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. Mar. 15, 2020 1 min read + Your Authors

1) Working from home and no school are pulling the Metaverse forward.

Parents trying to be productive are giving their kids free rein for gaming - probably the first time it’s ever been encouraged.

Videogame engagement and revenue increasing sharply per various data sources.

2) Steam players at an all time high. Players up 17% YoY so far in March vs. up 4% in December - the fastest YoY growth in years and accelerating.

Anecdotally, Xbox Live and PSN are struggling with player load with significant lag across most games.

3) Videogame monetization is highly correlated with engagement. Spending more time playing videogames drives more revenue through MTX.

Spending more time watching an SVOD service doesn’t *directly* drive more revenue (obviously lowers churn).

4) Generally speaking, videogame monetization increases faster than engagement as need for variety in skins, emotes, weapons, etc. increases nonlinearly relative to time spent.

This means that most videogames effectively have usage/engagement based pricing.

5) Usage/engagement based pricing is better than subscription based pricing when engagement growing really fast. Life is all about trade offs.

6) Interested to see what happens with Twitch - and eSports to a lesser extent - given that professional and college sports have shut down.

7) And would love to know what % of people working from home on conference calls are simultaneously playing a videogame. 😃


You can follow @GavinSBaker.



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