Gaming disruption: Disney + Epic, Meta surge, Xbox pivot – Games Growth with Upptic

00:00:00:01 – 00:00:05:20
Warren
But Zuck is definitely showing that, like when push comes to shove, like he can be a ruthlessly efficient operator.

00:00:05:22 – 00:00:19:10
Xander
I think he’s also doing the inverse musk, which is if you don’t have anything to say, shut the fuck up, shut the fuck up, What’s anything? And then Eli’s out there. Just be like, okay, he’s. And I think that’s also helping him shoot the big bad guy of tech is, like, rotated.

00:00:19:12 – 00:00:29:01
Warren
The inverse musk.

00:00:29:03 – 00:00:31:12
Xander
Next week we’re going to Vegas, baby.

00:00:31:14 – 00:00:38:07
Warren
Well, I mean, you can tell I’m excited. There’s no beanie this week. I’m going be nervous like the sun is out. I’m ready to party.

00:00:38:07 – 00:00:53:10
Xander
Let’s go. So for anyone listening, who’s what they. What the heck we’re talking about? We’ll be in Vegas next week. We will be at DICE and will be hosting a panel of the bunch of ballers at MJ’s. And what we do in partner dinner, which is full. But if you want a heads up about the party dynasty, if you would anyway, feel free to do that.

00:00:53:12 – 00:00:56:19
Xander
That’s my shilling. The Omega is.

00:00:56:21 – 00:01:00:09
Warren
Awesome. What’s on deck for the show this week? Zander We got a lot to cover.

00:01:00:11 – 00:01:21:23
Xander
Interesting, big, big topics in the game’s related tech industry. We’ll be going over media earnings will be going over Xbox. What’s going on at Microsoft, our new favorite topic and as well as several large announcements at Disney. So without further ado, jump right in. This is going to be a irascible section. There’s a lot of numbers here. So we’ll be try and get through this in an intelligent and efficient manner.

00:01:22:01 – 00:01:44:05
Xander
Meta earnings were crazy. They grew substantially in 2023, the year that Mark Zuckerberg termed the year efficiency. And boy, do they deliver. We’re almost at 4 billion users across a four year move app just crazy. And you with 3.2 billion which is again insane revenue in Q4 was up 25% to $40 Billion no big deal. And the annual revenue was 135 billion.

00:01:44:11 – 00:02:03:01
Xander
Operating margin has increased 150% in Q4 from 6 billion to 16 billion and EPS went up 200 earnings per share, up 20%. So I mean, talk about efficiency, that’s about as efficient as you can get. One of the key questions we had going into this weren’t just like, so what caused be and here’s what caused the beat impressions when I guess how much impressions were up.

00:02:03:05 – 00:02:06:08
Xander
Any ballpark idea from all the ads you spend?

00:02:06:10 – 00:02:10:17
Warren
I mean, honestly, without knowing this, I would have actually predicted that they were down.

00:02:10:19 – 00:02:11:06
Xander
Really?

00:02:11:06 – 00:02:13:17
Warren
So, yeah. Before earnings. Yeah.

00:02:13:19 – 00:02:15:21
Xander
I spent too much time on reality. When we tell you. I mean.

00:02:15:23 – 00:02:19:16
Warren
If rumors are buying a lot of impressions, but I didn’t think anyone else was.

00:02:19:18 – 00:02:39:04
Xander
Yeah. 21% up year over year with cost per impression up 2%. So not only they delivered on how much you’re delivering, but also prices going up. They decrease headcount by 22% to 67,000 people and they implemented a share repurchase program, instituted a dividend for the first time, where they’re paying you $0.50 per share. man, there’s a lot there.

00:02:39:09 – 00:02:58:04
Xander
What a monster year. Basically, every metric across the board they’ve overdelivered on not only do they circumvent ADT, but they’re really put themselves in a position to dominate the next call it five, ten years of technology and games growth and everything that we really care about. One of the interesting metrics that they had is like obviously they’re ABC in the metaverse.

00:02:58:04 – 00:03:13:12
Xander
We didn’t hear much about the metaverse. They’re investing in AI, they’re way ahead in AI. One of the things that Mark Zuckerberg was bragging about is that they have 600,000 each 100 GP equivalents, which are basically the most high end graphics cards that are used for A.I. training. And they’re, you know, ready to rock and roll for the next decade.

00:03:13:12 – 00:03:14:19
Xander
What do you think? Born?

00:03:14:21 – 00:03:21:18
Warren
Yeah. I mean, what’s like the single biggest one day increase in market value in history?

00:03:21:20 – 00:03:23:07
Xander
Did they? It wasn’t that.

00:03:23:09 – 00:03:44:19
Warren
Yet the day after earnings basically as far as like an overall amount of value increase, which is just wild. I’m still trying to unpack the how here. I mean, one thing that I can say more anecdotally were bummed any time any of our colleagues that work in this ecosystem like lose their jobs. But historically, I think Facebook had a lot of bloat in middle management.

00:03:45:00 – 00:04:03:04
Warren
And I think for better or for worse, like in this belt tightening phase, for the first time, they were forced to look at where they had that bloat. Some of that I think efficiency is part of this story, but what I can’t really unpack is like, okay, I understand the numbers and like, where did the wins come from?

00:04:03:06 – 00:04:24:14
Warren
You know, maybe I’m too much in a bubble in the games, leaning heavily in mobile, free to play, and like seeing how that sector has suffered. That sector is buying less aggressively on meta specifically. So is it that it’s ad revenue just going into more distributed segment, you know, where it’s like maybe historically the bubble we’re in drove a bigger percentage of that.

00:04:24:14 – 00:04:36:01
Warren
I think as other industries mature, get more focused on buying to performance, less doing like TV ads and billboards, etc. Is that what we think is driving this? Where is this new revenue coming from?

00:04:36:03 – 00:04:53:23
Xander
A couple of things. One, obviously, cost savings, headcount cutting 22% of headcount is massive cost savings for each of us. I think kids need that. How much of that is what I’d say this is completely anecdotal evidence is I’m getting more game ads than ever and they’ve got me pegged right. So I’m seeing five game ad today on Facebook, Instagram.

00:04:54:03 – 00:05:09:22
Xander
So I didn’t dig into the details about, you know, specifically what the subcomponents of their advertising makes. I’m not sure how candid they are without on the earnings call, but I mean, number go down in terms of cutting headcount. One of the big initiatives he ran last year was basically saying, I’m going to flatten the organization, comment on management.

00:05:10:01 – 00:05:27:19
Xander
You basically have to be an individual contributor or an executive. And even if you’re a manager, you’re expected to deliver code if you’re a technical role. And so that’s I think a big piece of it is like decrease headcount, increased efficiency per employee. And then just raw like number. I mean, they’re doing the chief thing, which is we just push more ads into the product.

00:05:28:00 – 00:05:33:16
Xander
And as long as people consume the product, 22% growth, 21% growth. But yeah.

00:05:33:18 – 00:05:37:08
Warren
Did we have a metric on their user base? Yeah. And the change of that.

00:05:37:10 – 00:05:47:00
Xander
It’s all time high at 4 billion. I may you which is about one in every two people go across the family of apps right. It’s basically just you know half of people in the world use a Facebook product.

00:05:47:02 – 00:05:56:19
Warren
Which is great. So I guess that’s the real driving factor here. At the end of the day, from a revenue standpoint, it’s just them still continuing to increase their share of voice.

00:05:56:21 – 00:06:14:18
Xander
Share of users and then also just increased ads picture just to sort of like frame how big of a run up this is. If you recall, during the depths of last year when everyone was worried about tech stocks, they were $90 a share last time I checked, which was on this morning. But recently it was $450 a share.

00:06:14:20 – 00:06:20:14
Xander
I mean, that’s the most insane appreciation we’ve seen. Like I can remember in such a small timeframe.

00:06:20:16 – 00:06:32:06
Warren
Although I’m not an analyst. Yeah, I can painfully remember and visualize the day when it was like 90 bucks a share. And I remember telling myself like, this is probably the time where you should be investing in this. And I feel like you did and I didn’t at that time.

00:06:32:06 – 00:06:37:19
Xander
Zander I was running my house then, so I didn’t invest in anything and I should have anyway.

00:06:37:21 – 00:06:44:13
Warren
Yeah, but Zuck is definitely showing that, like when push comes to shove, like he can be a ruthlessly efficient operator.

00:06:44:15 – 00:06:52:07
Xander
I mean, he’s going to go down in history. I kind of always scoffed at him, but like talk about someone who just has been like winning over and over again. He’s like, he’s a monster.

00:06:52:09 – 00:07:11:08
Warren
Yeah. I think honestly, he’s been doing a lot to rehabilitate his public image, almost not even intentionally. I feel like there was a period where he was trying to outwardly improve his public image and just like failing miserably. And lately I feel like he’s just been being a badass in multiple ways, like ever since he got more hardcore about jiu jitsu and more efficient as an operator.

00:07:11:08 – 00:07:19:02
Warren
But I feel like he’s starting to win over public sentiment more and more, both within the markets but also just among average people.

00:07:19:04 – 00:07:35:04
Xander
I think he’s also doing the inverse I, which is if you don’t mean to say shut the fuck up, shut the fuck up anything, and then he lives out there, just be like, okay, you know, because I think that’s also helping him sit the big bad guy of tech is like rotated anyway, not talked about most getting whether we need to.

00:07:35:06 – 00:07:36:05
Warren
The inverse musk.

00:07:36:07 – 00:07:39:11
Xander
Today. Well talking about changing strategy.

00:07:39:12 – 00:08:08:10
Warren
Yeah up next we want to talk about this week’s big brewers in the gaming industry which is Xbox exclusives and maybe to even bigger rumor capacity Xbox potentially as a console coming to the end so there’s a lot of buzz about this. We’re recording this on Thursday, February 8th. So much like the rumor that we spread last week about Tencent buying D&D, which was debunked like 24 hours later.

00:08:08:12 – 00:08:29:00
Warren
We’ll see how time treats this rumor. So anyway, what’s going on? Microsoft obviously owns Xbox, has been signaling a move away from exclusivity for first party games. And there’s a lot of hints that their upcoming titles could appear on platforms like PlayStation Switch. The CFO, Tim Stewart, he’s publicly stated that they have intend to start bringing more games to other platforms.

00:08:29:05 – 00:08:48:07
Warren
And I know one particular game that there’s been a lot of specific rumors about is called hi fi rush. That was the game that I heard at the start of a lot of these rumors and such as Nadella has also hinted that this strategy would be more a moving forward. So let’s just start by some facts, what’s going on with current situation.

00:08:48:12 – 00:09:10:08
Warren
So it’s still very early and none of the major new releases like Starfield have been multiplatform. And we do expect that all of the really top tier first party IP is going to remain first platform for foreseeable future, but it seems like they might be testing the waters with some of these more niche titles, like hi fi rush and Phil Spencer did tweet in the last day or two.

00:09:10:10 – 00:09:29:02
Warren
That next week there’s going to be an official business update addressing some of these rumors and topics. So that’s kind of just the facts on the ground. Why might they be going down this road? So two things that feed into this, just doubling down on Game Pass as a platform itself. I see some people theorizing that regulatory concerns are part of this.

00:09:29:02 – 00:09:31:08
Warren
I think that’s not as important part of the story that.

00:09:31:08 – 00:09:32:08
Xander
Teams are on.

00:09:32:10 – 00:10:01:20
Warren
Yeah, but I think the other play is like they’re becoming more of a content company than a hardware company for gaming. So I mean, they acquired Bethesda, they acquired Activision King, Blizzard and when we think about console gaming, historically the consoles themselves have always been loss leaders. I wouldn’t be bummed As much as I love my Xbox, I wouldn’t be bummed if Microsoft completely bowed out of hardware because that’s not what makes Xbox a great experience right now.

00:10:01:20 – 00:10:12:12
Warren
And it’s also not what makes the company profit. The profits are coming from their software, so I think it’s a very natural move, especially to have been losing. I checked the numbers was last year PlayStation outsold Xbox about 2 to 1.

00:10:12:14 – 00:10:13:11
Xander
Crazy.

00:10:13:13 – 00:10:33:17
Warren
Yeah. So they’re losing the console wars. Meanwhile, they’re building their content empire and we know that content is what drives the profit. Every console basically for the history of time has been like take a loss on the console, make the money on selling the software, on selling the razorblades, not the RAZR. So that’s kind of my thoughts on why I think it is very likely.

00:10:33:17 – 00:10:50:21
Warren
I don’t think it’s going to happen any time soon. But what I expect for next week is they’re going to admit that they’re testing the waters for this, but kind of restate it. Rest assured, we’ll have some amazing first party exclusive experiences and they call out a few of the big IPAs. That won’t be, but that’s kind of what I predict for next week.

00:10:50:23 – 00:11:02:22
Warren
Zander, I’m sure you have a lot of thoughts here. Is it the right strategy for Microsoft to bow out potentially of the harder wars and or is it the right strategy for them to have less exclusivity in their titles?

00:11:03:00 – 00:11:16:12
Xander
Yeah, yeah. So I read an article yesterday. I have not done the fact checking on this, but it’s the Xbox has basically never made money on the hardware. That makes sense. But, you know, is this a giant loss leader for the company? And they’ve been trying to fight it for a long time, went through many iterations and they’re where they are now.

00:11:16:14 – 00:11:37:01
Xander
But this reminds me of is what they ended up doing with the PC. And so I do remember that, you know, one of their biggest drivers of revenue. And so today’s office and office suite, if you recall, way, way back in the day, the office suite was a microsoft exclusive. And one of the ways that they ended up increasing distribution is the fact that that is now on every computer in the world, more or less is the fact that they made it also on Mac.

00:11:37:04 – 00:11:51:18
Xander
And that’s basically been a way that they’ve been able to sell through their software into every possible place they could possibly be very high margin business. You know, one of the biggest business empires the world, pretty good strategy. It seems like they’ve been doing that here. I mean, one of the things that we’ve talked about, you know, they’re the kings of recurring revenue.

00:11:51:23 – 00:12:08:01
Xander
Basically. No one knows a better game passes recurring revenue. They’re loading up on game pass content. They have basically some of the biggest IP in the world now. And the game side seems like a pretty smart strategy. I mean, if you can get Game Pass and put it on your ps5, it’s like, okay, you play on your computer too.

00:12:08:03 – 00:12:16:12
Xander
Okay, this is pretty compelling. Can you play on whatever old expert expectancy you have? sweet. Play or switch on the go? It’s like, shit, I don’t have an Xbox, but maybe like a game pass, you know?

00:12:16:17 – 00:12:43:23
Warren
Right, Right. And the other piece of that is like, as those experiences get more accessible, you’re more willing to pay a higher price for this. I mean, already, if Game Pass increased the price by 20%, I probably wouldn’t an eye. Right. And if I can seamlessly start taking those experiences, you know depending on where the regulatory winds blow and Apple policy goes like if I can start taking those experiences more seamlessly to my iPhone, I can already do a lot of it on PC.

00:12:44:00 – 00:13:02:11
Warren
That’s going to increase the value without incremental development costs that are equivalent for Microsoft. So, I mean, at the end of the day, Microsoft is ultimately a software company. How do you increase the revenue of your software? You get a higher install base and this is a huge play for just doubling down on that and letting some pride.

00:13:02:11 – 00:13:10:09
Warren
And I think areas of ownership in the past, just letting those go for the name of like what’s ultimately going to let us grow the most as a software business in gaming.

00:13:10:14 – 00:13:20:17
Xander
We’re going to city State where it’s like, okay, there are still Xboxes, but in the same way there’s new iPhones, it’s like, okay, yeah, marginal improvements. And we do that until it does make sense that we kill the program.

00:13:20:18 – 00:13:43:09
Warren
I think we have 3 to 4 more years of Xbox. I could see like a refresh of this one. That’s more for like the Prosumer segment. If I did, I mean, this just like wild predictions, but I do predict that like within the next four years we’ll see the entry point to the what we call today the Xbox ecosystem become separate from the hardware for the average person.

00:13:43:11 – 00:14:03:20
Xander
What I just noticed, like I haven’t bought an Xbox in since pre 60, I think I noticed like there’s a series s that just got sunsetting the series X, it’s like, what is it, the same one? It’s like, okay, well I mean it seems that they’re already moving towards. It’s like there’s basically just an Xbox, right? It’s not that Xbox One or not the 360 in the same way that there is like sort of a console generation that’s like, okay, there’s an X pass machine.

00:14:04:00 – 00:14:21:18
Warren
Well, yeah, if you don’t follow it closely. I mean when they launched with the X and S and the current generation, the S has no physical drive. So, you know, that’s the lower price point, wider adoption console. So that’s already a step moving you further away from what it means to be a console that there’s no longer any like physical media associated with it.

00:14:21:21 – 00:14:40:20
Warren
It’s only one step from there to like the console itself exists in the ether, exists in the cloud. Right. And I think this all boils down to eventually the quote unquote console or platform for Microsoft in gaming. Xbox will be the piece of hardware. And I think Game pass will become the platform overall.

00:14:40:22 – 00:14:50:22
Xander
I mean, we talk about cross-platform. We talk about, you know, ubiquitous experiences. I mean, this just lines up there looking around the corner, make sense. Think about the strategy for an hour. It seems a good one.

00:14:51:00 – 00:14:59:11
Warren
All right. Next, we have a lot of Disney news, right? A lot of this. We have a couple of Disney stories this week. What’s going on with Disney this week, Sander?

00:14:59:16 – 00:15:20:21
Xander
Yeah, lots of Disney news this week. I snuck in the third story for you, right? So stay tuned. Just really briefly on earnings. I’m not a daisy earnings expert, but I do want Nielsen top line stuff. Revenue was basically flat for the entire business year over year for Q4 $23 Billion operating income was up from 3 billion in Q4 2022 to 3.8 billion in Q4.

00:15:20:21 – 00:15:41:23
Xander
23 performance very pretty drastically by business segment. And they placed the segments in all sorts of interesting ways. We’re going to go super deep, but a couple of things I’ll say is parks are hit all time high. 9 billion doesn’t really surprised me. Parks are expensive, linear TV is down. Okay, that makes sense. And then they’re moving towards profitability for the streaming segments and they expect to hit profitability at end of 2024.

00:15:41:23 – 00:16:06:05
Xander
And if you look at, they’re getting pretty close, I think, to operating losses in like the close to 100 million, maybe even in some places a figure Sega. Okay, you’re home. You’re home with profitable good jobs. So I actually saw them I just saw a couple of years ago actually last year some point really saying that they were losing their footing, but with everything that’s happening now and some of the other movies that we talk about this, again, it actually seems like I don’t know if the price is right, but I actually think Disney is pretty set up strategically for the next 5 to 10 years or five years.

00:16:06:07 – 00:16:28:01
Xander
We’ll see. So what else have they done? That’s interesting. Two things. First, they just announced a joint venture. ESPN, Fox and Warner Bros. Discovery are forming joint venture to watch a new streaming platform. It’s a third, a third, a third between the three companies. And they’ll have a new team, a new app and new management. So this just announced we don’t have a lot of details, but this seems like a really, really, really frickin good idea.

00:16:28:03 – 00:16:44:18
Xander
What’s holding the linear TV bundle together? It’s the only thing that anyone cares about that’s still on pause. I’m like background noise of people watching Fox News, but like the vast majority of it is sports. And so what do we do? It’s like, well, we can’t always ourself. We launch with basically biggest suite of sports that anyone has ever seen launches new app they’re going to do.

00:16:44:18 – 00:16:58:10
Xander
I’m pretty fucking sure it’ll be a percentage revenue based on that bundle of sports they control ESPN’s the biggest piece the same way they sucked the most cue bundle. The price took the most money. So this bundle seems pretty smart for Disney before I advertise on it. What do you think? One?

00:16:58:12 – 00:17:31:08
Warren
Yeah, there’s a lot to unpack here. I mean, I was listening to some data on another news program recently. We basically talked about like the only thing that it’s not even sports is just football specifically, which is the only sort of like mass consumption legacy television media that still consumed. So it makes sense that they’re making plays to double down on this to your point of just like the overall health of Disney as a business, I mean, they’re always in that bucket of too big to fail, which I think is even getting even more so with one of the other stories that we’re going to touch on today about a particular investment that they made

00:17:31:08 – 00:17:31:21
Warren
recently.

00:17:32:00 – 00:17:44:15
Xander
Yeah, Yeah. This is big news. I think this is really what got this on the docket for us this week. Dizzy is going to invest 1.5 billion in Epic games and I don’t usually to read snippets but I think there’s a pretty telling quote so I’ll try and read a snippet real quick. This is from Disney’s version of the press release.

00:17:44:15 – 00:18:11:17
Xander
There’s two press releases. The Disney Company and Epic Games will collaborate on an all new games and entertainment universe. Disney will invest 1.5 billion to acquire an equity stake in Epic games alongside this multi-year project. In addition to being a world class gaming experience and enter operating with Fortnite, the new persistent universe will offer multitudes of opportunities for consumers to play, watch shop and engage with content, characters and stories from Pixar, Disney, Marvel, Star Wars, Avatar and more.

00:18:11:18 – 00:18:29:23
Xander
This will all be powered by the Unreal Engine. Holy crap. I mean, that is super smart and intelligent strategic decision. This he’s got the IP epic I think is arguably positioned as the best pure play games company in the industry. Why is that proven? Operators ask scale. They control their own games, they control distribution, they have their own edge.

00:18:30:01 – 00:18:47:03
Xander
The literally wouldn’t be vertically integrated. What does Disney bring? Disney has the pocketbook bargaining prowess. They can push it out to everyone. I mean, this seems like an obvious the world’s best apps, the world’s best apps. I mean, this is really like this is a behemoth. Last thing I’ll say is this is the wild speculation zone. I just heard this.

00:18:47:03 – 00:19:06:11
Xander
Some were not very reputable. I think with Twitter or something. Disney presumably got 10% of Epic for 1.5 billion, which implies a 15 billion valuation for Epic. And when I bought my eBooks up recently, I got it for 13 billion. So thank you, Disney. You drove up the value of my stock on the secondary market so far.

00:19:06:13 – 00:19:25:18
Warren
Yeah, there’s a lot to talk about here. The first thing that comes to mind is, you know, obviously this deal has probably been in the works for a while and I can see you like the internal pitch decks where it said Metaverse in 2021 and the crossed out in the pre written is now like the new universe they’ll build together because we can’t sell you metaverse in good company in 2024.

00:19:25:20 – 00:19:43:18
Warren
But that’s really what they’re talking about. Arguably Fortnite is the most successful modern metaverse and that’s where Disney is talking about building out with them here. Right. Brilliant move. Correct me if I’m wrong, but I don’t think Disney owns outright best in class like God tier game developer.

00:19:43:20 – 00:19:51:11
Xander
And if not, they shut down the division twice. I think it’s completely outsourced now. Which yeah, I know this was the epitome of outsourcing to.

00:19:51:13 – 00:20:24:03
Warren
Yeah. And we all know the power of Disney’s IP is in gaming to drive gaming sales. You know there’s the first traditional Disney the Star Wars IP, the Marvel IP. But what sucks about building a game with those IPS is the business models are brutal to license them there has I wind tells you you lose licensing models where I’ve had the pleasure of working on both successful and failed games with Disney IP and like they’re getting paid either way right and the rights that you have to pay to use those fees are insane.

00:20:24:03 – 00:20:46:14
Warren
And the restrictions, the amount of control that Disney has over it. So my point being as the IP owner of these IP that were already driving massively successful games in spite of the giant haircut of that revenue needing to go to Disney now when they own one of the world’s best game developers and just game distribution platforms? Yeah, partially.

00:20:46:17 – 00:20:59:06
Warren
But I have a feeling that if we’re thinking ahead a year or two and that Epic is developing something with Disney IP, I bet they have a little more favorable terms for licensing Star Wars than a game company does today.

00:20:59:08 – 00:21:09:07
Xander
Well, also optionality around what happens epic next, which is I hadn’t thought of until right now. But it’s like it’s not crazy to imagine five years they buy them rate smart actually.

00:21:09:09 – 00:21:26:06
Warren
Yeah I mean when we think of Disney plus epic if they were to fully merge if there was full acquisition at some point you have the power here to have a gaming platform behemoth that is as meaningful as Apple’s overall power in the space right now, I would argue.

00:21:26:08 – 00:21:31:15
Xander
It’s fascinating I think, to a really smart, boring I don’t know if you read the press release, but you do know that we are mentioned in it.

00:21:31:17 – 00:21:33:06
Warren
Tell me more.

00:21:33:07 – 00:21:39:06
Xander
Deep deep in the first of these it says Disney mobile games have 1.5 billion global installs.

00:21:39:08 – 00:21:41:22
Warren
They will do some of those.

00:21:42:00 – 00:21:45:21
Xander
Just for the audience. We worked on a Disney launch. Was it two years ago?

00:21:45:23 – 00:21:55:09
Warren
Yeah, we’ve got a couple of Disney IP games that we do or have done work for. I’m not sure entirely which ones we’re not allowed to talk about publicly, so will be not super specific right now.

00:21:55:11 – 00:22:20:08
Xander
Yeah, I mean, I think overall strategically probably a good decision. Do I buy back into my Disney position Earth? I don’t know. It seems a little expensive, but strategically I think it makes they’re just like they’re actually I was really concerned I would have sold their position. So that is garbage. But then between cost cutting, real life entertainment increasing, they seemed to have a plan for managing the decline of linear television, specifically with the sports component, which is the most profitable component, Hulu and Disney Plus.

00:22:20:08 – 00:22:33:05
Xander
While I think are stagnate, if I recall. Exactly. They will grow over time. They’re raising prices to keep you only about how they’re going to lock out people from using my account. If they not in my household and stuff like that, they’ll make money there and then fill the missing with games business. And I look at everything as this town.

00:22:33:05 – 00:22:37:15
Xander
So I mean, there’s sleuths. I mean, they’re in a really, really, really soft position.

00:22:37:17 – 00:23:00:01
Warren
All right. I think that’s the show this week, right. That’s ever happened in the world. All right. Thanks for checking out the show, everyone. As always, The podcast was brought to you here by our team at Upptic up to what do we do? We grow games. We boil it all down to two words games growth. So we build software that streamlines, automates and adds efficiencies to every part of the growth marketing puzzle.

00:23:00:07 – 00:23:22:03
Warren
And then we have the workforce. We have a really rad group of people that develop the creative run the marketing channels and really efficient ways as really trained operators and then provide the data science and models needed to have the edge on your competition. So if you are building a game and trying to figure out the best way to get a massive amount of users into your game in a profitable, sustainable way, where are your folks?

00:23:22:03 – 00:23:32:18
Warren
For that, you can reach us on our website. That’s U-P-P-T-I-C.com. If you enjoy the podcast, please like and subscribe. It means a lot to us and we’ll see you next week.

00:23:32:20 – 00:23:33:20
Xander
Or in Vegas soon.