Game Theory

Game publishers used to suffer from “lumpy” annual revenues, attracting players to buy physical releases every five years or so—with a drought of income streams in-between. But they’ve come a long way: portfolio diversification; digital downloads and distribution; add-ons, DLCs, and live services with in-game monetization; platform expansions; and investments in new IP have all driven significant multiple expansions and value creation for players, developers, and shareholders. Few companies signify this transformation like Take-Two Interactive, which owns Rockstar Games, 2K, and Zynga. In this episode, co-hosts Moritz Baier-Lentz and Hemal Thaker sit down with Strauss Zelnick, Chairman and CEO of Take-Two. Strauss talks about how his commitment to serving others, be it in the office or at the gym, influences the way that sets goals and shapes company culture. They also speak about his storied career in the media and entertainment business; including turning around RCA Records after signing Dave Matthews. War stories like these turned out to be a mere prologue for what awaited Strauss after his takeover at Take-Two—a then distressed company in much need for a new North Star.

Video games have long been maligned for contributing to the already sedentary lifestyle of most modern people. But our first interactions with play during childhood—pretend games and imaginative adventures—are inherently physical. Cue the arrival of Pokémon GO, a pioneer in location-based gaming that has brought hundreds of millions of players back into the great outdoors. In this episode, co-hosts Moritz Baier-Lentz and Hemal Thaker talk with John Hanke, Founder and CEO of Niantic Spatial, the developer behind Pokémon GO. John shares how his history at Google Maps, early location-based experiences like Ingress, and Niantic Spatial’s ambitions have shaped a company that’s known for its games, but has—along the way—built geospatial models for blending the real and virtual worlds. The three also explore the evolution of location-based games beyond phones, making AI “street smart,” and Niantic Spatial’s progress in building a map of our world that’s designed for the understanding of machines, including humanoid robots.

The best video games immerse players in enchanting worlds and novel experiences. To get there, the best video game engines level the playing field so that the creation of entire virtual universes is democratized and accessible to anyone—from AAA veterans to indies and novices bursting with ideas. In this episode, co-hosts Moritz Baier-Lentz and Hemal Thaker sit down with Matt Bromberg, the President and CEO of Unity, the development platform used by millions to build and grow games across devices. Matt discusses Unity’s pivotal role in game development, as well as the culture it fosters that has made it the bedrock of the game development industry. Together, they speak about existing bottlenecks for developers, integrating generative AI into its engine, and Matt’s insights on Unity’s role in providing the tools to help build better businesses and games. Along the way, Matt opens up about why he was attracted to taking the CEO role of an admittedly troubled Unity: the rewards of choosing a challenge of impact, and the joys of “falling in love with doing the right thing.”

Engaging, retaining play is an art and a science.  That’s why Scopely, a mobile-first video game developer and publisher with increasing cross-platform ambitions, creates an environment for its employees where people feel comfortable to innovate beyond preconceived notions—all in the spirit of creating emotionally significant moments for its players. In this episode, co-hosts Moritz Baier-Lentz and Hemal Thaker speak with Walter Driver, the Co-Founder and Co-CEO of Scopely. Walter shares how seeing the culture of building games at Scopely as not unlike a game itself has led to the creation of a “learning machine.” The three also explore how Scopely focuses on building interactive experiences for longevity, the company’s recent acquisition of Niantic, and why his background in literature and creative writing remains essential to Walter’s work.

Most gamers used to identify first and foremost with the console they played on—i.e., “I’m a PC gamer,” or “I only play on Xbox.” But increasingly, the rise of cross-platform gaming puts the player—not their device of choice—at the center of the experience. Allowing gaming experiences to enchant their players at any time, and anywhere. In this episode, co-hosts Moritz Baier-Lentz and Hemal Thaker talk with Sarah Bond, the President of Xbox at Microsoft, arguably the world’s largest gaming platform with over 500 million monthly active players. Sarah speaks about the importance of play as being key for taking risks and learning, and for developing one’s sense of self and resilience. The three also explore what Sarah calls the “power of anywhere”, how AI can enhance the player experience, and how Microsoft’s fabled history as a top company for its 50-year history will inform its future endeavors.

Video games have seen and even catalyzed innumerable technological advances in the past decades, from decision trees, GPUs, and distributed multiplayer experiences to mobile screens and extended reality, cross-platform play, digital distribution, live services, user-generated content, and—most recently—artificial intelligence. But what if we were still only in the “Stone Age of gaming,” especially when coupled with new generative media capabilities? In this inaugural episode, co-hosts Moritz Baier-Lentz and Hemal Thaker sit down with David Baszucki, the Co-Founder and CEO of Roblox, the pioneer of player-created interactive experiences—also known as user-generated content (UGC). David talks about how the vision for the platform originated from an educational physics simulation engine, and Roblox’s evolution from a niche platform to a leading innovative ecosystem in the gaming and creation world. The three also discuss the role of UGC on the platform, how safety and civility factor into game design, and where David is placing his bets on AI.

Game Theory, a new video podcast from Lightspeed and Goldman Sachs, in partnership with McKinsey, takes a look behind the curtain of the industry-defining gaming & technology companies—and explores how play is changing everything. Featuring insights and untold stories from Founders, CEOs, and Presidents—including David Baszucki (Roblox), Sarah Bond (Microsoft Xbox), Strauss Zelnick (Take-Two Interactive), Matt Bromberg (Unity), and more—the series dives into how play has shaped consumer behavior and technological innovation for decades. In a candid format, each episode explores a different dimension of play and how it has influenced the guests’ personal and professional lives. Game Theory is co-hosted by Moritz Baier-Lentz, Partner at Lightspeed, and Hemal Thaker, Managing Director at Goldman Sachs. Subscribe to the show on YouTube, Apple, Spotify, or wherever you get your podcasts, or visit www.lsvp.com/gametheory for more episodes on Wednesday, June 4th.