What founders can learn from a game company founder

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I’m not a gamer. Never even played one on TV. But as a kid I played checkers, chess, Monopoly, Parchesi and various card games. But I only did so because all my friends and acquaintances did, it was a “social network.”  By the time I went to college I had abandoned games entirely. And when the PC revolution hit in the late 1970s with its focus on games I continued to ignore them. And as a mentor, I can only recall on single session with a game developer in my ten years of mentoring.

But The Wall Street Journal article The Man Behind ‘Fortnite’, sub-titled At age 20, Tim Sweeney founded Epic Games in his parents’ basement. His company now owns one of the most popular videogames on Earth. But he doesn’t want the credit, caught my attention, perhaps because it was on the front page of the Exchange section with a great photo (see above) and but more profoundly, the last sentence in the sub-title:  But he doesn’t want the credit.

What can founders learn from Tim Sweeney, founder and CEO of Epic Games Inc., the developers of the worldwide blockbuster Fortnite?

Let’s start with company location:

While the biggest U.S. videogame companies are clustered in Los Angeles, New York and the Bay Area, Epic is based in Cary, N.C., down the road from Raleigh. Mr. Sweeney said the location prevents Epic from being swayed by Silicon Valley groupthink.

Actually there’s a bit more to it than that. The Research Triangle of North Carolina is rife with universities, the hiring pool for all startups, and high tech companies. Yet its moderate climate and moderate cost of living beat the heck out of Boston and New York. So lesson one is carefully consider where to locate your venture, taking into consideration the wants and needs of your future employees.

Secondly, Tim Sweeney spent a tremendous amount of time and energy making sure that Fortnite ran on virtually every device that could run a game. Why? Because of lesson three, games are inherently social. So making Fortnite ubiquitous created the largest possible social network for players of the game.

By erasing the barriers between players with different devices, Epic effectively turned “Fortnite” into a massive social network. Wearing headsets to talk to one another, groups of friends trade jokes and gossip while battling to survive.

Lesson four is how to set up your office. Rather than a cube farm or long tables of developers elbow to elbow, all wearing headphones, Epic has a series of six-person offices. “We find small group offices like this strike the best balance between individual work and group collaboration, versus solitary offices or cube farms.” says Sweeney.

Perhaps the most important decisions Sweeney made concerned the business model and playing mode, for lack of a better term.

Most free games make money by charging for weapons and super-hero powers that help gamers triumph over each other. But Epic resolved not to charge for those items. Rather it sells cosmetic add-ons, like dance moves or a pair of limited-edition Air Jordan sneakers. And again swimming against the tide, while Fortnite is a “war game” there’s no blood or guts. Its cartoon, bloodless style is welcomed by gate-keeping parents.

So two lessons here: tweak existing business models and user experiences, don’t try to totally remake them.

Perhaps the key lesson is how Fortnite keeps the user experience fresh:

Epic’s daily restocking of its virtual store and weekly content updates gave “Fortnite” another advantage. It could quickly incorporate player feedback and seize on sudden pop-culture obsessions, such as a hip dance move like The Floss.

“Every week we learn what’s working and what’s not, and we constantly evolve the game,” Mr. Sweeney said.

People have an innate need for novelty but also an aversion to the totally alien; refreshing a familiar experience hits the sweet spot between novelty and alienness.

Epic conintues to innovate. The company has added a “creative mode” to Fortnite, enabling players to build without the threat of enemy fire. And Epic is now competing with Valve Corp’s Steam by launching an online store that sells computer games.

And finally giving credit where credit is due:

“I think the thing I’m proudest of is not creating ‘Fortnite,’ ” Mr. Sweeney said, “because I didn’t create ‘Fortnite.’ But I did create and nurture the company that built ‘Fortnite.’ ”

A plethora of lessons from a videogame company founder. Don’t try them all, but some no doubt will be a fit and help your company compete. They won’t turn your venture into Epic Games, but they may up your game.

Author: Mentorphile

Mentor, coach, and advisor to entrepreneurs, small businesses, and non-profit organizations. General manager with significant experience in both for-profit and non-profit organizations. Focus on media and information. On founding team of four venture-backed companies. Currently Chairman of Popsleuth, Inc., maker of the Endorfyn app for keeping fans updated on new stuff from their favorite artists.

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