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a16z Podcast | Gaming Goes Mainstream
22 segments available
Bobby Kotick is the CEO of Activision Blizzard (a merger he engineered); it's one of only two video gaming companies in the Fortune 500, and the largest game network in the world. The company is responsible for some of the most iconic entertainment franchises, including Call of Duty, Candy Crush, Overwatch, and World of Warcraft -- as well as its own professional esports league. So in this episode of the a16z Podcast, Marc Andreessen interviews Kotick on everything from the evolution of video games in the 1980s to gaming trends more broadly. What changes as gaming goes from "just for nerds" to "just for kids" and spreads more broadly into entertainment and cultural phenomena (esports, Fortnite, Pokemon Go, etc.)... both online and offline? The conversation originally took place at our annual innovation a16z Summit in November 2018 -- which features a16z speakers and invited experts from various organizations discussing innovation at companies small and large. You can also see other podcasts and videos from this event here: https://a16z.com/tag/summit-2018/
Segments Timeline
Welcome to the a16z Podcast
In this episode of the a16z Podcast, Marc Andreessen introduces Bobby Kotick, CEO of Activision Blizzard, the largest game network globally. The discussion covers the evolution of video games from the 1980s to current trends, including esports and the cultural impact of gaming. This segment sets the stage for an in-depth exploration of gaming's mainstream rise.
"hi everyone welcome to day 6 and see podcast today's episode features Marc Andreessen interviewing Bobby Kotick CEO of fortune 500 company Activision Blizzard the largest game network in the world res..."
Bobby Kotick's Origin Story
Bobby Kotick shares his journey into the gaming industry, starting with writing software for the Apple II during college. He recounts how he and his college roommate aimed to create software for the Apple II, inspired by Steve Jobs and the early days of personal computing. This segment highlights Kotick's early entrepreneurial spirit and the influence of iconic figures in tech.
"please note that the content here is for informational purposes only should not be taken as legal business tax or investment advice or be used to evaluate any investment or security for more details p..."
Meeting Steve Jobs
Kotick narrates his memorable encounter with Steve Jobs, who encouraged him to drop out of college to pursue software development. This pivotal moment showcases Jobs' influence on Kotick's career and the early dynamics of the tech industry. The segment captures the excitement and challenges of innovation during the early 1980s.
"Jobs was gonna appropriate all the great technology from Xerox Palo Alto Research Center we should do the same to do it on a broader scale so we designed this man and word processor and a spreadsheet ..."
From College to Activision
In this segment, Kotick discusses his transition from college to becoming the CEO of Activision. He reflects on the company's history as a pioneer in third-party video game development and the challenges it faced in the 1980s. This narrative illustrates Kotick's deep connection to the gaming industry and his vision for its future.
"thinking about it and then he said can I show me yours and so like I had lugged this Apple to with like the 64 K floppy drive and this mouse that we designed that we put it on and I show him the mouse..."
The Activision Comeback
Kotick explains how he acquired a 25% stake in Activision during a time of financial turmoil. He shares insights into the company's legacy and the potential he saw in revitalizing its brand. This segment emphasizes the strategic thinking and risk-taking that defined Kotick's early leadership in the gaming sector.
"class he said in what I said it's a history of our makeup class he said what are you making up for I so I didn't go to the class he's like why do you need to go to this I said well I'm in college and ..."
Vision for Video Game Hardware
Kotick discusses his vision for video game hardware in the late 1980s, highlighting the lack of dedicated gaming systems at the time. He shares his attempts to innovate within the industry and the challenges he faced in pursuing his ideas. This segment showcases Kotick's entrepreneurial mindset and his commitment to shaping the future of gaming.
"get from building my senior above above the Burger King to buying Activision so in 1987 there were no real video game hardware companies and I played a lot of video games as a kid and I loved Activisi..."
Becoming Activision's Largest Shareholder
In this segment, Kotick recounts how he became Activision's largest shareholder and the challenges he faced in communicating with the company's leadership. He reflects on the potential he saw in Activision's franchises and his determination to turn the company around. This narrative highlights Kotick's resilience and strategic vision in the gaming industry.
"business and I had a little side business that was a licensing company we licensed characters so one of our licensing partners was Nintendo and we were licensing Nintendo characters for bedsheets and ..."
The Transformative Vivendi Merger
Kotick explains the strategic merger with Vivendi Games that led to the creation of Activision Blizzard. He discusses the timing of the deal during a financial crisis and the importance of acquiring Blizzard's successful franchises, particularly World of Warcraft, to solidify Activision's position in the gaming industry.
"thought well how does that work I'm I own 25% of the company I'm like in the lobby and he didn't return my phone calls for a little while and then he agreed to have breakfast with me at this Consumer ..."
Navigating Corporate Challenges
Reflecting on the complexities of corporate mergers, Kotick describes the challenges faced with Vivendi's management and their lack of understanding of the gaming industry. He shares anecdotes about synergy meetings and the humorous yet frustrating attempts to find common ground between the two companies.
"the likely is we wouldn't do a good job fit but it was a and I knew the blizzard team because we had worked with them on there were a contract development company in the early 1990s and I knew the tea..."
A Risky Deal for Long-Term Stability
Kotick discusses the rationale behind giving Vivendi a controlling stake in Activision, emphasizing his belief that they would not interfere with the gaming operations. He reflects on the risks taken during the merger and how it ultimately provided stability for Activision during turbulent times.
"so they had Universal music they owned Muraki Telecom up stake they owned SFR which is a French mobile company they don't count out police and somehow they managed as a part of a bunch of things to ow..."
The Beautiful Headquarters and a Misunderstanding
In a light-hearted moment, Kotick recounts a visit to Vivendi's stunning headquarters in Paris and a humorous misunderstanding regarding the building's use. This anecdote highlights the cultural differences and the challenges of navigating corporate relationships in the gaming industry.
"know would be enthusiastic about investing at least what they told us investing with us for the future so we went back and forth for a long time finally negotiated a deal where they would do that deal..."
The State of the Gaming Industry
Kotick provides insights into the current state of the gaming industry, describing it as a gigantic global phenomenon filled with opportunities and challenges. He reflects on the evolution of gaming over the years and the unprecedented potential for growth and innovation in the market today.
"it was the thing that actually allowed us to quit it's a big deal I mean it's really uncharacteristic for a company like this with a founder really of the modern business and then the CEO like you to ..."
Gaming as a Social Experience
In this segment, Kotick explains how video games have evolved into social experiences that foster global connections. He draws parallels between gaming and sports, referencing Nelson Mandela's definition of sport as a great equalizer, and discusses how gaming provides a sense of belonging and purpose for players worldwide.
"controversy so I would say of the 28 years I've been doing activision 30 some odd years I've been doing software I have never seen more opportunities than exists today markets that are opening and you..."
The Rise of eSports
Kotick reflects on the emergence of eSports as a major cultural phenomenon, comparing it to traditional sports. He shares insights from a panel discussion where he highlighted the competitive nature of eSports and its ability to engage audiences, emphasizing the unique spectator experience that video games offer.
"competition and that the great competitors in sport could come from anywhere and everybody felt this ability to have a sense of belonging and purpose and meaning and that is what video games has becom..."
StarCraft and the eSports Revolution
Kotick recounts the impact of StarCraft in South Korea, where it became a cultural sensation with millions of registered players and dedicated broadcasting channels. He discusses the challenges of commercializing eSports and the potential for spectator experiences to surpass the games themselves in popularity.
"more than anything is now what we see is driving consumption and engagement and interest and passion and we're just scratching the surface of opportunity right so I think you know people have obviousl..."
Designing Games for Spectators
In this segment, Kotick addresses the future of game design, emphasizing the need for games to be appealing to spectators, not just players. He discusses how the Overwatch League was structured to foster local affiliations and tribalism, which are crucial for the success of both traditional sports and eSports.
"we looked at as purely marketing you know the people are enthusiastic we saw the box there was nothing more to it than that and we managed to do every single thing wrong in commercializing the eSport ..."
Video Games and the Olympics
Kotick shares his perspective on whether video games will ever be included in the Olympics. He argues that the commercial nature of video games contrasts with the Olympic spirit, suggesting that the integration of video games into the Olympics may not be feasible due to differing values and objectives.
"is different than how video games have been designed up to this point yeah that's a great question so a lot of the games today were not specifically designed for spectating which is why you end up wit..."
The Dynamics of Gaming Fandom
Kotick discusses the passionate and sometimes critical nature of gaming fandom, highlighting how early adopters can influence game development. He reflects on the challenges that arise when fan expectations are not met, including protests and boycotts, and the implications for the gaming industry.
"enterprise you know there's not any they don't have that today and so I don't know that you could see the logical jump to the Olympics okay the video game industry seems to have a particularly cute ve..."
The Commitment of Gamers
Kotick elaborates on the significant time commitment gamers invest in their experiences, contrasting it with other media forms. He argues that this commitment grants gamers a voice in the development process, which can lead to valuable insights for enhancing games.
"so I think that the difference between film or television you know a great film you're gonna spend two hours of your life watching you know great TV shows gonna be 13 episodes or 22 episodes the seaso..."
Fortnite's Transformative Impact
In this segment, Kotick discusses the significance of Fortnite in the gaming industry, debunking the myth of its overnight success. He highlights how Epic Games leveraged the Unreal Engine to create a compelling social experience, broadening the appeal of gaming to new audiences.
"innovation so I'd like to ask you about two games that I think are arguably you know transformative from a conceptual standpoint for gaming and you tell me what you think or maybe describe that what d..."
The Phenomenon of Pokémon Go
Kotick examines the lasting impact of Pokémon Go, noting its impressive revenue generation even years after its release. He emphasizes the game's innovative use of augmented reality, which created a physical gaming experience that captivated a broad audience.
"require you to make a two hour a day investment you know you can have a 20 minute experience that is really satisfying but this is not accidental you know these guys have been doing is for a very long..."
Must-Play Games of the Year
In this closing segment, Kotick shares his recommendations for must-play games, highlighting Call of Duty: Black Ops 4's Blackout mode as incredibly fun and accessible. He also mentions Red Dead Redemption 2, praising its visual appeal and the enjoyment reported by players.
"people on a broad scale using a R besides Pokemon go but I would say when you look at where some of the next big innovations in gaming including what we're working on AR is gonna have more near term i..."