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VC firms, game studios, and movie studios all operate using the same “blockbuster business model,” meaning they expect the profits from one of every ten deals t

VC firms, game studios, and movie studios all operate using the same “blockbuster business model,” meaning they expect the profits from one of every ten deals to pay for the losses of the other nine. Maybe the lesson is that multiple blockbuster models interfere with each other when combined into one venture? It seems kind of like how you can’t make an infinite chain of hypervisors.

hn_throwaway_99 4y ago
With VC funding, though, once they find that one blockbuster business, they expect it to be able to grow exponentially because it has a defensible, unique "special sauce" that is scalable. With games, though, one successful game or franchise rarely guarantees additional successful games or franchises. In some ways it's "catching lightning in a bottle", and very difficult to repeat, even if you have the same inputs (designers, programmers, funding).
- bluefirebrand 4y ago
  The problem is that they almost never actually have the same designers, programmers, artists, writers, or funding or anything. From what I've heard, the game industry is notorious for laying a lot of the staff off after a game project before they even know if the game is successful or not. Then they might bring those people back for a sequel if they are still available when they start making it.
  - pjmlp 4y ago
    One of the things that killed my interest in working in the industry is the working conditions, and the expectation that many employees are actually one person company contracting for the next gig. So on top of all the known issues, one can be let go at any time.
- formerkrogemp 4y ago
  > catching lightning in a bottle I think in our oncoming age of batteries that this expression could have new meaning.
BurningFrog 4y ago
I think it's that the "blocks" are much smaller for games/movies than for tech companies. A great game or movie can make a ton of money. But a great tech company can make 2-3 orders of magnitude more.

hn_throwaway_99 4y ago

With VC funding, though, once they find that one blockbuster business, they expect it to be able to grow exponentially because it has a defensible, unique "special sauce" that is scalable. With games, though, one successful game or franchise rarely guarantees additional successful games or franchises. In some ways it's "catching lightning in a bottle", and very difficult to repeat, even if you have the same inputs (designers, programmers, funding).

bluefirebrand 4y ago
The problem is that they almost never actually have the same designers, programmers, artists, writers, or funding or anything. From what I've heard, the game industry is notorious for laying a lot of the staff off after a game project before they even know if the game is successful or not. Then they might bring those people back for a sequel if they are still available when they start making it.
- pjmlp 4y ago
  One of the things that killed my interest in working in the industry is the working conditions, and the expectation that many employees are actually one person company contracting for the next gig. So on top of all the known issues, one can be let go at any time.
formerkrogemp 4y ago
> catching lightning in a bottle I think in our oncoming age of batteries that this expression could have new meaning.

BurningFrog 4y ago

I think it's that the "blocks" are much smaller for games/movies than for tech companies. A great game or movie can make a ton of money. But a great tech company can make 2-3 orders of magnitude more.