• 0 Posts
  • 28 Comments
Joined 1 year ago
cake
Cake day: June 1st, 2023

help-circle





  • nooneescapesthelaw@lemmy.mltoMemes@lemmy.mlIts getting old.
    link
    fedilink
    arrow-up
    1
    arrow-down
    3
    ·
    10 months ago

    The means of production are not entirely owned by a seperate class nor is the barrier to entry for many industries so high that it is entirely impossible for the average joe to enter.

    Sure some industries are nigh impossible to get into, like pharmaceuticals for example, there are much bigger industries that have lower barriers like machine shops (which are really medium entry but you can scale them), and manufacturing via 3d print hubs.

    Not to mention aoftware development which is a fucking wonder when it comes to potential money vs barrier to entry.

    Certain construction contractors and engineering consulting firms can be opened up with fairly low barrier to entry.

    I’m sleepy so my replies may not seem very coherent so tell me if you don’t understand what im saying








  • The email: Spencer writes,

    Over the past 5-7 years, the AAA publishers have tried to use production scale as their new moat. Very few companies can afford to spend the $200M an Activision or Take 2 spend to put a title like Call of Duty or Red Dead Redemption on the shelf. These AAA publishers have, mostly, used this production scale to keep their top franchises in the top selling games each year. The issue these publishers have run into is these same production scale/cost approach hurts their ability to create new IP. The hurdle rate on new IP at these high production levels have led to risk aversion by big publishers on new IP. You’ve seen a rise of AAA publishers using rented IP to try to offset the risk (Star Wars with EA, Spiderman with Sony, Avatar with Ubisoft etc). This same dynamic has obviously played out in Hollywood as well with Netflix creating more new IP than any of the movie studios.

    Specifically, the AAA game publishers, starting from a position of strength driven from physical retail have failed to create any real platform effect for themselves. They effectively continue to build their scale through aggregated per game P&Ls hoping to maximize each new release of their existing IP.

    In the new world where a AAA publisher don’t have real distribution leverage with consumers, they don’t have production efficiencies and their new IP hit rate is not disproportionately higher than the industry average we see that the top franchises today were mostly not created by AAA game publishers. Games like Fortnite, Roblox, Minecraft, Candy Crush, Clash Royale, DOTA2 etc. were all created by independent studios with full access to distribution. Overall this, imo, is a good thing for the industry but does put AAA publishers, in a precarious spot moving forward. AAA publishers are milking their top franchises but struggling to refill their portfolio of hit franchises, most AAA publishers are riding the success of franchises created 10+ years ago.