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Evidence receipt / belief

Published · transcript-backed

Ben Gilbert: belief

16 Mar 2023 Acquired Nintendo's Origins

“I think the scale economies when you define it, is that you can make a fixed cost investment that is more valuable to you than it is your competitors because you can spread that cost across more customers that can pay it back in a bigger way.”

— Ben Gilbert

Source trail

Everything needed to verify it.

Speaker
Ben Gilbert
Attribution
Verified speaker
Claim type
belief
Recorded
16 Mar 2023
Publisher
Acquired

Transcript context

…Okay, I totally agree with you. I think this is the number one source of power. Isn't this network economies, though? A two-sided network effect. The more users you have on your install base, the more attractive you are to the developers, the more in better 10X, 100X developers you have developing for your platform, the more likely you are to attract more users? It's a good question. I think the scale economies when you define it, is that you can make a fixed cost investment that is more valuable to you than it is your competitors because you can spread that cost across more customers that can pay it back in a bigger way. Because you have more customers to spread it across, that fixed cost investment is more valuable to you, Nintendo, than it would be to your nearest competitor. The fact that Netflix can pay more for content because they have more people watching. I think this might actually be a special case of both network and scale economies, where it's both fused together.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.

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