Gavin Baker+ Your Authors @GavinSBaker Husband, Becky Painter. CIO, Atreides Management. Former PM, Fidelity OTC fund. investorfieldguide.com/baker/ No investment advice, views all my own. Feb. 22, 2020 1 min read + Your Authors

1) Smart videogame analyst noted that DLC/MTX monetization - season passes, items, emotes/dances - is difficult with an annual release schedule that destroys the value of that content annually.

Important contributor to evergreen F2P games monetizing better than annual releases.

2) Status doesn’t have value when it is destroyed every year like clockwork and everyone knows it is going to be destroyed. And the most valuable videogame DLC/MTX all revolves around status.

Status as a service is such a valuable mental model. Grateful to @eugenewei

3) I had always thought that gamers were just more reluctant to pay for MTX after they had paid $60 for a game vs. a F2P game.

But I was wrong - this is only part of the story. Evergreen vs. annual release schedule is at least as important.

Important to always be learning!

4) Part of why FIFA is a great franchise. The real world drives changes to status AND the meta which makes the MTX (FUT) valuable despite it being on an annual release schedule with ensuing status destruction.

Although it needs to move away from loot box mechanics (a risk).

5) Still think Destiny offers a really clear, healthy path forward for most of the big games that are on an annual release schedule.

Apparently it is wildly outperforming post the move to a new monetization model.

6) Destiny’s new monetization model is a great way for publishers to have their cake ($40 expansion every two years) and eat it too (status is maintained for years so DLC/MTX content has much higher value and therefore monetizes better). And it is working.

GaaS! 😃


You can follow @GavinSBaker.



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