We can get into the health of this industry a little bit, but the sheer size of the overall industry, the size 188. Why is that important? Yes, gaming is the most significant portion of the entertainment market today. We're larger than linear TV, we're larger than I.T., we're larger than movies, music in many cases, some of those industries combined. Gaming has continued to grow. It's proven that's recession resilient. It's been tested and tried in just about every way, shape, and form. And yes, we're really pleased to see that that funding has normalized in the last six quarters. We're seeing roughly around 500 to $600 million invested on a quarterly basis into games. And we see no reason that that will stop and that paired with interest rates driving down open up. The IPO market's pretty bullish on at 2025 for games. Jason, given the size, the sheer scale of the overall industry, how much of a chunk of change does it get in the VC

area? Is it synonymous with the extent of its size in entertainment broadly? Yes. So if you look at a larger venture, there's about 50 to $60 billion invested a quarter. We're seeing about 500 to 600 million of that in games. So it is a significant portion. It's also a lot more stable. I think you see a lot less flash in the pan. You're seeing right now, you know, a couple of years ago and with three or is this year you're seeing in gaming this kind of steady state. And so we're very pleased to see that we're expecting to see continued interest in rounding out this year. And also we add to 2025. I want to just try out if we can get all three of us on screen for a moment because of it. And we had such a fun conversation last week, Thursday, we're in L.A. We're discussing sort of the industry more broadly when it comes to gaming.

And we had a legend from Blizzard join the show. He's got a new studio. But there is still a lot sort of its focus on when it comes to the development of games and how hard it is. Right. You're talking about Mike Moore. Hyman Last night I was at an event with Jason Schreier with loads of developers in the room. And the reason I'm so fixated on Jason's 188 billion number is it's getting bigger. But all the people in that room, Jason, who would developers would tell you that they're suffering layoffs at video game publishers and developers are increasing the crunch. The crunch. You know exactly what that is, is more real than ever. So why is the industry getting bigger? I mean, I think it's getting bigger because people continue to want to spend time in interactive environments. You know, if you look at younger generations, they're spending less and less time watching TV, which is passive. They want to be in an environment that

they can interact, impact. And so that's absolutely true. Why is there the crunch in games? People talk about this a lot is because, look, users are very demanding. We expect a lot from our games. We've been spoiled over the years. We have great creatives producing high-quality content that we get to enjoy on a daily and weekly basis, and that's never going to stop. I think you're talking about the layoffs. Yes, we've seen about 13,000 jobs lost in the games industry that we've tracked from the public companies. That's likely a lot higher if you include private companies. We expect that we'll see more. And I think that's a healthy thing for the industry. I know that's really hard to say and hard to hear, but we over-hired during the boom era. We're going through a right-sizing now, and it's really encouraging to see that even in that right-sizing, our industry continues to thrive and to grow.

And that is an encouraging reality, I think, for those in the Games and one that we should all remember. What's not healthy at the moment is child safety. I know I've got a seven-year-old at home who is desperate to be on roadblocks and on Minecraft. Instead, I had him books about it because I've got to get my safety precautions in gear, understand how I make him safe online before I let him do it. How are you thinking about what's happening versus ticked up the child safety bill and also how that rules things like roadblocks? As kids spend more and more time online and a lot of empathy for this. As a parent myself, you have to take that very seriously in every way, shape, and form. Right. So wherever this is and wherever it is, that's where you need to protect the kids. And so when we're looking at this, you know, we think about this in a lot of

different ways. And, you know, every single gaming firm has to reconcile that. If you command a kid's time, you're taking responsibility in sort of digital daycare. We've invested pretty heavily in this space. One of our investments is Cady, which is actually tackling this issue straight on, which is trying to promote and ensure that the companies are compliant with different regulations across the globe. This is one of the huge challenges for games companies. Again, I have a lot of empathy for them. When you release a game, you release the game and you know, over 100 countries are trying to stay compliant and ensure that every kid is safe according to the laws. It's very difficult, and that's why we made this investment early on. And they've continued to thrive. I think what you're highlighting to Caroline with Roblox, obviously the Hindenburg report that came out was pretty intense with her allegations, I'd say,

towards kind of two sides of the house. One is child safety, the other one is kind of their financial metrics, all hundred on the child safety metrics for a second briefly. They have to take this very seriously. It's something they have to look into. But until proven otherwise, you know, I think that Roblox has proven to be a best-in-class digital property. I would like to think that they can handle these issues head-on.

Gaming's Entertainment Dominance

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