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Speaker 1: Good morning everybody. Welcome to the Daily ODS. It is Friday,

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Speaker 1: the fourth of February. Happy Friday, another week under the belt.

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Speaker 1: Today in the Deep Dive, I'm going to be talking

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Speaker 1: to Sophie and Maddie from your own good Company. We're

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Speaker 1: going to be talking about the explosion of the gaming market,

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Speaker 1: and yes we're going to be talking about wordle. But first, Billy,

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Speaker 1: you've joined me today for the headlines. What is making

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Speaker 1: the news this morning.

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Speaker 2: New Zealand Prime Minister Jacinda Adern has announced the country's

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Speaker 2: international border will gradually reopen at the end of this

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Speaker 2: month in a five stage process. Vaccinated New Zealand citizens

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Speaker 2: in Australia will be able to return to New Zealand

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Speaker 2: Hotel quarantine free from eleven fifty nine pm on the

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Speaker 2: twenty seventh of February. However, they will still need to

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Speaker 2: self isolate for ten days.

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Speaker 1: CityPoint Christian College has withdrawn its enrollment contract. We've covered

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Speaker 1: this story throughout the week on Instagram, which asks parents

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Speaker 1: to agree that children could be excluded if they were

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Speaker 1: openly transgender. It comes after more than one hundred and

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Speaker 1: fifty five thousand people signed a petition asking the Brisbane

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Speaker 1: school to recall the contract.

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Speaker 2: US President Joe Biden has announced the government will restart

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Speaker 2: an initiative to reduce the death rate of cancer by

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Speaker 2: at least fifty percent over the next twenty five years.

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Speaker 2: The program also aims to quote improve the experience of

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Speaker 2: people and their families living with and surviving cancer.

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Speaker 1: And today's good news, I have a Winter Olympics story

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Speaker 1: for you. Ahead of the opening ceremony which will take

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Speaker 1: place tonight. The Jamaican bobsleay team has qualified for the

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Speaker 1: Winter Olympics for the first time in twenty four years.

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Speaker 1: The bobs led Pilosh and Wayne Stephens said, Jamaican Bobslay's

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Speaker 1: obviously linked with cool Runnings, but we're more than just

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Speaker 1: a movie. We're actually fierce competitors and we're out there

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Speaker 1: to do really well and Billy I wish them the

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Speaker 1: best of luck. I'm so excited, guys because for the

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Speaker 1: first time in twenty twenty two, I am joined by

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Speaker 1: Maddi and Sophie from Your Good Company, one of Australia's

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Speaker 1: best financial podcasts. Absolutely love listening to them, had a

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Speaker 1: great time listening to their summer series Maddian. So how

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Speaker 1: is the break and settle us into the new year

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Speaker 1: of financial news. What do we need to know right now? Sam?

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Speaker 3: My break was fantastic, mainly because I discovered a great

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Speaker 3: new word game that I have become quite obsessed with.

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Speaker 3: You may or may not have heard of it. The

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Speaker 3: New York Times this week has bought Wordle, the viral

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Speaker 3: online word game that has become the talk of the

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Speaker 3: town over the summer holidays. Created last year by Josh

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Speaker 3: Wardle for his partner to play, the game went public

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Speaker 3: in October twenty twenty one, and in just a few

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Speaker 3: months it has grown to over three million players. And

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Speaker 3: then this week it was announced that the game has

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Speaker 3: been bought by media giant The New York Times for

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Speaker 3: a lot seven figure sum not too shabby for a

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Speaker 3: few months work.

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Speaker 1: And is this type of thing common where a fad company.

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Speaker 1: I don't mean to have a go at any word

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Speaker 1: or players on one myself, but you know, it hasn't

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Speaker 1: been around for very long. I'm only on a twelve

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Speaker 1: day streak at the moment. Is it common that such

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Speaker 1: a company with such a short lifespan gets snapped up

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Speaker 1: by a major player? Well?

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Speaker 3: I think if we think about the New York Times business.

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Speaker 3: If you dig a little deeper, we can really see

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Speaker 3: why this would be an attractive investment for the New

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Speaker 3: York Times. If we think back to og newspaper sales,

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Speaker 3: the New York Times generated its revenue primarily from advertising.

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Speaker 3: But these days, like the majority of advertising money has

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Speaker 3: moved onto platforms like Google and Facebook. And then one

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Speaker 3: of the key ingredients for driving engagement in the publishing

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Speaker 3: business for decades has been games and crosswords. So as

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Speaker 3: publishing businesses make the shift online, they're trying to find

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Speaker 3: ways to maintain this aspect of their business too. I

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Speaker 3: have to add, given the New York Times motivation to

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Speaker 3: boot subscription revenue, there has been a lot of fear

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Speaker 3: that word or would be moved behind the publisher's paywall.

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Speaker 3: Not to worry, at least in the short term. The

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Speaker 3: New York Times has chosen their words very carefully in

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Speaker 3: saying that the game would remain free at this stage.

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Speaker 1: We'll have to wait and see how many green and

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Speaker 1: yellow squares come up in front of the paywall and

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Speaker 1: behind the paywall. I do know that the New York

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Speaker 1: Times cooking and crossword sections are two of the major

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Speaker 1: revenue plays for them online so it'll be interesting to

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Speaker 1: see how word all fits into that environment, Sophie. Now

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Speaker 1: turning to you, we hear a lot about the explosion

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Speaker 1: of eGaming, both from a consumer side but also from

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Speaker 1: a business owner side. What can you tell us about

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Speaker 1: the emergence of that space.

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Speaker 4: Yeah, well, I feel like the gaming industry really took

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Speaker 4: off in twenty twenty when the pandemic hit and everyone

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Speaker 4: kind of had to revert back to going indoors. And

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Speaker 4: a real indicator of this was that the van Ek

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Speaker 4: Video and Gaming E Sports Exchange was up eighty four

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Speaker 4: percent in twenty twenty. But now in twenty twenty two,

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Speaker 4: the space is still heating up with some of the

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Speaker 4: biggest acquisitions that we've seen in the gaming space. So

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Speaker 4: some of the acquisitions we've seen is Microsoft announced that

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Speaker 4: it bought the game developer Activision Blizzard, which is famous

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Speaker 4: for the likes of you know, Call of Duty or

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Speaker 4: Guitar Hero. I personally used to be a great Guitar

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Speaker 4: hero player. But they bought that for seventy five billion dollars,

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Speaker 4: which is three times the amount that they've ever bought

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Speaker 4: a company four before. And we also saw Sony this

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Speaker 4: week announce that it bought the sci fi game studio

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Speaker 4: Bungee as the entertainment giant tries to make a name

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Speaker 4: for itself in the future of gaming.

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Speaker 1: So we're seeing similar trends in the gaming industry to

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Speaker 1: other big industries. You know, smaller companies that are popular

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Speaker 1: amongst consumers being bought by these gigantic major players. Is

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Speaker 1: their particular value for these major players in these smaller

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Speaker 1: companies in terms of new customers or how much people

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Speaker 1: are spending whilst they're in a games universe? Like, what

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Speaker 1: is it about these smaller companies that is attracting the

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Speaker 1: big guys?

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Speaker 4: Yeah, well, I guess there's a couple of different reasons.

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Speaker 4: The first kind of look at it is like the

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Speaker 4: financial side. You know, in twenty twenty two, post that

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Speaker 4: twenty twenty boom, their share prices of these companies have

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Speaker 4: dropped a little bit, So big companies do see a

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Speaker 4: bit of financial value in the fact that they can

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Speaker 4: sweep them up for a little bit cheaper. But to

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Speaker 4: your point about spending in the games, most of these

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Speaker 4: big companies are seeing it as a strategic acquisition. As

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Speaker 4: we kind of move into the next iteration of the Internet,

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Speaker 4: which is the metaverse. So to be frank, a lot

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Speaker 4: of these big companies have their head in the game

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Speaker 4: part in the pun hah as. People like Amazon have Twitch,

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Speaker 4: Google has YouTube, where gaming is huge. Facebook has literally

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Speaker 4: become meta, and there's a lot of competition overseas as

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Speaker 4: well with the likes of ten Cent Holdings, which is

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Speaker 4: leading the gaming sector in China. So a lot of

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Speaker 4: these acquisitions are really about staying ahead of the game

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Speaker 4: in terms of the metaverse.

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Speaker 1: And to finish off with both of you this morning,

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Speaker 1: I just wanted to get a little bit of advice

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Speaker 1: from you. I'm noticing a lot of anxiety around the

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Speaker 1: stock market at the moment, and we've spent a lot

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Speaker 1: of time on the daily I was kind of looking

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Speaker 1: at what are the key reasons for the stock market crash,

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Speaker 1: But one of the questions that keeps coming up is

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Speaker 1: should I be worried? What do you think is the

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Speaker 1: answer to that? Right now?

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Speaker 3: I feel like I need to premise this by saying

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Speaker 3: we did not give financial advice, of course, but I

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Speaker 3: actually got in trouble. We did our first episode back

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Speaker 3: this week talking about what's going on in the markets

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Speaker 3: and what you can sort of do about it. And

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Speaker 3: apparently I made too many jokes about trying to time

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Speaker 3: the dip. So I would say advice is, don't try

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Speaker 3: and time the dip. If you invest for the long

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Speaker 3: term and stay calm, then you should be on track.

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Speaker 4: I would just add that during a time I'm like this,

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Speaker 4: there can be a lot of anxiety and people can

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Speaker 4: be very fearful of the markets. But if you do

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Speaker 4: have a long term perspective, then you can really use

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Speaker 4: this as a buying opportunity and sticking to your strategy

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Speaker 4: of investing regularly.

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Speaker 1: Stay calm, invest long term, look forward to the future

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Speaker 1: by gaming stocks, playword or We've covered a lot this morning.

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Speaker 1: Sophie and Maddie from your own good Company, thanks so

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Speaker 1: much for your time. We really appreciate it. You can

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Speaker 1: check them out wherever you're listening to this podcast, you

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Speaker 1: can also listen to theirs. Have a fantastic Friday, everybody.

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Speaker 1: If you want to follow news over the weekend, we'll

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Speaker 1: have everything up to date on the Daily os over

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Speaker 1: on Instagram. Until then, we'll speak to you on Monday.

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Speaker 1: Happy Friday,