Gavin Baker @GavinSBaker Husband, Becky Painter. CIO, Atreides Management. Former PM, Fidelity OTC fund. No investment advice, views all my own. Jan. 06, 2020 1 min read

1) Superb. Value of videogame IP is rapidly increasing, yet still feels misunderstood.

It's the only kind of entertainment riding Moore’s law and has been taking revenue and engagement share from all other forms of entertainment for the last 40 years. 

2) Despite this 👇, the best AAA videogames still only monetize at 65% of the average cable channel and roughly 25% of live sports on a per hour basis.

3) Undermonetization is even more striking given that AAA videogames are more immersive and have more ways to monetize than other entertainment mediums.

Moving towards F2P or hybrid F2P models is likely the way to improve monetization. 

4) These are not hit driven businesses. The top 10 games are remarkably stable as @ballmatthew points out and they are arguably better franchises than the best movie franchises. CoD was the #1 seller every year since 2009 ex GTA/RDR years when it is #2 

5) @ballmatthew's idea that gaming has now recreated all the elements that made TV so successful is powerful. Interested to see if it really is at a Fortnite created "cultural tipping point."

Regardless, Fortnite and smartphones are important new entry points beyond Nintendo.

6) Only thing I would add is that I do think the Witcher’s success will change how both media and videogame companies look at videogame IP for film and TV. Historically has been disappointing, sometimes to the detriment of the game. Not this time.

7) Still amazed that the 4 year old Witcher 3 and 12 year old Witcher have hit all time player count highs on Steam. Absolutely unprecedented for single player games that old.

8) And of course, being foundational for the Metaverse is the ultimate long term bull case for videogame IP.

The Metaverse/Oasis/Matrix is already here in the same way that the internet existed in the 1990s. 

You can follow @GavinSBaker.


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