The NFX Podcast
We believe creating something of true significance starts with seeing things others do not. NFX is a venture firm exclusively focused on pre-seed & seed stage startups.
Ep 10: Network Effects In Gaming (NFX Masterclass)
We are in the first wave of web3 games, and some believe that games don't have network effects built into their development or long-term strategy. In this episode, listen to NFX partner Gigi Levy-Weiss as he dives into the world of defensibility within the gaming industry, sharing the 4 layers of network effects, the future of virtual goods, and a case study on Steam - the leading platform for video game development.
Key Points
- Network effects in gaming create significant defensibility and value, with top games remaining on the charts for years due to their interconnected layers of user interaction and engagement.
- Steam's success as a game distribution platform is attributed to its complex network effects, including a multi-layered marketplace, integration of user-generated content, and a strong sense of user identity and community.
- Despite the challenge of competing with Steam's robust network effects, Epic Games Store's attempt illustrates the difficulty of replicating such defensible marketplaces without matching the layered network advantages.
This is an audio version of episode 10 from The Network Effects Masterclass, curated for audio and listening on the go. For the full video experience, transcripts, and recommended reading, join the free Network Effects Masterclass at - NFX.com/masterclass.
Chapters
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Transcript
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