If the majority of mobile casuals' target audience takes Ozempic, what effect does that have on games? No one's asking these questions, so welcome to the Game Economist Cast. Weight loss drugs, AI copilots, and gambling apps dominated the most expensive media real estate on earth, and games were barely in the frame. In this episode, we unpack what that signal means for interactive entertainment, Eric uncovers Riot’s 2XKO downsizing to Google’s Genie 3, and the future of engines. Phil previews his GDC talk on the economics of a billion-dollar cosmetic economy, Chris breaks down his attempt to design and publish a trading board game, and we ask a harder question: in a world of Ozempic and infinite AI supply, what actually happens to gaming demand? We discuss: • The 2XKO reset and the economics of niche within niche genres • Team size, burn rate, and why a 160-person fighting game team changes the break-even math • Free to play cosmetics versus box price DLC in a capped DAU genre • Why betting apps can out-monetize most games on ARPDAU • How appetite suppression might reallocate time, spending, and loop sensitivity • Genie 3 and the cost curve of game production • Engines as rule governance layers in a probabilistic content world • Cosmetic economies as foundational theory • Scarcity, signaling, and equilibrium pricing in digital status markets • Price discovery, private information, and turning trade into tabletop play Listen now!

Chapters

• (00:00:00) - Do Dicks Make You Smarter?
• (00:03:14) - the economics of a billion-dollar game economy
• (00:05:21) - The Economics of Cosmetics
• (00:06:29) - Let's Talk Economics with Game Developers
• (00:08:36) - 2xKo Cut Their Team In Half
• (00:09:42) - 2xKO: A Niche Within a Niche
• (00:12:23) - On 2xK's Failed Fight
• (00:15:53) - Brawlhalla's $200 Million Run Rate
• (00:18:48) - How to Find Your Love of Gaming
• (00:20:59) - Do You Think Every Minute Played Playing Video Games Is Being Used for
• (00:21:49) - Tunic: A Masterclass in Game Design
• (00:23:41) - June's Journey: The Most Complex Game Ever Made
• (00:24:24) - June's Journey: The Hidden Objects Theme
• (00:26:20) - Phil Philonomics: No One Plays Games Together
• (00:30:28) - I Made a Board Game Without Money
• (00:33:16) - Super Bowl Gambling
• (00:34:29) - The Future of AI Ads
• (00:36:47) - Weight Loss Pills and Gaming
• (00:43:24) - Do You Think Being a Whales Is Harder Than Being a
• (00:44:01) - Gambling Apps vs. Sports Betting
• (00:47:42) - Is AI a Threat to Video Game Companies?
• (00:54:05) - Will AI Make Games More Cost Effective?
• (01:00:23) - B2B vs. Mainstream
• (01:00:39) - Game Economics