Fact
Gaming is both a hit business and a fad business — only two models work
Shaan's mental model for gaming: a game can flop or be a hit out of the gate (hit business), and even a hit can be a short-lived fad or a sticky League-of-Legends-style franchise (fad business). The only two viable studio models are landing a sticky non-fad hit, or churning out a stream of quick fad hits.
“Games struggle because games are both a hit business and a fad business, and people can confuse those two. And it's like the hit business, as in your game just out the gate could be a flop or a hit, but even if it's a hit, it could then be a fad hit, or it could be a long-lasting League of Legends type of hit, which is super sticky.”
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