Speaker unverified: belief

Transcript context

…I want to ask you about this. Once you turned on monetization across all the platforms and the economy started to work, it seems pretty quickly after that the business became a really good business. You were generating a significant amount of revenue at pretty high margins, right? Yeah, especially if you break out, like what’s fixed cost versus variable cost? The cost of supporting the service of Rec Room is relatively small. We need Wii services, we need Azure services, we need maybe this networking middleware, and then we need moderation teams. What’s that cost? All scales really nicely. Most software businesses is really, how much do you want to spend on R&D to ensure that you’re growing years down the line? The business is growing really nicely. I think that there’s really, really interesting dynamics from the user-generated content side just because the revenue can grow really nicely without much input from us. We have slightly lower margin on that revenue versus us— But you have to pay some of that out to creators.…

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