Joost van Dreunen is an academic and entrepreneur with an expertise in video games. He is author of One Up and teaches at the NYU Stern School of Business. Previously he was co-founder and CEO of SuperData Research, a games market research firm, which he sold to Nielsen in 2018. He is an advisor and investor, and writes a weekly newsletter on gaming, tech, and entertainment called SuperJoost Playlist.View the profile
About the talk
Long relegated to the sidelines, the $160 billion video game industry has emerged as the preferred pastime for 3 billion people worldwide. Gone are the days of awkward kids playing games in their parents’ basements all hours of the night. Today major publishers and large tech firms spend billions to capture share in a market that barely seemed to exist a few years ago.
Indeed, how have video game companies managed to thrive in the face of digitalization where conventional media firms faltered? We’ll discuss how video games became mainstream and what it means for the future of entertainment. You’ll hear about the trends, the major players, and predictions around live streaming, user-generated content, advertisers entering the space, and Big Tech’s impact on the global games’ economy.
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Welcome to my kitchen here in Brooklyn for green and my name is Joe. Someone we talked a little bit about what you'd expect by first thing of course, mr. Going to tell you, I am a little bit of background as to why should listen to me at all. By the time I was also the co-founder and CEO cover. Most of my day, I start a business That's very interesting to me. Personally, it's been a fascinating topic and a quick shout-out to Marshall settings up and find me the platform
technology. You know what fruit am I find video games that we could lay out for other categories and vertical IDs intuitively? Topic that you will have a discussion with your boss. If you are working with the Big Brand, if you are part of the big Sports company in a lot of experience, I had after the business to Larkspur much Brands and navigate to the Merit of serious nature it. So many ways, it's accelerating. And that's kind of where one starts. Starting
an overview. Of course you don't. Gamers are the Vanguard of what is there. Early behaviorist? Can we see? Now, that's from which we can deduct with the future Bowl later. The song into top speed acceleration in growth. So I had to lay down for the first Super Mario games. I ever touched all the way to today study group, the first 6, 8 10, 20 years was really the last 10-15 years, growth factor into the revenue of things become bigger. They sent the change
from one of my favorite principles when it comes to large Industries, sore throat, and a couple of changes until you see, of course, companies like Microsoft. Become a team, Steve differently today than I did ten years ago because they're now catering to no longer are they spent their time and their money question that follows today would be. Why is that? Because if it is not because we've been locked up in her house and trying to get away from it for a brief moment and
this is something that's been going on for a long time. Transition to digital, slow, gradual motion, forward Peaks, I guess in 2020. The biggest thing is to give you a little bit of context is that the game's sit side-by-side with other forms of entertainment, and one of them is, of course, I think we should games to me, is an executive decision makers, and you will find that your music never quite like the internet because that's the scariest video, of course about it. And it
ends up being something that is very hard to navigate. If you are in that mindset, of course, then if I laid it out in terms of Revenue model CC that over the last 20 years, the grocery has come from his idea of games of the surface, so no longer Thinking about her talking about buying a disc in GameStop and sticking a cartridge in your system is really about downloading content to pay for free. And then adding additional content of Fashions 2 microtransactions 2, digital download level packs, battle passes that have you,
what? Honor lies all. That is of course the fact that we are able to connect with each other, if they quickly launch is a online multiplayer game, a lot of people, I should say the developer expected to sell maybe four hundred thousand units by the end of the year, they sold it within the first month because people were so excited to be able to play with a friend online. And so, what do you have effectively the game was credible? Capitalization Network effects. No longer ours, it's just
one publisher talking to millions of individual separately but they now all contributed to the value of the game of the online experience at the Sheraton or the other people in the room and create a large part of the value. And you see that, and of course, reflected in the reach of somebody's company. So I really just go to top-level here. Two hundred million people on a monthly basis. That's a lot of people to be reaching the time. You see an Activision Blizzard Candy Crush.
People start to invest in companies around it. How do you make something that's interesting cuz that many people. How does that come about? One of the new components which I'm sure many of us stopped by RV when Amazon acquire switch to 2014. Fendley, blue-haired people for money games in 2020, received almost doubling a few worship. So we have spreadable number of eyeballs. Only Gamers about all the other category. You know, I thought it was trying to come to terms with a larger conversation, find speakers. And I think that's
a very interesting Share real-time. It also creates generally 50% of the budget. Now, moved over to a whole new category. That's what, that's what you see in twitch, but you see it. Also a day's march by Billy. Billy is a juggernaut Anthony's. Read the messages is Demarcus Beckham right now that we are catering to you a sense of what it looks like in the mind of Gamers and send them to give you some you know, Siri here and say, well, most of the time games are and just you do mechanics will be count things or, you know, my sword is bigger than yours do, I will always beat you at
games, tend to be at least, see play in culture tends to be around much larger set of beliefs and practices and have it. Play some dice that you Trying to get your stones from one place to the next teacher. Some relief, fundamental social political opponents. If you are a single Stone by yourself on the individual tents out in the desert, that's something that's of course bilty you're much better off clumping together as a group, is a simple rule that you were stuck in the game, the roll of the dice God's will. If
the principles that govern notches higher key on monarchy in a gives us a sense of structure and it speaks to and it's obvious manifestation of the societies Answer me, then it kind of gets the point. Here is to say that games, often provide epistemic access to very large abstractions that. So, how do we make sense of a middle eastern Jew political conflict? That makes it? So, that's on the news all the time that's in my will. But I can't really make a tangible identity, see a lot of changes, a lot of
things running. Now we can for the first time really, creating different ways to protect ourselves. What is it? Like, who do I want to be? If I have free range of being anyone? What's my main character? What are there about? And of course, there is a lot of Gaming Chairs. You're the normal street, that's the phenomenon of the game at the same time. There was no one in the room when Kylie Jenner and a test idea but no insurance. Please Lord, let's not do this today. Did you see Moses coming down the mountains that I care is the thing that everybody's going to Vons
and Stater? Nobody wanted it. And Magic leap is a hold of their first starts to become the way of doing business in getting the strategy becomes very becomes outdated. One form in which, I believe the games has Jesus forgiven, as much flexibility. Is it what companies like Salvador generate about $500 a year and if they do so because everybody's capable and they have two accounts with. But there is not some weird hiring construction, give him a lot of not one but four billion-dollar franchise
owner's name greatest, which is so more, you give people access to resources, the better. Have we also have to consider of course, retail in that context, like, conventional Industries have been having a hard time after years of declining sales and use Toys R Us finally bit the dust, but it also probably was the final straw things, like fidget spinner supposed to get some super popular and they go against the grain when it comes to Conventional toy design for manufacturing and distribution and marketing
process. All of a sudden fidget spinner, should you hit them sideways? And so that doesn't help if your Amazon, of course, is always to be having a hard time with that and then games retail seems to be still alive. So in many ways, I believe so much a promising companies. Manage to do so well, as opposed to a Tower Records or because it has a really well-thought-out innovative business aggressive when it comes to, you know, knowing that it's not the fourteen-year-old, that's fine, games is Mom and
Dad. Write the Isles are big enough for all of the fairies have entering this weird video game score of the last 20 years. We've been talking about this and it never comes to pass. That hasn't left anything to do with suspected, but we better make hay. At the same time. You coming? What if we add Digital Services in during the launch of the PlayStation 5? A lot of success around the new Xboxes, the Nintendo switch sales has a lot to do with the fact that most of their revenue. Now comes the
big red streaks that follows the launch of your hard work, they managed to break that cycle. You see here and it's in the garage. So you see the red logic every time they launch new device, it goes way into the red and then slowly by selling software breaks out of it again because Anaya vigil service it. Because, if PlayStation Plus Music, 48 million subscribers are PlayStation 2. Mission were a conventional industry responds better. That's not just interesting to note that happens on a billion a year
in case, it's Tony from his PlayStation. That's a really big tank. If I meet at the religious seeing you the minds of our hands and then you have the companies on the other end, where things really turn around and they manage to think creatively about strategic challenges. So then, where does that leave us for the future? Like what's the thing to calm? My mind goes to examples from the work that I've done over the past for instance, working with a PayPal, PayPal is one of those firms that spun off of it and since then has managed to become much more valuable
and people that they should be used as a payment plan to pay for what they've done. Well is over part of that success was their ability to use and leverage identify as they knew that some credit card. How to get people to create PayPal account. And spend all kinds of entry point, for a lot of people logging into all my spending, and you find that at that's what game are, easy motivated and they're willing to take a chance of things. Did the same to me because you also see that now in terms of AC switching to cancel platform as a lot of, how about going on a mobile?
Suddenly we have Amazon Google and they're trying to take some of their Eternal capacities with their Cloud Gaming facilities. We should be part of the break-in, Sunday gaming, HD enough to be retired, Jeff Bezos to be part of that conversation and you have not two or three but have several billion dollar company slogan to become a dominant platform. And of course, that leads to the inevitable circumstance where you have lots of your billionaires, trying to do get out of here right now, have a conversation between epic games and Apple App Store, it's
going to be interesting to watch because everybody Loves You, No Mono, Mono combat between a bunch of dudes and you just get to say and do everything at once. At the same time it's going to change drastically Sonic. Sonic I'll give you a quick run-through in his remaining Minnesota House of houses. People look based on consumer Behavior, play experiment, navigate to explore space. Heaters are invited to come lose our moments. But that's going to continue to
talk about in a shared experience. Of this is an example from conventional to hang out together in Pokemon go. Beefaroni universe and they hang out of one game franchise Halo Universe life. And that's where they would come to my house at the Barclay Center, celebrate, and enjoy seeing that they don't get to do any public. And it's okay to hang out. And we can do this online releases in the games industry, Indies online universities that makes sense for us to category of course. Of course, we have all the
fixings. I want to get the cool mechanical keyboard, that's on her 50 bucks. I want to get the cool glowing by staying to special miles to the button that's just suffering. Step is that we're going to see you know what YouTube video, we're going to see things like magic or in Roblox and they're going to be people want to know. It's not just that I think it's a great idea of Roblox. I guess that's in the words of one of the character Community Credit six times seven times in a month.
Elisa stands with DVD participation rate and we have the result of a different version of millions of people created it put into the game and set them in packs. What's a driven? You start to see things I can merge. Instead are starting to get the hang of emerging around digital asset value car seat value, I can sell those, I can trace it and I believe that that gives us at least part of a blueprint. Common have consumers want to be participating in. So, as I mentioned before, I'm very grateful to
the one thing that unifies my classes is 1 questions by show of hands. Who is who's play Pokemon now, or in the past and I have to disarm, all of the, will they all raise their hands at night? So I don't believe that any of these behaviors are normally. So I believe that this is my name is Jose.
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