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256. FaZe IPO, 85 Thieves, Dr Disrespect Hiatus, Nintendo Animation, Guild Wellness, Tesla Steam, D-BOX Gaming Patent
Episode 25623rd July 2022 • Business of Esports • Paul Dawalibi
00:00:00 01:11:55

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In the latest weekly news and podcast after-show (sponsored by YouGov), we discuss FaZe Clan going public on the Nasdaq, 100 Thieves laying off members of its social media and content teams, Guild Esports hiring Kit Brunswick as its safeguarding and well-being lead, Dr Disrespect considering a two-year hiatus from streaming to focus on his game studio, Nintendo buying an animation studio, Elon Musk saying Steam will be available in Teslas soon, D-BOX filing a patent for a motion simulation gaming chair, and so much more!

Transcripts

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From the keyboard to the boardroom, this is the

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business of esports.

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The worlds of gaming and esports are evolving every day faster

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than ever before. With YouTube's living data, you can probe into

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all around the world, driving compelling results every single

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day, check out youtube.com/bo E and schedule a call with YouGov

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today, from the keyboard to the boardroom. This is the business

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of esports business and esports weekly news show slash post

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podcast live stream kidsave can't speak. I am ball the

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Prophet Dawalibi I'm joined today by my friends and CO hosts

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the Honorable Judge Jimmy brata. Lindsey the boss us Jeff the

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juice Cohen for those of you who are new here welcome to the

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official podcast slash weekly news show v sports what we do is

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we cover the most pressing gaming and esports topics news

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of the week when we look at all that throw business and C suite

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lens you dissect we analyze the business implications of

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everything happening in this industry and best of all with

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this live stream. We get to do it live with you guys. You get

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to ask us questions get in our faces challenge us. It makes it

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so much more fun we encourage it it's a safe space. We know so

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many of you lurk that's okay too. But hopefully you're taking

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time whether it's out of your workday or your morning or

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whenever your whatever time zone you're in. We we really

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appreciate when people come and and participate that makes it so

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much more fun for everybody. Lindsey everybody how you guys

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doing this week? It's been a crazy crazy week. I am looking

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forward to the weekend for sure.

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Crazy

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just been so like just really busy all of a sudden just sort

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of exploded on me. So lots of stuff to do. Good though.

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We were Jimmy and I were talking about it on the podcast. Usually

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the summer is like slow downtime and it feels like nothing has

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slowed down at all.

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Like at all

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maybe that's more a statement about the gaming industry as a

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whole or I don't know if there's any conclusion to draw from that

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but literally everyone I've talked to including President

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company here everyone's just saying like this is the most

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busy they've been the whole year

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that is that is true. busy busy busy. Is the first live show I'm

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doing from the new house to I moved to house so I'm still

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getting my background all set up up with some cool pictures of

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bulldogs and stuff up

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gamer stuff, you know, like like Mike's framed portrait of ninja

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or something like something

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across jersey and all American records

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he says I've made it Bobby. I mean, this is this is the top

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life just doesn't get any better than this. You have made it.

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Well.

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Man says most important part of the week I agree. Project says

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How's everyone's week or dance? I think everyone's just super

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busy. But I'll speak for everyone. And so I think we're

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all doing good. John Paul Howard Kaplan says hello from Chile.

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John Paul. Hello, welcome.

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Great to see new names, new geographies in here. Matt says a

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framed portrait of Paul's face yet somehow. I don't know if

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that would fly in Jeff's house. But you know, it's a thought

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it's a thought. I think more people shouldn't have that. I

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agree.

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Guys, I just before we jump into some news, I want to tease the

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podcast this week we had

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we had a meal. And I'm gonna mispronounce his name, Emil Ven.

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yakka. But it's spelled with a J not a y event like

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Ben yakka Emile van Yakko from he's the co founder of ABL

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esports. And he's also on the board of the Quebec esports

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Federation.

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And so they've got this like, really cool local approach so

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far to esports in terms of what they're doing in Quebec. I think

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the other interesting part is is a reformed lawyer with a full

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like nine to five day job. And so he built like this esports.

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org, on the side, which we talked about, and I think there

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was some interesting insight there in terms of how to do

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that, and how to manage all those things at the same time,

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because I think a lot of people aspire to do that, right, like

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build something on the side while they're working their nine

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to five. So highly recommend everyone tune into that episode

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was a lot of fun, great insights.

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great guests. So that's that's a drop on Friday and Melvin yakka

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from Abel esports.

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Guys we have to you know, maybe no surprise what story we have

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to start with this week even though I think it's probably

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like the maybe the least interesting story.

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I just think like my hands are tied I have to start with this

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and

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that is FaZe Clan. In the news. I think everyone has been

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following this and talking about this FaZe Clan, finally public

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Oh, after all the you know, starts and stops and the news

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that leaked and the letter and like all these things that we

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covered

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FaZe Clan is now public and the headline here from CNBC FaZe

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Clan goes public in $725 million SPAC a market bet on Gen Z and

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the creator economy. So it says the key points in this article,

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face cleanse and online media company, I was like how maybe

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like other media outlets describe FaZe Clan. So now it's

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an online media company made up of 93 members consisting

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primarily of esports competitors, and content

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creators, plus a handful of celebrities like Snoop Dogg, who

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also serve on the company's board. FaZe Clan started in 2010

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game with gamers posting videos on YouTube ranked the fourth

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most valuable esports company by Forbes.

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And you know, they mentioned the starts and stops with this back.

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Now. I don't know what the shares the cool part about doing

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the podcast at this time. We have sort of real stocks trading

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in real time at the moment. I don't know if some one of you

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can actually. So it's down like 27% and have been down 30%. A

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little while ago, I actually bought some some $10 puts a

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couple couple of weeks ago. So doing pretty well. Currently,

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they don't expire till August. But yeah, I mean, congrats them

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for getting public. I know we had there were some fits and

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starts we definitely at times, it looks potentially bleak. The

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interesting thing to see will be how much redemptions they got.

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So there's a bit of a confusing mechanic with Spax, where

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there's a vote and people who bought the SPAC prior to the

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vote can actually redeem their stock their shares for $10. Or

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they can get the stock of the of the company. And so often what

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happens, this actually happened with Allied esports back, you

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know, two years ago, when they did this back, they had thought

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that they were going to kind of it's called the SPAC they

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thought they were going to have $300 million on their balance

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sheet, which was then going to enable them to go and build a

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whole bunch of arenas and kind of go through their their whole

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business plan. And I think they ended up with like 40 or $50

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million in cash because they got all their options. So one thing

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that I noted there was actually announced, I think, two or three

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days ago, was that a lot of times these facts will have a

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minimum redemption amount. So basically, they'll say like, the

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destaque won't happen if there's too many redemptions. And

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companies will want that option, because you don't want to go

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public and then immediately have to have no money. Because all

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the people who thought were investing, redeemed, you'd

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immediately have to raise more money, and it would lead to more

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dilution, they actually waive that. So there was no minimum

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requirement for cash after the back. So I'm going to be

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interested to see when they file to see how much cash they have

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on the balance sheet.

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You know, they're probably long story short, I think they're

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gonna probably have to raise money because they're burning

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cash. And I'm guessing based on the fact that we've that, that,

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you know, requirements, they probably had a lot of

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redemptions. So I'm betting I'm betting that this one keeps

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going down, but congratulations to them for going public.

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Obviously, it's a massive accomplishment, and a really

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important moment for the esports.

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Jeff, I just want to ask you a question to make sure I

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understand and our viewers slash listeners understand.

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Does that imply that if the stock sits below $10 right now

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and call it for the next few days or weeks? Does that

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increase the chance of greater redemptions? Is there some

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cutoff point? So that redemption period already happened? Yeah,

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so basically, that yeah, you would have redeemed that's why

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that's why until there's the vote, usually these things are

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pretty stuck to $10. You can see them go up above. That means

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there just won't be redemptions. But there's funds that do like I

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guess it's some sort of arbitrary forget the name. It's

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arbitrage like you'll never really see these things trade

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before they, they actually close the deal too much below $10.

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Because you always have the ability to buy it and then

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basically say, Hey, I don't want shares and Phase I want my $10

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so if you bought it for eight, you get 10 you immediately get

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that two hours so rarely do they trade

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If you will get the stock chart, pull it up, it was basically at

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$10 for like the last five or six months,

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seven months even. So I think that period ended whenever the

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vote was like two days. So now, the free floating.

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And what is the current market cap? As of right now? QUESTION

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I'm actually not sure.

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Because it's if it's the if it was 725, and they you know,

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they're down. About a third, right? 20 25% 27%, something

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like that. Yeah. Yeah. Don't

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mention that that 500 million mark would probably be

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where this shakes out at the end of the day.

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You know, whoever bought I mean,

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I guess, was it priced? Right, in your mind? At the end of the

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day? I don't I don't think so. But I guess it depends on whose

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perspective. I mean, I don't know the mechanics of the SPAC

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well enough to understand like, who the fact that it's going

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down? Who's losing value? Like is that? Is that mean that the

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people who own phase previously are losing value? Or is it the

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people that invested in this back then or losing more value?

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Well, obviously, it's not either, but

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I want to I want to, Madam man, I'm going to get to your

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questions. But I want to put projects question on here with

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which is so then going down at launch is expected that correct?

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I mean, is that the implication of that $10? Redemption?

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I mean, I don't think

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we've seen you know, it depends. It's a little bit of a sign of

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where we are in the market, but then also, like, I think it's a

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sign that they maybe priced the deal too high. And obviously

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it's the first day so you know, I think in two weeks or a month,

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we'll have a little better sense of like, Okay, are there

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actually buyers like where's the market ShakeOut? Personally, I

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think it'll be lower. But that, obviously, that's not investment

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advice. But that's what it's really reflection on. But it

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doesn't necessarily mean it's not like they, quote unquote,

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expected it to go down. Because you see, facts historically go

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up, right, like DraftKings was back. You went from $10 to, you

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know, as high as like, 70. It's obviously backed. I think it's a

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15. Now, but like, it's not like a given that it's going to go

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down. I think it just means they did price it right. Yeah. So let

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me let me Matt asked me, Are you going to invest? Paul, let me

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come back to that, Matt. And let's ask the second question

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here. Is anyone else going to invest? If so how many shares

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will you buy? Before I answer this, or anyone else say it's

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just to be clear, none of this is investment advice. You should

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do your own due diligence, you should make your own decisions.

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None of this is financial advice. But Jimmy Lindsey, for

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you guys.

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What's your take on this? And is this a stock you would buy?

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Personally? Is it something you're excited about? You know,

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we've talked at length about phase and some of the potential

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skeletons in the closet, now that they made it public? You

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know, would you recommend this to a friend, you know, would you

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would you tell your grandmother that this is a bet on the

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future?

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To Lindsey, since you're pausing and still muted, I'm going to

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jump in two very different questions with very different

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answers for me here, right? First off phase going public.

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And what I tell my friends about this, absolutely, I'm going to

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share it because it's not everyday that we have an

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esports. Org or a company in our industry that goes public. And

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at the end of the day, as much as you might disagree with one

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move that they make, or one announcement or the other. You

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still had a company that was able to announce a billion

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dollar SPAC listing that had some trouble, but still managed

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to get it across the table and to get it listed. And while

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they're having a rough first day. Again, they did it at a

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very high valuation. And whether it's 725, or 500, those are

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still great numbers to associate their brand with. I agree with

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Jeff, I think it's closer to 500, maybe even closer to four

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honestly. But at the end of the day, it's something I would

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share with friends of mine that I know are interested in

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investing or working in this space because it's a success

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story nonetheless.

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And you know, big gotta do a shameless plug here. And big

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kudos, shout out to will Eddins to Quinton sparks, Greg SELCO in

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the guys on the exit team that were a big part of this phase

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driving force for years. And you know, obviously left to do it a

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little different with what we're doing at exit but I know they're

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proud of this. And that's a cool thing I think in the industry is

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that you can root for your competitors. And for you know

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that rising tide raises all ships. The second question on

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whether or not I would invest personally I'd probably say no,

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but that's just my general again to mimic Paul's, you know,

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disclaimer about not investment advice. I just am not really hot

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on the market right now in general and I'm probably going

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to wait another six months or so before I reevaluate where things

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are and well, also buying a house. There's a lot of physical

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things on why would it be

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I have FaZe Clan. But I just don't think that I still don't

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think it's worth 500, I think it's probably worth closer to

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four. I'm also a little hesitant because this is

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the phase brand has a lot of skeletons in the closet, they

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have a lot of negative things in their past that have come to

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light. And when you're tied so closely to these creators and

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people that are continuing to make bad decisions, I don't know

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how that would affect the company or the stock. So I'm

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probably going to wait to see if this stabilizes if they

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implement any changes now that they're a public facing company.

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If you're willing to take that risk, though, $10 is not a bad a

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bad bet, though. So that's probably where I'll leave it to

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you. And,

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Lindsay, I'm curious to get your take. But I would love for you

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to add, if you can your thoughts on how CNBC described phase like

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for those who don't know, Lindsay had a very successful

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career in communications before she did anything in gaming and

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esports. So I'm curious, like, the, the, the the way they

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phrased it in that first sentence? What'd you think of

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that? Yeah. Can you pull that back up? Yeah, sorry. No, I only

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vaguely remember it. Online Media is made up of 93 members

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consisting primarily of esports competitors, and content

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creators, I thought was interesting. Well, and even the

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headline stands out as the creator economy and Gen Z. And,

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yeah, I definitely think that they're going for a certain

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angle here and telling a certain story that's much more

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attractive to potential investors. I don't know that

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we've worked out a very good market model for what we can

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call the Creator economy, because it still doesn't make

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the money that I think people think it should make based on

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the users that followed the Creator economy. So I think this

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is a very, very optimistic way of putting what FaZe Clan does,

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I remember when we previously talked about it, we thought that

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they would maybe drop in multiples a little bit more than

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the 725, we talked about how they had 100 million in revenue,

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so three to four times multiple would be three to 400 million,

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maybe 500. Just because this is a more forward thinking company,

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quote, unquote. But the 725 price tag does surprise me a

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bit. That said, I'm still kind of with Jimmy that if you have a

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small amount of money that you're willing to put into a

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risky kind of situation, this could be one that pays off,

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quite greatly. I don't know that I would go around touting that

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or, or advertising that to people. But I can see that there

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hasn't been a model for this, again, quote unquote, greater

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economy, Gen Z thing, it could be phase, I'm not saying it on

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it. I don't necessarily feel like it's phase, but that's just

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based on my own impressions of phase and how I interact with

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them, not necessarily based on how the market might react to

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them. So definitely, with with Jimmy and that note, personal

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investment for me at this time, for sure. Not that I have the

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funds to do that. Anyway. Um, and when it comes to maybe

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talking to other friends who are kind of interested in the space,

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I would say, hey, like put in an amount that you're willing to

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lose just to see what happens. But don't don't bet your

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retirement on this one.

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Yeah.

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I was gonna say, the fact that the way they're describing

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themselves really says a lot about the way that they think

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investors think about. Yeah, right. Because like, I guarantee

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you if this stack can happen two years ago, or even 18 months

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ago, you know, they would have said in esports, company, FaZe

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Clan, or like a gaming company, FaZe Clan, now, it's a bet on

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Gen Z and crater calm. I mean, that could literally be a social

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media company that can be, you know, a scooter company, like,

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you know, that it really is not even that descriptive, then they

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call themselves an online digital media. Like, you know,

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that could it's very broad. And I think that's, that's super,

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obviously super intentional by them. And I'm just curious to

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hear your thoughts on what that means for esports space. Well,

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we've obviously had a number of esports company last for three

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years that have been public that have had not great results, you

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know, present, present company included company, of course. So

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I do think there is some some aspect of like, public market

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investors have soured a little bit on the esports theme, which

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I think is pretty poignant in just the way that this is the

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I guess I was with you up until that last point. I'm not

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convinced that public market investors have soured. I just

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think it's a it's a bigger hill to climb, to convince people

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because I think it's always been a big hill to climb, that

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esports is a legitimate thing that even Gaming's the

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legitimate thing, right? You're talking about a group of people

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when we're talking about real like traditional public market

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kind of investors. And I don't mean mom and pop like retail, I

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mean, like big institutional. It's a big hill to climb to come

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Instead of anything new, right, anything even remotely new.

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And so, you know, I was with you up until that last point, Jeff

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where I think this is not so much about souring on esports

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this is more about smart twisting of words, to make it

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more palatable to the big institutions. And online media

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company is just so much easier to understand now, I kind of

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love that twisting of words, because

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guess what, we are also an online media company, right? So

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this is great in terms of just

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bringing awareness to these kinds of opportunities. But, you

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know, I could replace FaZe Clan here with with business of

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esports or holodeck or and everything would still be true,

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right? Like basically, other than the numbers. And, and so

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like, I, I think this is very positive. Now, let me answer

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Matt's question, Would I buy the stock? Personally, I wouldn't.

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And I just because I'd rather invest in my own online media

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company. But

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I see how some people could could and would put this in

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their portfolio as sort of a bet on Gen Z, because that's the

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reality that is phases audience, right phase is going after that

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Gen Z gamer more aggressively than maybe any other

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organization on the planet, right.

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You know, Jimmy mentioned accent by the way, congrats to accent

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because they were also in the news this week on their $15

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million raise. But like, even other cool esports swords, I

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think aren't as laser focused as phase on that like, real, you

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know, Gen Z YouTuber or YouTube aficionado kind of audience. So,

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you know, I'm, I'm, personally wouldn't invest, but I could see

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how people would put this in their portfolio. I just, I

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always worry with phase about the skeletons in the closet.

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Right? That to me is always the the big question mark. And

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that's not priced into the deal. But

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whether we, you know, it's just not priced in? I don't think

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anyone can price that in because no one really knows.

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Adam here says, I mean, they're like, $1, higher than Under

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Armour right now, as far as funny companies.

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I don't think those are the cops that have a face used. But that

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is a good point.

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Chris says, I've been refreshing my CNBC page for three hours

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now, and nearly forgot to visit the business of esports. Happy

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face day. Chris, I'm glad you remembered it wouldn't be a live

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show without you. We need you in here because I'm curious,

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curious to get your thoughts. And I would love to know who in

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our chat has either bought the stock or plans on buying it? Or

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maybe you shorted the stock? Like, I'm curious what what

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everyone has done with FES people who are listening or

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watching this? I'd love to know, I'm curious. Just even if it's a

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small sample size, maybe we can extrapolate, like how many of

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you bought the stock or shorted the stock or, you know, did

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something with the stock in some way today?

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All right, guys, let me while we're, while we're waiting for

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that, I'm going to I want to do two other stories here that are

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very much

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in the same vein, because I want to put I want to put these sort

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of three stories together. There were three stories this week,

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including phase that are really esports. Org focused. And And

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this next one is 100, thieves. 100. Thieves was also in the

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news, but very different kinds of story. And this one was 100,

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thieves lay off more than a dozen staff on social media and

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their content teams. Now, before I get into the, you know what

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some of the article talked about. It's incredible that in

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the same week, right? FaZe going public, describing themselves as

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an online media company employing mostly content

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creators. In the same week, 100 Thieves lays off content

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creators.

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And so

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you know, it says they laid off multiple long standing employees

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across their social media and content teams. It's a major

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shake up

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more than a dozen people including senior people, I won't

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name names it's very you know, obviously it's unfortunate for

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them. We layoffs are never fun, always this, you know, always

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want to make sure that that's clear. We're not we don't think

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this is good news, obviously.

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And we hope these people land on their feet. But I would love for

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you guys to get your thoughts on this contrast right where you

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have phased really pushing the language in this direction and

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then 100 Thieves seemingly

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He's backing off from it.

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Well, I'm curious what you guys make of it. Jimmy,

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this is a sad story, obviously, you know, I've loved the 100

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Thieves brand, I've always thought that they had an

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interesting approach to on the merchandising side of things,

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you know, we criticize how it works a lot here. And I thought,

Unknown:

at the very least, that a lot of what they did with merch with

Unknown:

exclusive drops with seasonal drops, with, you know, luxury

Unknown:

collabs, you know, it definitely spoke to my interests doesn't

Unknown:

hurt that I'm a huge Drake fan, and he's one of their series A

Unknown:

investors with Scooter Braun. But um,

Unknown:

yeah, you know, kind of casts a shadow on the otherwise great

Unknown:

news with with the face back and with the the exit Series A, and

Unknown:

you got to wonder, you know, after they had just raised such

Unknown:

a significant Series C round not more than two, three months ago,

Unknown:

what are they doing that they need to, I think, take a step

Unknown:

back, or refocus or change what that approach is. So I'm not

Unknown:

sure you know, honestly, what the thinking is going on there.

Unknown:

Maybe they're just trying to get a little leaner, because they

Unknown:

realize that they can't just keep raising and keep spending

Unknown:

that they're going to have to, you know, have to fix that

Unknown:

model. And they're doing it now.

Unknown:

But But obviously, it's not without cost and kind of a sad

Unknown:

story for even some really tenured employees that they've

Unknown:

had over there. I noticed, you know, this isn't just the 2.5%

Unknown:

across the top that we covered last week with Niantic and unity

Unknown:

and Coursera and a few others. This is this seems more

Unknown:

strategic, right, that they're looking at their business model.

Unknown:

They're looking at what works, what doesn't, looking at what

Unknown:

they need to do to get to their own SPAC public listing or exit

Unknown:

of some sort and saying, so I, you know, there are difficult

Unknown:

things to do. And I would defer to you and Jeff, in particular

Unknown:

on on the strategy behind that. But this doesn't, this doesn't

Unknown:

seem like they're having difficulties with the market or

Unknown:

difficulties with just, you know, the current state of

Unknown:

things. This seems really intentional. So I'm curious,

Unknown:

Jeff, if you want to take over I think it's, I mean, I think it's

Unknown:

a good, the last piece is interesting on the intentional I

Unknown:

was because I was gonna kind of just relate it to the broader

Unknown:

market. I mean, it seems a bit of like a sign of the times, a

Unknown:

lot of these businesses not even just an esports. I mean, we've

Unknown:

seen it across a lot of tech and startups raised a good amount of

Unknown:

money, call it six months, eight months ago, and had business

Unknown:

plans that were very ambitious and included them burning a lot

Unknown:

of capital and getting to their next round, probably, you're

Unknown:

later. And now you're halfway through that business plan. And

Unknown:

your investors are saying, hey, well, look, the interest isn't

Unknown:

necessarily there for your next round, or the valuations are

Unknown:

going to lower, you need to cut your burn rate. So, you know,

Unknown:

we've seen even very strong companies like I described, you

Unknown:

know, the ones you mentioned, Niantic unity, like these are

Unknown:

much, much stronger, better positioned companies, you know,

Unknown:

then then 100 Thieves having to do big layoffs. So I think it is

Unknown:

a little bit just emblematic of where we are in the economic

Unknown:

cycle, and maybe maybe just the investing cycle. But I'll let

Unknown:

the other you know, Lindsey, maybe if you want to chime in on

Unknown:

Paul's specific question around like, the content creators with

Unknown:

the dichotomy versus phase. I don't necessarily know if I have

Unknown:

great insights into that. That specific piece.

Unknown:

Yeah, I'm also as Paul frozen for anyone else. Okay, there we

Unknown:

go. I was just giving.

Unknown:

Gary, some deep thought happening there. Yeah, I mean,

Unknown:

I'm kind of, I feel like there's multiple stories to tell about

Unknown:

what's going on here, especially as it relates to Phase One of

Unknown:

the stories is obviously like, oh, 100 Thieves isn't doing as

Unknown:

well. I think it's really easy to look and make that

Unknown:

conclusion, and they have to layoff people. I think that it I

Unknown:

think it speaks more to what Jimmy was saying it's a

Unknown:

difference in mentality. And I think that phase is definitely a

Unknown:

Silicon Valley grow at all costs, more kind of energy type

Unknown:

of company, whereas 100 I definitely read this as 100

Unknown:

Thieves looking at its revenue model and actually figuring out

Unknown:

where to trim to become more profitable. Even though that's

Unknown:

obviously a super unfortunate consequence for the people who

Unknown:

lost their jobs. But the reality is, not every company makes

Unknown:

enough money to keep everyone hired. So it does happen. Um,

Unknown:

when it comes to the Content Creation versus I mean, I guess

Unknown:

more traditional competition and esports side, I mean, I feel

Unknown:

like I say this every week, but the model isn't there yet for

Unknown:

anyone. So I don't necessarily whatever phase is selling I'm

Unknown:

not sure if I'm buying it but I could say the same thing for

Unknown:

Hunter thieves even if I feel like they're making moves that

Unknown:

put them in a leaner more profit driven direction on So, um, I

Unknown:

guess, I don't know, I'm wondering if they even want to

Unknown:

go public or if they're just concerned with with making sure

Unknown:

that their revenue projections are hit

Unknown:

This year and thus the reason for the layoffs. It's I think

Unknown:

it's a mistake to put these two next to each other because I

Unknown:

think it shows like totally different strategies. So

Unknown:

comparing them or saying that one is better than the other. I

Unknown:

think it's just a little bit too early for that. I do think it's

Unknown:

interesting that they're both kind of based more on content

Unknown:

creation, although like I said, I feel like vases more lifestyle

Unknown:

content, 100. Thieves is more gaming content, they both do

Unknown:

some of the other of course,

Unknown:

I think it's interesting that they're both based on that,

Unknown:

though, they're kind of taking different overall, like company

Unknown:

strategy. So I guess we'll see what works. So is this sorry,

Unknown:

Paul, if I could ask the question, is this? Is this a

Unknown:

shift that you're seeing now? Or would you have always described

Unknown:

100 Thieves in that manner? Because I, personally, at least

Unknown:

never viewed 100 Thieves is like this pragmatic, like fiscal

Unknown:

company that was like, a king, you know?

Unknown:

Like three months ago, we're gonna just go to a video game,

Unknown:

like, how cool would that be? If we just decided to build a video

Unknown:

game, they built like a multimillion dollar compound,

Unknown:

you know, it's like, that's probably

Unknown:

more it's like a sign of the times a sign of the general

Unknown:

downturn.

Unknown:

That kind of thing. I don't think that this is their long

Unknown:

term strategy. I'm talking about like this.

Unknown:

And taking into account the broader economic direction that

Unknown:

we're all going in, like, that's, that's very much a, this

Unknown:

is what's happening right now thing.

Unknown:

But that you guys are kind of proving my point that I've made

Unknown:

for a long time now is that 100 Thieves management is sort of

Unknown:

out of their depth, right? Like they're, it's the business has

Unknown:

grown beyond their capabilities. And now, and the like, the one

Unknown:

signal I always point to, when I see that is like, when you're

Unknown:

just reacting, right when there's not there's no like,

Unknown:

clear vision plan. methodical, right. Like when you react, the

Unknown:

economy's down fire. Right, like and, and I just, the second

Unknown:

point I wanted to make was,

Unknown:

as does anyone really think 100 Thieves ever did very good at

Unknown:

content creation like, phase, you could make that point,

Unknown:

right? They were very big on YouTube. Before, you know,

Unknown:

anyone was really talking about phase even Right? Like in the

Unknown:

mainstream

Unknown:

100 Thieves Like

Unknown:

other than their cash app, compound facility tour, which by

Unknown:

the way, is like the only video that and the courage, like

Unknown:

joining 100 Thieves announcement video. Those are the only two

Unknown:

videos mentioned in this article. If your own if your

Unknown:

greatest content pieces are your facility tour, and someone

Unknown:

joining the org, are you really a content business, right? Like

Unknown:

is content really your expertise? Maybe it's a bit of

Unknown:

self awareness that they're just not that good at content?

Unknown:

Is what it could be right.

Unknown:

Let me let me get caught up on some of these content comments.

Unknown:

James says I'm personally holding out on face that's

Unknown:

interesting, Jim, so not buying the stock. You would think

Unknown:

people who watch our podcasts would be the prime candidates to

Unknown:

be buying fazes stock. But Matt says should this be a reason to

Unknown:

worry about the industry 100 Thieves has always seemed like a

Unknown:

leader if they're struggling, you have to imagine others are

Unknown:

struggling to.

Unknown:

I want to point that meds great question I want to point you to

Unknown:

this article I mentioned along the podcast. Alex Lee wrote it

Unknown:

our good friend and Digiday

Unknown:

I'm quoted in the article I highly recommend everyone go

Unknown:

check it out how recession proof is the esports industry. It's

Unknown:

about a week old now. But a great piece that Alex put

Unknown:

together at Digiday.

Unknown:

James says personally, I don't see this as a sign of 100

Unknown:

Thieves struggling I think they may be over groove and are

Unknown:

having to trim things back to find balance. Yeah, I mean, I

Unknown:

think it probably went like this right? They had a an investor

Unknown:

call or something some kind of update call. The investors are

Unknown:

going Hey, guys, we're a little worried about the economy. Like,

Unknown:

you know, maybe the next check won't come so fast and furious.

Unknown:

And so it's like React.

Unknown:

But I would have loved to have been the fly on the wall in that

Unknown:

room. Project says I think you could also look at it as maybe

Unknown:

100 Thieves are pulling out of a certain content space game

Unknown:

because it's not as profitable. I don't see them struggling now

Unknown:

or in the future.

Unknown:

I mean, I don't know if I agree content slash content can be

Unknown:

very, very profitable.

Unknown:

It's just I don't know if 100 thieves that good at JM says I

Unknown:

second that which I think JM you were referring to projects is

Unknown:

common here. But also, maybe the fact that 100 Thieves is not

Unknown:

that good at content.

Unknown:

I don't know. Do you guys think that it's the this is a more

Unknown:

surgical, right the fact that they only they only cut in

Unknown:

social media content it's maybe there's some maybe some

Unknown:

realization that this is not their focus.

Unknown:

Maybe I mean, I think I agree with the last piece I don't

Unknown:

see them as I don't see that this is like the end of the day,

Unknown:

they're still not very top. We're like so you know, we're

Unknown:

not trying to call them there, there were nothing more that

Unknown:

they're gonna disappear. It's just a sign of the time.

Unknown:

I don't know to call to your to answer your last question more

Unknown:

specifically, I don't know whether this is a, hey, we're

Unknown:

just recognizing we're not that good at content. So we're

Unknown:

pulling back a little bit on it. I hope that's not the case.

Unknown:

Because that would probably that would be much more bearish than

Unknown:

what I just said. Yeah.

Unknown:

Have oh my god, I don't I'm gonna mispronounce this. Have

Unknown:

fun milk have smoke?

Unknown:

says sorry, if I totally mispronounce that. If Mr.

Unknown:

esports team has to transform into agencies, content,

Unknown:

factories, etc. Maybe the market is also simply saturated.

Unknown:

Everybody doesn't. I think that's a good point. Right? Like

Unknown:

they're there for a long time was a very clear lack of

Unknown:

differentiation, right? Like, was TSM really that different

Unknown:

than 100 Thieves are really that different from you know,

Unknown:

esports. Org XYZ. I think there has been a struggle for a long

Unknown:

time to just be different or find some points of

Unknown:

differentiation.

Unknown:

Have fun. Mercosul says also consolidation for 100 Thieves is

Unknown:

bad. Some of these content creators are heavily overpaid,

Unknown:

and in a region they don't need to be to tweet, you don't need a

Unknown:

US citizen.

Unknown:

This is true. This is true as someone who has just left the US

Unknown:

to YouTube.

Unknown:

Someone does doo doo doo. It's true.

Unknown:

Is both both great points have totally agree.

Unknown:

Guys, I want to bring up the third sorry for making the

Unknown:

segment so long, but we don't have that many articles this

Unknown:

week. Oh, this one is a bit sillier. Okay. And I just wanted

Unknown:

to bring up you know, you have phase going public, you have 100

Unknown:

Thieves with these sort of strategic moves, if you want to

Unknown:

call it that. And then and then guild esports. Also in the news

Unknown:

this week, with a story that's way less interesting. You'll

Unknown:

esports appoint safeguarding and well being leaved throughout the

Unknown:

esports industry, there's a real need for organizations to show

Unknown:

duty of care to the people they work with. Basically, someone to

Unknown:

make sure the players are okay, I'm paraphrasing, obviously,

Unknown:

they want to create a safer esports ecosystem for like the

Unknown:

players and their parents and things like that.

Unknown:

The pro players I mean,

Unknown:

you know, in the context of the hardship around esports, orgs,

Unknown:

and everything going on here. Does anyone think this is like

Unknown:

right on point? Is it tone deaf? Is it? You know, is it cost that

Unknown:

esports works probably shouldn't be?

Unknown:

You know, sound with? I mean, I'll read Chris's comment here.

Unknown:

See if you guys agree with it, he says BP it feels good use of

Unknown:

dollars. I mean, Chris, that that was my take. But I'm

Unknown:

curious how you guys feel about this? Yeah, look, I'm the

Unknown:

biggest soft group here. And even I'm like,

Unknown:

first.

Unknown:

I mean, if they were wildly successful, and had hundreds of

Unknown:

millions of dollars in revenue, and all that, of course, like,

Unknown:

of course, this is something that I like to see. But they

Unknown:

don't have that, though. I don't think that this is useful, and I

Unknown:

don't really give it.

Unknown:

Let's see, I love that you said that. Because if anyone was

Unknown:

gonna take that side, there was gonna be you. Right? I missed

Unknown:

that. I mean, I feel like there's other things that I've

Unknown:

seen that are along the same lines that are like, way that

Unknown:

make way more sense. For example, making sure that you

Unknown:

have good upward trajectory within the organization, making

Unknown:

sure that your creators are well taken care of encouraging good

Unknown:

habits among your athletes that they can perform better, like,

Unknown:

yes, all of those are very, very, very real things are

Unknown:

competitive esports team and, and for just running a good

Unknown:

organization, right. I think it's great to have happy

Unknown:

employees. But this like, whole, like, we want to make everyone

Unknown:

feel like there's no personal there's no direction to this. It

Unknown:

doesn't generate money. Guilty sports isn't doing well, like

Unknown:

this just feels like a throwaway. I don't get it. Yeah.

Unknown:

Heffalump says this is empty PR we're doing this for 20 years.

Unknown:

And as the industry grew, we do it quite sophisticatedly it's

Unknown:

called a team manager plus support staff. If it's a bigger

Unknown:

org true, right, like that should be just one one line one

Unknown:

responsibility lying on the team manager side, right? Your I

Unknown:

don't know if you need a whole VP position for this seems seems

Unknown:

wasteful. JM says that was hilarious. Chris, do you think

Unknown:

this would be a good move for larger organizations?

Unknown:

I'm curious what Chris thinks too. But what do you guys think?

Unknown:

Do you think this would be a good move for, you know, should

Unknown:

phase have made this hire

Unknown:

better already, because it's good publicity. And a culture is

Unknown:

important.

Unknown:

culture and relationships are even more important when you're

Unknown:

part of a competitive team. So I do think there's some, you know,

Unknown:

some merit to it. Obviously, we don't know what this person

Unknown:

paid, what their responsibilities are, what their

Unknown:

other responsibilities are, right, to the point that was

Unknown:

just made. I mean, they could also seek manager and then they

Unknown:

kind of moonlight as this therapist or whatever, as well.

Unknown:

But I definitely think, you know, I think Lindsey, his

Unknown:

answer was probably nuanced enough in terms of understanding

Unknown:

that these things are important, but also, maybe there are other

Unknown:

building blocks that are also important that need to build

Unknown:

first. Yeah, have some milk says if it's and it's for non

Unknown:

athletes, then it's called the HR, which is also normal to have

Unknown:

for anything more than 15 Plus, that's very, very,

Unknown:

very true. JM says something like TSM

Unknown:

I mean, TSM has their own their own issues in that department.

Unknown:

Sorry, we're not gonna get into but

Unknown:

they did get a bit of a slap on the wrist from Riot.

Unknown:

Matt says Damn, Chris is always spot on. Chris is always spot

Unknown:

on. You guys are all of you on fire with the comments today.

Unknown:

All right, guys, before we move on, just a quick word, this live

Unknown:

stream, this weekly news show very generously sponsored by

Unknown:

YouGov YouGov produces the absolute best data on gamers,

Unknown:

games, esports fans all around the world. Best of all, it's

Unknown:

living data, it's data that's constantly being updated. So if

Unknown:

you're looking to reach this gaming audience, if you're

Unknown:

looking to do business, in or around the gaming space, you

Unknown:

absolutely need to be talking to the folks that you have. It's

Unknown:

incredibly actionable data, you will make better decisions. If

Unknown:

you talk to you guys. It's just it's just the fact. And and if

Unknown:

you want there's a bunch of free insights free data, I will put

Unknown:

the link that we've published with

Unknown:

YouGov yougov@yougov.com slash b o e I'll put it in all the chats

Unknown:

yougov.com/boe Definitely go check that out, show you some

Unknown:

love. And if you want to reach out to them or if you want that

Unknown:

to be connected to them. Please feel free ask me ask Jimmy

Unknown:

Lindsey Jeff, any of us can connect you with the folks that

Unknown:

you love. We really appreciate their support. So go check it

Unknown:

out. You gov.com/boe

Unknown:

Heffalump by the way, says the irony of riot re slapping TSM

Unknown:

Yeah, I mean, heavy with irony, which why I'm not we're not

Unknown:

going to go down this this rabbit hole. A rabbit hole I do

Unknown:

want to go down is the doc you guys know how much I love the

Unknown:

doc and Doctor disrespect news. Lindsay, your reaction to the

Unknown:

doc is just reaction to the chair reviews. Don't worry, we

Unknown:

have a cheer review for you guys. So both of you can give me

Unknown:

an eye roll.

Unknown:

And the doc in the news, the headline here Doctor disrespect

Unknown:

is a two year break from YouTube to work on midnight society

Unknown:

games. So the two time is attempt is tempted to go all in

Unknown:

on his new studio. This actually happened live on his stream, he

Unknown:

was streaming. And

Unknown:

he opened the broadcast he was on pub G it says he found

Unknown:

themselves with nothing to play. Then he got on Call of Duty he

Unknown:

was complaining about Call of Duty how it's horrible. And then

Unknown:

he says I was sitting in my command center thinking what am

Unknown:

I going to play? That's what the gaming industry is for me right

Unknown:

now. I'm in one of those spells. So he's thinking of taking a

Unknown:

break until early 2024.

Unknown:

To focus on his game.

Unknown:

I mean,

Unknown:

I'll just say I gotta love this conviction if it's true. But

Unknown:

what do you guys think of you know, the doc giving up a very

Unknown:

lucrative streaming career to go focus on making his game? And is

Unknown:

there any conclusions to be drawn about the state of game

Unknown:

development like that he sees that as maybe a bigger

Unknown:

opportunity, like, what? What do you guys make of this? What

Unknown:

conclusions do you draw from this? Jeff, you have thoughts?

Unknown:

Well, I guess first, you know, to cover is broader point. I

Unknown:

mean, I think Matthew kind of summed it up, he's not wrong at

Unknown:

the gaming industry is in a little bit of a spell where

Unknown:

there's not many big games that have come out. So that's

Unknown:

correct. I mean, we're seeing that in the data, the numbers of

Unknown:

the revenue numbers, and just big game launches are down this

Unknown:

year. I think it's really a product of the console cycle,

Unknown:

and then also the hangover from COVID.

Unknown:

games that were already being made for COVID kind of came out

Unknown:

and things that started up during COVID. I've just taken

Unknown:

long, because there was work from home people were distracted

Unknown:

just in general. That's That's true. To get specific to the doc

Unknown:

I don't believe him. And I think if he does do this credibly,

Unknown:

because the really only selling point that this game has is in

Unknown:

so if he stopped streaming for three years, and builds a video

Unknown:

Video Game and then comes out three years ago, I was like, hey

Unknown:

guys remember me, I'm the guy that used to be a famous

Unknown:

YouTuber combined my video game. It's like he's killing his only

Unknown:

his golden goose, which is him and his personality and his

Unknown:

ability to mark. Like, that's the whole, that's the whole

Unknown:

value proposition this studio has is that he can market the

Unknown:

game, because he has his fault. Why would he get rid? That is an

Unknown:

interesting take i It's a great take hard to make sure.

Unknown:

Not to mention the existing sponsors that he's going to have

Unknown:

to cancel for next year. Though, I always like to liken these

Unknown:

things to other forms of entertainment and see how they

Unknown:

were done. And typically I go to music, because that's my

Unknown:

background. You see a lot of artists that say this is my last

Unknown:

album ever. And then I'm retiring, just to get hype on

Unknown:

that album for that month, or to get hype on the next album, when

Unknown:

they inevitably come out of retirement. You know, Jay Z, I

Unknown:

think was pretty famous for doing that with the black album,

Unknown:

which was, you know, some people think is best we don't, this

Unknown:

isn't a music show. So I won't get into it. But it's a common

Unknown:

PR stunt and move to get attention. And

Unknown:

it works in music. But that's because in music, you need that

Unknown:

downtime, many ways to create to think to decompress. Streaming

Unknown:

is altogether different. Because it requires day to day content,

Unknown:

it requires day to day fan engagement. That's one of the

Unknown:

things I think that advertisers and sponsors love about being in

Unknown:

this space is that they get that tangible relationship with the

Unknown:

audience in real time. And that's something that the doc

Unknown:

offers with that brand loyalty that he's developed and created.

Unknown:

So it's a very risky thing for him to just walk away from that

Unknown:

temporarily. Because this is such a competitive space,

Unknown:

there's no guarantee when you come back that people are still

Unknown:

going to want to watch you and that they haven't moved on to

Unknown:

someone that they resonate more with.

Unknown:

I think there were some former TSM gamers, wasn't it like De

Unknown:

Quan and a few others that had done that not not too long ago,

Unknown:

I haven't seen the stats on their numbers on if that was

Unknown:

successful or not for them. But um, to Jeff's point, you have

Unknown:

something that's risky already, that's compounded now by an

Unknown:

additional marketing vehicle and business that you've created,

Unknown:

completely based off of your ability to influence that same

Unknown:

audience to what you say and ask them to do on a day to day

Unknown:

basis. So

Unknown:

I don't know if this is just a PR stunt and short thing for

Unknown:

three to six months. But at the end of the day, he's not wrong.

Unknown:

I mean, there's nothing not a lot of great things to play

Unknown:

right now. So I That thing is the one thing that I do agree

Unknown:

with, I just don't know if this is your career and your brand.

Unknown:

If this is the right move for you.

Unknown:

We'll see how it goes. I mean, you gotta love the storyline

Unknown:

that Doc, you know, Doc saves the gaming industry. That's just

Unknown:

like that is a cool storyline, should it come to pass.

Unknown:

What's interesting is, history has sort of proven that

Unknown:

streaming audiences don't

Unknown:

aren't. Don't transfer platform to platform right there. They

Unknown:

drop off when you move platform to platform. What I don't think

Unknown:

is conclusive, historically, at least is do audiences transfer

Unknown:

over time. In other words, meaning like, because the doc

Unknown:

was banned, if you remember, I don't even remember how long he

Unknown:

was away from his stream. It was six months, something like that.

Unknown:

Maybe longer.

Unknown:

Maybe it might have been longer, but it was it was months at

Unknown:

least.

Unknown:

And I think his biggest stream ever was his comeback stream.

Unknown:

Right? Like was the stream that he had his first stream back?

Unknown:

The question is, if you disappear for a year or two,

Unknown:

does your entire audience come back after a year or two? It's

Unknown:

too long. If it was so long. Yeah, I think you're right. If

Unknown:

it was like he did this three month if it was like, Alright,

Unknown:

last quarter, we're pushing to launch like I'm heads down. They

Unknown:

could do a book, three years, two years, like, wait

Unknown:

three years now if he's not streaming. I mean, this is

Unknown:

probably this could be just a big stunt like Doc's coming back

Unknown:

to play the only game worth playing his right. And that's

Unknown:

kind of so maybe it's a temporary hiatus just until he

Unknown:

launches his game. I'm not sure.

Unknown:

Matt says it feels like the gaming industry is in one of

Unknown:

those spells, not just the dock. This is I mean, when I look

Unknown:

guys, I call this like real, real Oracle kind of stuff. I

Unknown:

said, this is where this is where things were leading. Matt

Unknown:

says I couldn't agree with Jeff more if the game isn't a

Unknown:

success. He can always use the I was distracted with streaming

Unknown:

excuse. This would actually put more pressure on him and

Unknown:

midnight society, I think. I mean, assuming people remember

Unknown:

him when he comes back, right. I think the crux of Jeff's point

Unknown:

is no one will care when he comes back.

Unknown:

Project says I think everyone's in that spell right now. I agree

Unknown:

with Jeff. him leaving can help and hurt the game. Depending on

Unknown:

how the game is delivered. There's a

Unknown:

A lot of promises this game is trying to deliver.

Unknown:

You guys really think that if he puts a tweet out a year and a

Unknown:

half from now, a lot of people aren't going to notice. Right?

Unknown:

Like if the if like you don't think he will still have some of

Unknown:

the power of his audience.

Unknown:

But it's a question of how much to because, of course, they'll

Unknown:

have some of the power. But how many, it's also

Unknown:

remember, what if he can keep, you have to compare it to what

Unknown:

the alternative? The alternative is, right? Like if he kept

Unknown:

building his stream, and then put out a tweet, hey, I'm about

Unknown:

to play my new game, come join my stream, he's gonna get a

Unknown:

million people. Will he get more than that? If you stopped

Unknown:

streaming through here? Okay, let me just make the

Unknown:

CounterPoint. Right. If he stopped streaming for a year,

Unknown:

and his audience gets cut by half, let's say, or even more by

Unknown:

80%. Okay. When he comes back, he still has 20% of his

Unknown:

audience, right? If the game is good, that 20% is the only

Unknown:

priming of the pump you need, right? If the game is really

Unknown:

good, that 20% is enough to sort of set off a chain reaction, I

Unknown:

think of virality to make the game a success. If the game is

Unknown:

no good, right? It doesn't matter if he has 20% of his

Unknown:

audience or 100% of his audience. It won't make the game

Unknown:

a success. Yeah, but he would still give it a better chance.

Unknown:

If there's more number one. Number two, he's giving up on

Unknown:

$20 million. In the meantime,

Unknown:

what's the benefit of having less people on the street so

Unknown:

less potential reach and giving up money? Like, unless he has

Unknown:

time? Like, unless he's maybe actually very hands on? It's

Unknown:

like, look, I really just don't have time to stream because I'm

Unknown:

building the game. Then I could, I guess.

Unknown:

Yeah.

Unknown:

Have fun. Monica says doctor. Disrespect is like amaranth

Unknown:

without a hot tub. He's business savvy. He can't quit streaming.

Unknown:

I mean, you guys are on fire today with the comments amaranth

Unknown:

without a hot tub. His game is a crap shot budget to low choice

Unknown:

of partner strange. This is just bait, Mimi. I mean, look, I have

Unknown:

high hopes for his game guys. Like he has, you know, decent

Unknown:

people.

Unknown:

And I like his choice of genre. Right? I like where he's decided

Unknown:

to go with the game. But all of you seem to agree that this is

Unknown:

just him. Like, this is just clever marketing from the doc

Unknown:

basically is what I'm hearing from everybody.

Unknown:

Adam says I'm late. Adam doesn't leave. Just happy. You're here.

Unknown:

Welcome. Alan says he's giving six week updates. If you

Unknown:

preorder. Right, that's a way to hear from the duck.

Unknown:

You know, I don't know, now that we know that the game is at

Unknown:

least a couple years off. Maybe preordering isn't the best bet.

Unknown:

Because that's still a long time and a lot can change. Who wants

Unknown:

six weeks updates for two years? Yeah.

Unknown:

One additional level? Okay, cool.

Unknown:

Mark says it's not a question. We have tangible return numbers

Unknown:

for influencers, as well as numbers of games slash platform

Unknown:

swaps. There's a significant loss of audience a year is an

Unknown:

eternity again, I'm not I'm not debating right. It's a fair

Unknown:

point. No question he will lose audience the question is, does

Unknown:

the time off allow him to build a better game? And does the bet

Unknown:

is the better game the greater success factor than the size of

Unknown:

his audience? Right? That's that's the trade off in my mind.

Unknown:

That's those are the levers.

Unknown:

Half the mug says a game doesn't publish with launch. It's a

Unknown:

constant alphabeta launch teasing patching, marketing,

Unknown:

etc. It's a full lifecycle full time and hands on job this is

Unknown:

also true.

Unknown:

And but the doc knows this, right? He used to work for

Unknown:

Activision. So, you know, he's familiar, I think with the with

Unknown:

the ins and outs of that industry.

Unknown:

Project says honestly, now that I think about it, I followed a

Unknown:

YouTuber way back named Frankie on PC, he randomly just stopped

Unknown:

uploading for six years, six ish years ago, with about 2 million

Unknown:

views on that last video. He came back about six months ago

Unknown:

with the same views. So who knows it could still work. Wow.

Unknown:

I mean, I would think I mean, you guys thought think that's

Unknown:

probably an outlier, right? That's probably not the it's

Unknown:

just I know, a way different platform, like building up a

Unknown:

YouTube audience in that way is completely different than

Unknown:

building up a live streaming audience. Yeah.

Unknown:

Good point. Like if we stopped streaming even for a few weeks

Unknown:

cuz I think we would lose significance like numbers it's

Unknown:

just the reality people people expect content.

Unknown:

Alright guys, let's let's move on, we talked about the dark

Unknown:

enough. I want to stay on this content theme though let's talk

Unknown:

about Nintendo, Nintendo in the news finally maybe doing

Unknown:

something on the content side we all are going to agree on.

Unknown:

And this one is Nintendo buys animation studio forums Nintendo

Unknown:

pictures. So it says the sub headline Nintendo cinematic

Unknown:

universe could go way beyond Chris Pratt Mario. So they're

Unknown:

buying Dynamo pictures. It's a visual production company based

Unknown:

in Tokyo, focusing on CG animation and motion capture.

Unknown:

They worked on several TV projects like URI on ice, and

Unknown:

games like near replicant and Death Stranding, the studio has

Unknown:

worked on Pickman short movie series. So they've done some

Unknown:

work with Nintendo. And the goal here, it says according to the

Unknown:

filing, the acquisition is intended to, quote, strengthen

Unknown:

the planning and production structure of visual content in

Unknown:

the Nintendo group, and focus on developing visual content

Unknown:

utilizing Nintendo IP. So

Unknown:

you know, we, we've, we've, I think, been critical of Nintendo

Unknown:

for not doing more, you know, movies, TV shows, etc with their

Unknown:

IP. Do we think this is a big enough move for them guys? Like

Unknown:

is this? I had not heard of Dynamo pictures? Maybe that's

Unknown:

just because I'm not, you know, about aware of the Tokyo, you

Unknown:

know, animation scene. But

Unknown:

is this is this a Nintendo scale move? And do you feel like

Unknown:

there's enough conviction from Nintendo that we may start

Unknown:

seeing real TV and movies here, Lindsay, let me start with you.

Unknown:

Just like this. I don't know. I guess I feel pretty pessimistic

Unknown:

about this just because it feels not about it actually happening.

Unknown:

But

Unknown:

I don't know. It's just like, it's so late. Like it's been I'm

Unknown:

glad that it finally happened. At this point, like any any

Unknown:

excitement that I felt that Nintendo produce content has

Unknown:

just waned considerably. That being said, I think this is the

Unknown:

way to get a lot. Like I hope they do a lot of stuff for kids.

Unknown:

I totally think this is a great way to get younger generations

Unknown:

back into playing the games and stuff. I'm, I'm super not

Unknown:

excited about the Chris Pratt movie. I just don't think it's

Unknown:

going to be great, but whatever. At least they're trying it doing

Unknown:

it. Um, so I guess on the whole, I think this is a good move. I

Unknown:

think it's a good strategy. I think it's Nintendo, so it won't

Unknown:

go. It won't be crazy. It's not gonna like lose them tons of

Unknown:

money, they're not gonna go all in and run out, bankrupt

Unknown:

themselves in a year because Nintendo and they're very

Unknown:

careful. I'm glad that it's finally happening. My excitement

Unknown:

level is like, below the floor.

Unknown:

Tendo fan girl that lead and then we I feel like we're, you

Unknown:

know, we've been talking about it for a while, but I don't

Unknown:

think like for longest time, people were very bad. Like the

Unknown:

whole industry was very bearish on kind of crossover IP between,

Unknown:

we saw a lot of really high profile failures last, like 20

Unknown:

years. And then I feel like around the time of like, The

Unknown:

Witcher coming out on Netflix, was when people saw the light

Unknown:

bulb sort of went off. We were like, oh, okay, maybe this whole

Unknown:

video game transmedia concept does work.

Unknown:

And so we've seen a lot of announcements since then. But

Unknown:

you know, it's not

Unknown:

the 1800s. So I just would have expected a little bit more on

Unknown:

media strategy. While you're not wrong, but I think I think

Unknown:

we're, you maybe be a little hard on it, we should be happy

Unknown:

that they're changing.

Unknown:

Do you guys think that this may just be very Japan focused, and

Unknown:

we may not see any of this stuff in the US market, for example,

Unknown:

or North American market?

Unknown:

Pretty amazing. Yeah. No, I mean, there's definitely a need

Unknown:

for region specific content. So I hadn't thought about that. I

Unknown:

was thinking more along the lines of like, major motion

Unknown:

pictures. And I also wanted to say Lindsey, that Chris Pratt is

Unknown:

a national treasure so you take that back. I don't know how to

Unknown:

do that, either.

Unknown:

But I do I do like his acting. But um, yeah, I don't think

Unknown:

they're gonna put him in like a Japanese TV series and have it

Unknown:

dubbed over anything so I don't know what they're gonna do with

Unknown:

the studio. All I know is, whenever we see announcements on

Unknown:

a Nintendo it's always,

Unknown:

to me at least late or smaller or not as innovative as I would

Unknown:

have expected or hoped for. I don't always see a lot of

Unknown:

support for their fans or their community the way you see a lot

Unknown:

of other companies that are taking big swings, other than

Unknown:

maybe the theme park, which still isn't open yet. Right? So

Unknown:

I'm I'm just happy that they're expanding and that they're

Unknown:

finding to Jeff's point, another way to connect with their

Unknown:

audience and another media because

Unknown:

they don't have to have like every show come out and then be

Unknown:

successful. They just need that one. You know, hit hit tv see

Unknown:

theories that justifies the entire move, and then continues

Unknown:

to, you know, to fuel the the need for innovation and

Unknown:

additional products. So,

Unknown:

yeah, but but but making a region specific is, I don't

Unknown:

know, I don't know how I would feel about that. I think that

Unknown:

there's too large of a global community that if they did

Unknown:

something like that, Paul, it would probably be created in

Unknown:

such a way, like the office, for example, where they have just 20

Unknown:

different products of the same series or same show for each of

Unknown:

their communities and regions. Hopefully, there, they would

Unknown:

intelligently design it in that way, where it's not just limited

Unknown:

to one region in one language in one product. And I imagine that

Unknown:

would be with the right foresight and pre production

Unknown:

that would be feasible. It's unclear if this acquisition is

Unknown:

big enough to even create a major motion picture, right?

Unknown:

Like that's, it may just be for a TV like to make TV shows for

Unknown:

Japan that I just I had not heard of this production company

Unknown:

at all and hadn't really heard of the projects they had done.

Unknown:

So it felt a little small potatoes to me. Jam, though is

Unknown:

excited for it says yes, Nintendo. I'm here for it. I

Unknown:

mean, jam you and a lot of people. All I need to see says

Unknown:

is a Starfox animated series slash movie.

Unknown:

Like I said, there's there's demand for it right? And then

Unknown:

tendo should know this there is there's a rabid fan base for

Unknown:

Nintendo content project says I would see more along the lines

Unknown:

of movies rather than shows for the studio. I think it's a good

Unknown:

addition, but nothing that really grabs my attention. Yeah,

Unknown:

projects. I think we all sort of agree with that. Right? Like,

Unknown:

it's it's not even a story that got much coverage to be honest,

Unknown:

like you would think Nintendo really, yeah, if they doubled

Unknown:

down on content in a big way would have been a much bigger

Unknown:

story. Alright, guys, let's let's move on. We have two quick

Unknown:

stories I want to end with this one guys is more just so I can

Unknown:

say, Look, I can't wait for this future where you guys all made

Unknown:

fun of me when I said we were going to escape to our garages

Unknown:

to play video games in our cars.

Unknown:

Elon Musk, in agreement with me says we should see steam running

Unknown:

on Tesla soon. I mean, I'm kind of joking. But like, this is

Unknown:

kind of major right? Steam opens up a massive library of games to

Unknown:

be played in your car.

Unknown:

Does this mean Tesla's become maybe the ultimate portable

Unknown:

gaming device?

Unknown:

I mean, it's, I mean, it's the definition of landmass with a

Unknown:

grain of salt. I think he's always, you know, multiple years

Unknown:

late on these promises, but he does generally come through

Unknown:

them. So I do believe that we probably will see this happen,

Unknown:

but probably in three to five years. And Steve is also not

Unknown:

known for their speed of execution and following through

Unknown:

on things either. So yeah, I mean, I think it'd be cool. I'd

Unknown:

be more interested. It'd be cooler if this was like him. And

Unknown:

Gabe Newell, like on a stage somewhere actually present a

Unknown:

product versus, you know, I don't even know if Elon had

Unknown:

cleared this with steam, or if he's just saying, Oh, we're

Unknown:

gonna make it possible, you know, so, but like more

Unknown:

information, but yeah, I think it's, it's cool, cool story. On

Unknown:

July 16, he tweeted a demo, probably next month. So well,

Unknown:

that's great. There you go.

Unknown:

Jimmy, Lindsey, any other thoughts on this Chris says Elon

Unknown:

solves the housing crisis I mean, he saw is going to solve a

Unknown:

lot of crises Matt says is it is mobile hardware, but a switch

Unknown:

theme that costs significantly less than a car

Unknown:

it's an excellent point back and also very true.

Unknown:

I could probably write off my my Tesla though, I don't know if I

Unknown:

could write off

Unknown:

definitely the ultimate mobile hardware, though, I would get so

Unknown:

dizzy as a passenger if I were gaming while someone else were

Unknown:

driving. So I don't know. Honestly, from a tech

Unknown:

standpoint, it would be interesting to see what kind of

Unknown:

data they can collect from their users and drivers that are going

Unknown:

to be using features like this when where and you know, I could

Unknown:

because Tesla is a lot more than just a vehicle right and and

Unknown:

steam as a gaming platform as a social media platform as a

Unknown:

gaming news platform and all these different things that you

Unknown:

can really get get from it you know, I just I just love that

Unknown:

Elon such a gamer and that he's you know, taking his passions

Unknown:

and just forcing it or it doesn't even make sense but just

Unknown:

like know you're all gonna have this available to you and 1% of

Unknown:

Tesla drivers will take advantage of it. You'll see the

Unknown:

wellness VP will will be prescribing extensive gaming in

Unknown:

your garage to get away from the family, you know.

Unknown:

JM says I still wouldn't be able to get through my Steam library.

Unknown:

This is true

Unknown:

to the 200 indie games that you downloaded because it was part

Unknown:

of some sale at some point. You probably still wouldn't make it

Unknown:

through

Unknown:

All of them, even if you could play it in your Tesla.

Unknown:

Alright guys, one last thing. And then this is well, let me

Unknown:

just read this comment, then I'll move on to the one last

Unknown:

president says I'd be playing apex in the parking lot while

Unknown:

the girlfriend grabs groceries. I mean, the use cases are just

Unknown:

so numerous. I mean, I've been I've been saying this over and

Unknown:

over again, Lindsey has doubted me every step of the way.

Unknown:

Yolanda and I on the same page.

Unknown:

Alright, guys, I did a dark story. So to be fair, in the

Unknown:

ongoing feud between Lindsey and Jeff, I have to do a gaming

Unknown:

chair story. And so as most of you know, we are the world's

Unknown:

foremost gaming chair reviewers on this channel in addition to

Unknown:

being gaming business experts, but

Unknown:

here we have a DI box throwing their hat in the ring. So the

Unknown:

headline here is company files patent for motion simulating

Unknown:

gaming chair. So it says the haptic technology and gaming

Unknown:

peripheral Company D box files a patent for a new gaming chair

Unknown:

with a built in actuator for motion simulation.

Unknown:

Obviously, it's all about deeper immersion, which they talked

Unknown:

about. I wanted to connect this guys to what we talked about

Unknown:

last week. And by the way, you can see how this like there's

Unknown:

this motor connected at the bottom remember my talking about

Unknown:

butt kickers and and the razor acquisition which we discussed,

Unknown:

Razor buying a haptics company to integrate in their chairs.

Unknown:

There's no one see a trend here now with the box announcing, you

Unknown:

know, a chair with haptics built in? Do we think this is a fad?

Unknown:

Or do we think there's there that the next sort of generation

Unknown:

if you want to call it gaming chairs will be more immersive in

Unknown:

this way. And not just like bucket seats pulled out of a car

Unknown:

and painted in red and black?

Unknown:

I mean, I don't know what it takes to get it to stick because

Unknown:

I remember like all those years ago when 4d movies were all the

Unknown:

rage, and it was kind of the same thing. And it was very

Unknown:

based on haptics. So

Unknown:

I can obviously see a world where this takes off. But I

Unknown:

think maybe it's not the next generation, I think it's two or

Unknown:

three down still. But I do think that this will eventually be the

Unknown:

thing that people get used to.

Unknown:

I'm curious guys, truly, is it fad? Or is this technology

Unknown:

haptics built into chairs? Do we like five years from now we're

Unknown:

just all going to have one.

Unknown:

I think price is going to be a big indicator of that. You know,

Unknown:

because a lot of people, obviously there's a market for

Unknown:

$150 to $300 Gaming chairs, but a lot of people still are going

Unknown:

to use their their families, you know, Chair at their family

Unknown:

computer, and now you're talking about something that's going to

Unknown:

be significantly more expensive, just for some type of novelty,

Unknown:

when it's supported only on the games that you know that offer

Unknown:

that. So and then on top of whether or not a game supports

Unknown:

it, then it has to feel real, right? It can't just be my chair

Unknown:

vibrating or else like what's the point of that? So I think

Unknown:

there's a lot to be answered.

Unknown:

You guys know I'm not a big fan of this because I just want a I

Unknown:

mean, I'd be happy with a built in massager and a heater and my

Unknown:

chair.

Unknown:

And apparently that's asking you a lot because I still don't have

Unknown:

that one. But but I don't necessarily need all the

Unknown:

rumbling or all the bells and whistles. I think there's

Unknown:

definitely going to be a small market for it. It sounds fun.

Unknown:

It's chairs probably going to be really heavy, though it's

Unknown:

probably going to be pretty expensive. And again, the the

Unknown:

first versions, I just don't know how well they're going to

Unknown:

work, how realistic they're going to feel. So too many

Unknown:

questions left for me. But whether or not it's a fad, I

Unknown:

think there's a niche in gaming culture for things of this

Unknown:

nature. So I would imagine if they can get the price to a

Unknown:

tolerable point. And if they can make it feel like I'm, I don't

Unknown:

know, in a car that's driving or whatever else that is intended

Unknown:

to be experienced, to a slightly believable way that that'll have

Unknown:

some success.

Unknown:

Project says I could see this being very useful in VR in the

Unknown:

metaverse as well as the mind immediately goes to Sim setups.

Unknown:

Look for proper sim setups. A buttkicker is like almost a

Unknown:

necessity like that haptic feedback in a good sim setup

Unknown:

really is I don't know if any good set of the doesn't have

Unknown:

that.

Unknown:

Chris says fed. Everyone watching this has turned off the

Unknown:

rumble feature on their controller.

Unknown:

I just think the rumble feature on the controller. It's a good

Unknown:

analogy. I think that's a fair analogy, to be honest. Not that

Unknown:

I think about it. But I for some reason I can't I don't have a

Unknown:

good argument why I think it's more likely to succeed in

Unknown:

chairs.

Unknown:

I think maybe the range of things you can simulate is

Unknown:

higher.

Unknown:

If you have a good haptics, Adam says I think it will be like

Unknown:

scuf controllers there'll be a market but not every gamer will

Unknown:

have one. You know if the price comes out like every cell phone

Unknown:

today has a haptic

Unknown:

So like I mentioned this on last week's I think live stream like

Unknown:

has a haptic motor in it. And it was originally only like iPhones

Unknown:

and things that had it so that they could do you know, touch

Unknown:

that was believable. That felt like a button.

Unknown:

So it I think it could catch on when you have big players like

Unknown:

Razer putting dollars behind it, it'll, it'll be interesting to

Unknown:

see if other manufacturers come out with similar products.

Unknown:

Guys, that gets us to the end of this week's live stream slash

Unknown:

weekly news show slash post podcast live stream.

Unknown:

I just want to thank everybody that came participated. This was

Unknown:

such a great stream, Adam and Chris and projects and JM and

Unknown:

Matt and Nephilim oak and Alan and, you know, all you guys some

Unknown:

new faces here, which is always fun to see. Really appreciate

Unknown:

you guys

Unknown:

coming in participating. Jimmy Lindsey, Jeff, thank you guys.

Unknown:

As always, don't forget guys tune in to the podcast this

Unknown:

week. It's a great episode. Make sure to follow business of

Unknown:

esports everywhere, on Instagram, on Twitter, on

Unknown:

LinkedIn on YouTube on Tik Tok. Literally, we're on every single

Unknown:

platform, we put content on every single platform that's

Unknown:

different. It's not just podcast and the new show.

Unknown:

Also, if you don't already sign up for the newsletter, and go

Unknown:

visit the business of esports.com. We put literally

Unknown:

dozens of written articles up every single day. And the

Unknown:

newsletter also comes out daily. So there's just so much more

Unknown:

content than what you guys find just in these videos and these

Unknown:

podcasts.

Unknown:

So thank you to everyone. Don't forget guys the most most

Unknown:

important thing. The future is fun. We'll see you guys next

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