Ben Gilbert: evaluation

Transcript context

…Except for the Spider-Man deal. That's a cornered resource. I think they're largely competing in the marketplace with pictures. With electronics, products, and solutions, I kind of feel the same way. I know I'm over-indexing on cameras because it's what I know and there's a lot of other stuff in here, headphones, and lots of stuff I'm missing. I feel like they have a superior product a lot of the time, but they're really not able to communicate that in a way that enables them to price meaningfully higher. I think if the Sony camera was twice as expensive as a comparably good Canon, I definitely would get the Canon. I don't think there's any reason why they're able to be extra profitable there and they historically haven't been. Financial services are just generally good businesses, so no surprise that that's a profitable one for them. Then it just comes down to gaming, which is close to a third of the company in revenue and profit. I don't know what their power is today. I think I worry that there really isn't one. There are not a lot of players. It's a big investment to do business with them as a game developer. It's expensive as a consumer. It has meaningful switching costs as a consumer to switch from one ecosystem to the other and buy a new box and learn all the new controllers. It's interesting though, with Game Pass and if the industry moves much more to subscription dynamics, I do think a lot of this power goes away. Switching costs become a lot lower. Network economies become a lot less powerful.…

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