A VC-based View of Strategy

There's a fascinating article in Forbes which is, technically, about the next steps for gaming companies.

In fact, it's about lots more than that.  If you're paying attention, it is excellent guidance for any organization's strategy.

It's even better guidance for how to make lots of money.  Now.

It's all about application and distribution.

Just as in the heyday of the dot-com insanity, VCs started out with gaming companies just wanting games.  Now they want more.  Much more.

They want distribution channels - domestic and international.

They want a clear marketing strategy that will create the buying opportunities practically before the game goes live.

And, if you're really on top of your game (no pun intended), they want you to figure out how to take those games and create real-world applications of them.

Their example?  FarmVille - a virtual farming game that has taken the Internet by storm.

The lessons to be learned in this are simple:

  • Whatever you're doing, it isn't enough.  
  • However far your vision goes toward new markets and distribution channels, you've got to stretch further.
  • No matter what you may think the restrictions are on the application and use of your product or service, lift those limits and think beyond.
Most important, do it now - because if you don't, you can bet that someone else is.  And then you'll be gone.

This isn't about creating new games and gaming companies.  This is about strategy and tactics and profitability and growth.

VCs are always a good guide to how to make money.  It's worth paying attention to them.