Bits, Bytes, and Burgers with Byrne Hobart

Patrick McKenzie (patio11) is joined again by Byrne Hobart, writer of The Diff, for a follow up conversation about “whales” – and so much more – across the gaming, aviation, software, hospitality and fast food industries. Patrick and Byrne also discuss their writing process, knowledge management, and how they use AI tools.–Full transcript available here: www.complexsystemspodcast.com/byrne-hobart-whales-miscellany–Sponsors: Check | WorkOSCheck is the leading payroll infrastructure provider and pioneer of embedded payroll. Check makes it easy for any SaaS platform to build a payroll business, and already powers 60+ popular platforms. Head to checkhq.com/complex and tell them patio11 sent you.Building an enterprise-ready SaaS app? WorkOS has got you covered with easy-to-integrate APIs for SAML, SCIM, and more. Start now at https://bit.ly/WorkOS-Turpentine-Network–Links:The Diff thediff.coCapital Gains capitalgains.thediff.coByrne Hobart’s book Boom: Bubbles and the End of StagnationKongregate Presentation: Video (https://www.youtube.com/watch?v=P7SDByLlCHw) Slides (https://blog.kongregate.com/dont-call-them-whales-f2p-spenders-and-virtual-value/)–Twitter:@patio11@byrnehobart–Timestamps:(00:00) Intro(00:45) Economics of video game currencies (02:56) Pricing strategies in mobile gaming (05:08) Monetization skew towards high-end players (08:08) VIP systems and casino host analogy (11:08) Whale behavior in casual games (15:03) Hyper-consuming outliers in other industries(19:09) Sponsors: WorkOS | Check(21:25) Hobbies and opportunity costs (23:01) Custom software for tech billionaires (26:30) Evolution of website development (29:55) Restaurant websites and delivery apps (40:17) McDonald's take rates(44:59) Restaurant groups(53:34) Tech company cafeterias and employee benefits (57:57) Google's business model and economic feedback loops (1:00:57) Early Google investment anecdote (1:02:16) Writing as a memory aid (1:04:46) Using ChatGPT for memory assistance (1:10:30) LLMs as writing and coding aids (1:13:34) Children's interaction with ChatGPT (1:18:11) Arguing with LLMs and using them for research (1:03:00) Wrap–Complex Systems is part of the Turpentine podcast network. Turpentine also has a social network for top founders and execs: https://www.turpentinenetwork.com/