Everything is (going to be) a game
By: Stephen Chou
Tags: Games, Consumer, Food, Venture Capitalist, VR

Everything is (going to be) a game

Animal Crossing x Education

Gaming is becoming a part of the everyday lives of billions of people today. It is so habitual and common that 75%+ of Americans have at least one gamer in their household. It is the biggest form of entertainment today (bigger than films and music combined). Gaming is already part of mainstream culture, and it grew even bigger ($175B) at a faster rate (20% YoY) in 2020 when most of the world sheltered in place and looked for ways to entertain, escape, and socialize through games.

The pandemic forced many of the population to connect and live through the interactivity provided by the Internet. I believe the cat’s out of the bag now, and a lot of the habits formed during the pandemic are not going back to the way they were.

The aging demographic of digital natives (Millennials and Gen-Z) and Gen-X will fuel the demand for more interactivity. Consumers who grew up with the Internet, video games, mobile, and social media have expectations for instant feedback, connectivity, and data. This increasingly affluent cohort will demand the same experience in every aspect of life (financial services, health, work, real estate, etc.). The digital adopters who signed up for e-commerce or connected with their family and friends remotely through casual titles like Among Us during the pandemic will also be more open to spending more time with interactive media (in replacement of physical activities).

Source: Ark Invest

The global “virtual world” market (gaming and consumer AR/VR) is projected to reach $400B by 2025. I believe gaming as a powerful form of entertainment is just the start, and that we will see interactive media in other parts of life. We are beginning to see more designers adopt gaming elements in startups to improve user experience and behavior to great effects. Here are some areas that could dramatically change with interactive media:

Wellness

Consumers care about their health and want to feel better, and we’ve backed some great companies in this space — Aktiia, Misfit, Noom, and Supernatural. Exercise and dieting are boring and inconvenient for much of the population. A growing number of consumer wellness ideas have incorporated gaming elements that led to higher virality, engagement, and retention. From Headspace’s running streak and achievements to Peloton’s leaderboard (though I would argue Peloton’s UX and social features have a lot more room for improvement), gaming makes it easier for consumers to stick to a habit. We are barely scratching the surface here. I am excited to see new startups emerge that will fundamentally change how we eat, move, and sleep.

EndeavorRX: the first FDA-approved prescription game

Medicine & treatment

In 2020, the FDA approved the first prescription video game that can be marketed and prescribed as a medicine. It’s a title for 8–12-year-olds with ADHD. There are also previous reports of burn victims who used virtual reality to reduce the perception of pain. Are there other areas that could incorporate interactive media and gamification for the good of humanity? I would love to see more interactive media ideas applied to medicine that could lead to better outcomes.

Neo after learning the fundamentals of martial arts

Education & training

What if you could go through a simulated practice the night before a big event (term sheet negotiation, job interview, surgery, MLB NLCS Finals, Hinge date)? Virtual reality can help us feel like we are facing off with a real-life counterparty. It could transform the way we learn and teach. Interpersonal interactions could also be improved with more empathy through practice with avatars. Are we going to eventually learn martial arts in a virtual dojo like Neo in The Matrix? Maybe…? I hope so!

A virtual happy hour in Spatial.io

Enterprise

The founder of the addicting and powerful email client Superhuman, Rahul Vohra, credits video games as inspiration for his design philosophy for behavior change. It’s got quests (inbox zero), tutorials (onboarding), efficient controls (shortcuts), and pacing (speed). This year, we also saw the YC-backed virtual HQ company Gather raised a $26M Series A led by Sequoia to solve remote work with both gaming UX and behavior. The platform recreates the workplace virtually that reminds one of old Game Boy titles (a Japanese company actually tried to have virtual meetings in Animal Crossing during the pandemic). It also uses spatial audio to increase the sense of presence. We also see this idea realized in immersive 3D, accessible through a platform of your choice. With remote / hybrid work here to stay, the workplace could use video game technologies to keep people together.

Where else are we going to game? If you are an entrepreneur working on something that can be 10x’d with games, please find me.