Umair Haque / Bubblegeneration
umair haque  


Design principles for 21st century companies, markets, and economies. Foreword by Gary Hamel. Coming January 4th. Pre-order at Amazon.

Monday, January 02, 2006

How Not to Think About Strategy, pt 38239

"...Added Michael Pachter, an analyst with Wedbush Morgan Securities: "At the end of the day, we don't play games for social interaction � We play games to escape." Microsoft's strategy is "absolutely flawed," he said."

Link. Again, Pachter mystifies me. I think his research is pretty good. So this quote is really surprising - because there's a massive, enormous existence proof that what he's saying is totally wrong - the hypergrowth in online games across the world. Has he checked out NCSoft?

Of course social interaction is a massive source of value creation in games - or that games realize network effects. The reason: any gamer with half a brain knows it's more fun to play against a human than versus an AI. And this utility increases nonlinearly in the number of players.

Or you can think about it quantitatively; just run the numbers for, say NCSoft, and you'll see the evidence.

It's not just MS that's investing in the social - so is Nintendo (WiFi hotspots) and, I would guess, Sony.

-- umair // 3:01 AM // 0 comments


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