Mitch and Blake take on the complex topic of in-game economies. They discuss how the endemic problems of trust and arbitrage were present in the earliest in-game economies of the late 1980 and how they have persisted to the present web3 economies. They look at the concept of mudlfation, a unique economic problem of massively multiplayer online games, and the strategies for controlling it, as well as the idea of economic play. Mitch talks about how gold farming and real-money trading were early antecedents of play-to-earn, before taking a look at early web3 economies. They end the episode with a discussion of the speculator problem in web3 gaming, and Mitch explains the trust and gifting based economy of Jenova Chen's Sky. The Story of Habitat Axie Infinity hack Raph Koster on "fun" in virtual economies Under a Killing Moon "Mudflation" 'Flation (Koster) Play Money (Dibbell 2007) Castronova on Everquest GDP CS:GO Skin Economy Explained EVE Online (How Money Works) Is Crypto VC Strategy Securities Fraud? Sorare Sky economy

Mitch and Blake discuss the recurring industry obsession with the idea of virtual reality, beginning in the mid-1980s. Mitch recounts a story about his encounter with VPL and the weird world of digital artists and promoters in the early days of personal computing. They look at the second failed wave of VR investment in the 1990s and the importance of Neal Stephenson's Snow Crash. Mitch talks about how Linden Lab's Second Life anticipated many of the ideas of the modern metaverse. They then look at the Oculus, and Facebook's decade-long failure to generate momentum behind a new wave of virtual reality, and what Apple's entry into the market may mean. They conclude with a look at the idea of the metaverse and its challenges. Links and Show Notes: Mondo 2000 magazine Mark Pauline - Survival Research Labs Neuromancer (William Gibson, 1984) “Spawn of Atari” (Wired Magazine) VPL “Murder She Wrote” VR Episode Hasbro’s Toaster VR Project Snow Crash (Neal Stephenson, 1993) Ready Player One (Ernest Cline, 2011) Beat Saber The Metaverse (Matthew Ball, 2022) Raph Koster’s “real talk about a real metaverse”  

Mitch and Blake debate the continuing relevance of dedicated gaming consoles to the video game business. They begin with a discussion of the economics of the console business, and how console manufacturers built defensible moats that have remained relevant for over 40 years. Mitch compares the current state of the console business to the theatrical feature film business -- and how both have become the domain of big budget blockbusters with cultural significance but dwindling market share. They discuss the history of Nintendo, how its often-contrarian business strategy has paid off over time. Mitch explains how a lawsuit with Nintendo got him into the video game business. They conclude with a look at Sony and Microsoft's different responses to cross-platform play, as powerful platform-based publishers like Epic challenge the traditional console model, and what it means to the future of the business. Links & Show Notes: Atari Alex St. John Xbox GDC Launch Video Nintendo Playing Cards (1889) Valve’s Hardware History “Iwata chooses violence” Pokemon GO / Niantic Atari Games v. Nintendo List of Cross-Platform Games (Q1 2023)

Mitch and Blake propose a framework for understanding user-generated content in games based on two central metaphors -- the playground and the stage -- representing the two ways users "create" content in games through play and performance. They discuss the rise of sandbox games, The Sims, GTA3, Runescape, Second Life, EVE Online, and Minecraft. Mitch explains the evolution of games as performance spaces, beginning with early machinima and progressing to YouTube videos and Twitch streaming. They conclude with a brief look at Roblox and Discord as two "third places" that people hang out online, and the influence of games on the future of social networks. Links & Show Notes: Bartle’s Taxonomy The Sims (WaPo article) GTA 3 (The Ringer retrospective) Second Life and lessons for the metaverse Empires of EVE Minecraft hits 1 trillion views on YouTube Machinima Starcraft on Korean TV (2008) Ninja and Drake on Twitch Roblox S-1 Discord

Mitch and Blake discuss how the rise of games-as-services has privileged durable, long-duration play-patterns -- leading to the modern idea of the "Forever Game" which can persist for decades. Mitch outlines his five attributes of long-term engagement and provides examples of each from games like Ultima Online, World of Warcraft, Age of Empires, and League of Legends. They look at the two distinct strands of long-duration play that emerged in the 1990's -- the massively-multiplayer online role playing game and the session-based online competitive game -- and how those genres evolved and cross-polinated to produce multi-billion dollar online games that have remained viable for a decade or more. Links & Show Notes: Bill Gurley on LTV Island of Kesmai Bran Ferren I/ITSEC The Assassination of Lord British Lineage AoE2: Red Bull Wololo 2022 World of Warcraft Fortnite