Ahri's unqualified thoughts #69

Easy to consume content: 1 quote, 1 tweet/storm and 1 article/video.

In this edition, our focus is twofold: first, we take a look at a tweet giving a nice framework to think about games with financial incentives, and secondly, at an article focusing on the situation around the famed developer behind Destiny: Bungie.

1 quote

“A man cannot be comfortable without his own approval.”—Mark Twain

1 tweet/storm

The timing of this tweet is excellent, as it touches on a topic I frequently think about and discuss with friends. Just this morning, I was trying to explain a specific framework for investing in web3 games to a friend during a call, and this chart perfectly reflects my approach - on top of other elements that aren’t necessarily pertaining to the financial performance.

In contrast to traditional gaming where earning money could involve buying and selling a company's stocks, crypto games offers alternative avenues (for better or for worse) like tokens, NFTs, etc.

However, as apix points out, not every game presents a viable opportunity. Hence, proceeding with caution is the best possible way. In my humble opinion, currently, there aren't many games fitting into the top-right category, which reassures me in my strategy to quickly flip for profits and move forward.

1 article/video

This year has been simply outstanding in terms of game releases, probably one of the best ever. Yet, it simultaneously ranks among the worst for employees due to layoffs and cost-cutting measures. See for yourself: Game Industry Layoffs blog.

Bungie, acquired by Sony in July 2022 and renowned for the Destiny franchise, also faced significant layoffs recently and is reportedly in a terrible position. This is based on multiple interviews conducted by Rebekah Valentine from IGN with both current and former employees.

It was with this threat (note: Sony board takeover) looming that Bungie leadership - not Sony, according to Parsons - made the choice to lay off roughly 100 employees last month. But the cost-cutting at Bungie isn’t limited to just personnel. Multiple current employees confirmed to IGN that the company has implemented numerous other cost-cutting measures recently, including a studio-wide hiring freeze, reduced travel budgets, elimination of holiday bonuses, keeping its annual Bungie Day virtual, delaying its weeklong company “Pentathalon” event to next December, and reducing numerous morale events such as cooking and knitting classes from monthly to quarterly. Bungie is also pausing or fully ending benefits like annual employee compensation adjustments to meet market rates, its new hire lunch program, employee donation matching, its peer recognition program, and gift cards for employees birthdays. And yearly studio performance bonuses this year will only be the contractually obligated 80% minimum, after being above 100% for good performance several previous years running.

The article paints a picture of the current work environment at Bungie, which, as expected during layoffs, is far from cheerful, with the possibility of more job cuts looming.

This situation is yet another tale of a renowned studio, brimming with talent, struggling to reinvent itself… and meet financial targets.

It’s a sad state of affairs, and once more, I just (foolishly?) hope that everyone finds an amicable solution and happy end.

Note: in discussing the perspectives of the employees, management, Sony, or any other party involved, it's important to remember that every story has three sides: Person 1's, person 2's, and the truth, which usually lies somewhere in between.