Thinking through questions, ideas and opportunities in video games
I don’t play video games, and I don’t know very much about the industry, but after listening to this episode of EconTalk: Josh Williams on Online Gaming, Blockchain, and Forte, I’m fascinated by the opportunities video games present.
I recommend listening to the episode all the way through, even if — especially if! — you’re like me and not all that into video games.
The discussion sparked a lot of questions and ideas for me that would be fascinating to work on, and also just fun to chew on as a thought exercise.
In this article, I list out 13 of my initial questions, ideas and takeaways. I’d welcome any feedback or additional perspectives to continue the conversation.
1. I see big opportunities in assisted living, retirement communities and senior care facilities. Playing online video games together can a) facilitate social engagement and interpersonal connections with loved ones patients can’t see in person; b) increase camaraderie and strengthen relationships with friends, neighbors and staff at the facility; c) offer staff, nurses and caretakers a new way to check-in on and communicate with their residents (eg in-game pop-up reminders to take medications, or video game performance monitoring to alert nurses of abnormal in-game behavior that may indicate declining health in real life); d) be targeted to conditions, such as memory care units, with games specifically designed to activate and exercise (and even study) mental and memory tasks say for those suffering from Alzheimer’s disease or dementia.
2. Big opportunities in prisons. I hate to compare assisted-living communities to prisons, but many of the same benefits and opportunities listed in item number one above also apply to those living in incarceration. Further, the social engagement and collaborative aspects of video games can be designed to help treat those suffering from addictions, PTSD, aggression, mental disease; and they may be a great way to maintain contact with family on the outside.
3. Gambling: The EconTalk episode didn’t address the potential for gambling on video games, but it seems like there’d be a lot of interest, say to bet on e-sports. The obvious obstacle is that it’d be tough to ensure transparency and consistency among video game developers, and the code used for each game, to ensure fair play. On the other hand, companies like Forte (featured in the podcast linked above) may be the ones get that job done, say with a third-party audit for each tournament or game — maybe like a code a weigh-in before the bought, an independent in-game code monitoring official, and a post-game evaluation of the game logs.
4. Compliance and training: I bet there’s a ton of work and research already done in this area, but it seems like video games (beyond just virtual reality renderings of real-life scenarios) would be a great way to improve the way organizations and regulators implement practices to ensure compliance and safety. Rather than your typical video with a few quiz questions, an online video game would be just as easy to distribute, but also be more fun and engaging. Plus the concepts would stick better if absorbed through effortful gamification rather than rote repetition.
5. Forte (again, the company featured in the interview) seems like the video game version of Stripe. They’re both working to increase the GDP of the Internet; Forte is doing so specifically through video games. This also makes me think a company like Stripe may have an opportunity to either a) offer specialized services and offerings for the gaming market (if they don’t already), or b) buy a company like Forte.
6. Think of video games and developers as textbook Aggregators, per Stratchery’s Aggregation Theory. The games are walled gardens, with demand-driven networks that provide a direct relationship to users, with zero (or probably super low) marginal costs. Through this lens, I’d bet the next Facebook (the Aggregator of all Aggregators) — or the next big Facebook acquisition (Oculus VR aside) — would be some form of a video game company. Another way to think about it is that each game (or franchise) is its own App Store.
7. Still thinking through Stratechery frameworks, I wonder: where are we in terms of the video game industry’s competition and disruption curve? Are there lots of new games, brands and businesses still starting up, gaining steam and challenging each other, or are they coalescing around a handful of powerful incumbents who are launching all the most popular and successful games? In other words, are we approaching The End of the Beginning for video games, or is it still early days? My naive guess would be the former.
8. Video game social media managers. Remember how 10 years ago companies were developing new social media manager positions to manage their brands on “emerging” channels like Facebook, Twitter and YouTube? I do, because I was one of them newfangled social media whippersnappers! Seems like the brands have a big opportunity to leverage presences in online video games for the same purposes and benefits. This could happen in various ways: 1) digital ads or virtual booths at online concerts or events, say offering customer service or support for anyone who needs it; 2) brand-centric or company representative players in the games; 3) company video game developers who design and sell in-game digital wares; 4) events or games owned by businesses that incorporate their services; 5) the ability to pay your bill or buy products using in-game currencies. The list goes on, and just like how every company has a social media strategy now, every company may want to think about developing a video game strategy too.
9. Big opportunity — sadly, scarily, threateningly — for politicians and campaigns. Even though it’s probably a much younger demographic, many of whom can’t vote yet, politicians can use video games as a way to start building relationships with voters of the future. Obviously this brings all the associated baggage of politics with it too: propaganda, fake news, mind-numbing rhetoric, incentivized extremism. Or, maybe it’s easier to spot a fake in a video game than in a news feed or TV show.
10. Video-game team-building opportunities. Think of it like a virtual escape room, or a video game retreat. This could be especially useful for the COVID-19 era, as a new way for socially distanced teams to get together (virtually) and have some fun.
11. Online dating opportunity (stay with me here): video games can connect to dating profiles, and the system can facilitate chats or activities among players with similar profiles who may be a good match. Furthermore, in the COVID-19 world where many first dates take place on a video chat, maybe it would be more fun to gamify that first “date” and incorporate video game activities and challenges. Granted, not as fun as the real thing, but a nice stop-gap for the COVID-19 era.
12. There has to be an opportunity for nonprofits, charities and community service organizations to leverage video games. The first thing that comes to mind is pretty basic: just finding ways for nonprofits to partner with video game developers, who would then donate proceeds from virtual event attendees or game players. There’s gotta be another more sophisticated angle though; maybe something that incorporates the charity’s mission into the game-play? Perhaps it revolves around partnering with the in-game developers? Even then, it’s more about generating donations, rather than actually benefiting the cause or having an impact, right? Will have to think on this more.
13. Exciting as they are, these virtual and video game opportunities can’t replace real-world experiences and relationships. For example, just because I can say, take a video game virtual hike up Mt. Whitney, doesn’t mean I don’t want to take that epic hike in real life. I see video games — and really, the smartphone-dependent components of our lives that already exist — not as replacements, but as enhancements — opportunities to complement, expand and enrich our real world lives. That said, in a COVID-19 world, these virtual experiences can play an outsized (and hopefully relatively temporary ) role in bridging the gap for the time being.