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I am working on building out my syllabus for Fall 2024 semester right now and was thinking about a great guest we had. Last year during our Fall semester at USC my master’s students had the honor of hosting Mr. Nolan Bushnell as our guest speaker. As most of my connections know Nolan is really the father of the video game industry, having been responsible for the launch of Pong, Atari and later Chuck E Cheese.&nbsp;Three nuggets our class took away from his talk:Look for the business opportunity in every innovation- Nolan talks about seeing early video games “Spacewar!” demoed at MIT and “Tennis for Two” created by Physicist William Higinbotham and how that set him on the path to create and commercialize “Pong” and later “Asteroids.” Mashups are a great way to differentiate your product- He talked about looking at popular trends and trying to find ways to combine them. His success story here is Chuck E Cheese. Combining the popularity of arcades with pizza joints focused on kids (specifically birthday celebrations) was a mashup that went massive. Just look at hit games like Palworld on Steam which mashed survival, and collection. Say YES, a lot- Nolans actual quote in class was “Fake it till you make it”. He told the story of getting his first retail order and saying YES to a unit order 5x what his team said they could build. They figured it out just in time for the holiday and Atari was on its way. I’m particularly motivated by the notion of saying YES, a lot. So many times, we hear all the reasons why something can’t be done but the success stories are usually around motivated individuals taking chances and stretching what is possible.&nbsp;It reminds me of a quote from another entrepreneur I admire MR. Richard Branson:“If somebody offers you an amazing opportunity but you are not sure you can do it, say yes – then learn how to do it later!”

NOLAN BUSHNELL AND THE POWER OF SAYING “YES”

Ok its budgeting season and that means marketing teams are trying to decide how to determine how much to spend next year. Here are four methods that I have used in the past:1️⃣ Percent of Revenue This method calculates the budget as a percentage of the game's total revenue. It's straightforward, easy to scale, and aligns well with predictable revenue streams. ✔️ Easy to calculate and scales with revenue. ❌ Doesn’t always account for specific marketing strategies or goals, such as increasing Share of Voice (SOV).2️⃣ Top-Down In this approach, the budget is set by upper management, finance, or your boss, who provide a set amount for marketing. ✔️ Quick and straightforward, useful for predictable business planning. ❌ Limits the marketing team’s flexibility, reducing their ability to drive creative solutions.3️⃣ Share of Voice (SOV)/Market A conquest-driven method that uses industry benchmarks to set targets, helping to determine budget needs based on competitive analysis. ✔️ Ideal for early-stage products aiming to outpace competitors. ❌ Requires solid competitive data and may restrict growth by focusing on a narrow set of competitors.4️⃣ Goal-Driven/Bottom-Up The budget is built based on the specific goals set by the marketing team. This method gives the team ownership to drive their business according to strategic goals. ✔️ Empowers marketing teams, fostering creativity and alignment with business objectives. ❌ Demands precise goal-setting and alignment, which can be time-consuming.Choosing the right method depends on your game's unique needs:Percent of Revenue: Best for predictable revenue streams where marketing goals are less complex. Top-Down: Useful for quick, top-level decision-making when flexibility isn’t a priority. Share of Voice: Best for new products that need to stand out in a competitive market. Goal-Driven: Ideal for experienced marketers managing GaaS &amp; F2P titles, where strategic alignment is critical. From my experience as a CMO, there’s no one-size-fits-all solution. The key is to tailor your approach to the game’s needs, goals, and the data you have. 📊

Determining marketing budgets

Now more than ever, as budgets tighten and marketing teams shrink through layoffs it becomes paramount to invest in your games community. I have a phrase I use with my clients, “community first”. It isn’t just a strategy—it’s a dedication to creating real value for players, rooted in meeting core human needs. Inspired by Maslow’s Hierarchy of Needs, my team and I look at community engagement through the lens of value that meets players’ psychological and social needs, creating lasting connections beyond the game itself.Here are some key ways we’re seeing value delivered in successful game communities without having to burden the dev team for new announcements or assets:🎥 Content that stirs emotions and excites: Healthy debate/drama, discussion that spurs speculation, and empathy for players, not only empower community members but also fosters a sense of belonging and tribalism.💬 Genuine engagement: AMAs, dev profiles, sharing gaming moments, and direct authentic social interactions allow players to understand that we are fans too, fulfilling their social and belongingness needs by building mutual respect between players and developers.🏆 Recognition and rewards: Leaderboards, prizes, player-driven moderation, and organized events give players opportunities for achievement and recognition, further satisfying the need for esteem and a sense of accomplishment.When marketing budgets are tight, a community-focused approach means going beyond gameplay to serve psychological needs—belonging, recognition, and growth. When communities find genuine value, they keep coming back—not because they have to, but because it’s where they feel at home.<figure id="figure-z55utniffbm33g2ymx"><img id="z55utniffbm33g2ymx" src="https://cdn.durable.co/blocks/35fYH3CsQCUi7fqOJyEhai9lmSi7ZBrCrWuAb2K7WsisxOIygke8ni25xqerfGeu.png" alt="" title="" class="object-cover bg-gray-100 " style="aspect-ratio: 3/2; object-position: center center;" data-corners="default" data-aspect="3:2" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/35fYH3CsQCUi7fqOJyEhai9lmSi7ZBrCrWuAb2K7WsisxOIygke8ni25xqerfGeu.png" data-mce-style="aspect-ratio: 3/2; object-position: center center;"></figure>

Steve Fowler Consulting

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NOLAN BUSHNELL AND THE POWER OF SAYING “YES”

Determining marketing budgets

Community is driven by providing value