change forever. In the same way all technologies govern and enable the creative, MTX will do the same for Fortnite. Or will it? Alex Seropian (Look World North, The Forth Curtain) joins the cast to discuss UEFN's ability to enable creators to monetize islands directly. We discuss:What new games will emerge with MTX?Is UGC IP defensible? What exactly is the endgame for UGC studios?What's the maximum a Roblox studio earns?Chapters00:00 Introduction to UEFN and Guest Background03:48 UEFN's New Features and Developer Impact07:22 Comparing UEFN with Roblox10:23 The Future of IP in Gaming17:47 Epic's Strategic Vision and Development Tools21:04 The Evolution of UGC Platforms22:53 Challenges in User-Generated Content26:27 Monetization Models in Gaming28:01 The Joy of Game Development30:46 The Future of Fortnite's Economy39:16 China's Role in UGC Development41:40 Feedback Loops in Game Development
Eric Seufert joins to dissect AI hype, marginal ROAS, Jeremy Bentham's legacy, and managing a multi-million-dollar marketing budget that falls empirically short. WE discuss:How do you evaluate an “AI startup” in 90 seconds without being duped?Can LLM-driven hypothesis testing replace the Monday creative meeting and outperform it?If marginal ROAS is the real constraint, why do teams still optimize to averages?When should a Battlefield-scale launch actually spend less on day one and wait two weeks?Why did free-to-play economics conquer games but stall on platforms like Twitch or Spotify?Will AI-driven volatility make electricity markets funky?
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E42: Vertical Progression Is Gaming's Sex & Finally A Web3 Hope
Forget the endless autopsies on why Web3 gaming flatlined, @Chris gets past the clichés and gets into the real pathology: a misdiagnosis of what “play-to-earn” was ever good for. @Eric & @Phil on vertical progression is the most important retention driver for several specific reasonsThe “market for lemons” problem in developer <> publisher relations: why developers can banbooze publishersSub to Eric and Chris' Substack here:https://substack.com/@ericguanhttps://substack.com/@chriseconomics00:00 Introduction and Free Trials in Drug Dealing00:28 Economics of Drug Dealing02:11 Personal Experiences and Data Collection03:24 Car Dealerships and Market Monopolies04:57 Gaming Industry Insights: Clash Royale19:08 Battlefield 6: Gameplay and Strategy27:11 Rollerblading Adventures28:36 Rollerblading Economics30:16 Web3 Gaming Struggles34:54 Understanding Play-to-Earn Mechanics43:42 The Market for Lemons52:24 Conflicting Data on Gen Z Spending56:51 The Importance of Reliable Economic Data01:05:43 Conclusion and Future Topics
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E41: Karl Marx as a 5* Character & Ukrainian Drone Economy Design
Eric covers the economy and the system’s design of Ukraine’s Drone squadron. What does economy balancing look like in the face of war? Phil can’t stop gushing about Heroes of History, but there's one economy design piece holding it up. The crew descends into a John Maynard Keynes debate as a 4* or 5* character. Chris covers the economic impact of the UK’s new obligation for internet providers, potentially transforming UGC as we know it.https://ericguan.substack.com/p/ukraine-gamified-drone-warfare
What does the new wave of open economies mean for monetization? Will negative externalities overcome cosmetic economies in the long run? What exactly does a game economist do?
Game Economist Cast is a roundtable discussion of the latest developments in mobile, HD, and crypto games, through a bunch of people figuring it out using the economic toolkit.
South Africa