Episode Transcript
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SPEAKER_00 (00:38):
Hey there, Press
Starters, and welcome to the
Press Start Leadership Podcast,the podcast about game-changing
leadership, teaching you how toget the most out of your product
and development team and becomethe leader you were meant to be.
Leadership coaching and trainingfor the international game
industry professional.
(00:59):
Now, let me introduce you toyour host, the man, the myth,
the legend, ChristopherMifstude.
SPEAKER_01 (01:07):
Hey there, Press
Starters, and welcome back to
another awesome edition of thePress Start Leadership Podcast.
On this week's episode, we'll bediscussing lessons from lean
times in the game industry.
Balancing the yin and yang forlong-term success.
How video game industry leaderscan carry lessons from lean
(01:28):
times into good times byembracing balance, empathy, and
sustainable practices.
The video game industry is not astraight line of progress.
It moves in cycles, shiftingbetween boom periods of
innovation, investment, andrecord-breaking profits, and
lean times defined by layoffs,budget cuts, and canceled
projects.
(01:48):
These ups and downs are notrandom.
They are part of the rhythm of acomplex and ever-changing
industry.
For leaders, the challenge isnot just surviving the lean
times, but learning from them.
Lean times reveal truths aboutresourcefulness, discipline, and
resilience.
They strip away the access andforce studios and leaders to
focus on what really matters.
(02:10):
The question is whether leadersin the game industry will carry
those lessons into the goodtimes that follow, or whether
they will repeat the samemistakes that led for
instability in the first place.
This podcast explores thelessons leaders should learn
during lean times, how tobalance the yin with the yang of
scarcity and abundance, and howto create sustainable practices
(02:33):
that endure through every cycleof the video game industry.
Most importantly, it providesactionable steps leaders can
take to align their studios withlong-term stability, creativity,
and human-centered leadership.
The yin and yang of the gameindustry.
The concept of yin and yangcomes from Chinese philosophy
(02:53):
and symbolizes theinterconnectedness of opposites.
Yin represents qualities likestillness, reflection, and
conservation.
And yang represents action,expansion, and outward energy.
Both are necessary.
In fact, each contains the seedof the other.
In the game industry, lean timescan be seen as yin, moments of
(03:14):
scarcity that requirereflection, careful use of
resources, and disciplinedstrategy.
Good times are yang, periods ofgrowth, abundance, and rapid
expansion.
Problems arise when leaders leantoo heavily on one side.
Endless expansion withoutrestraint leads to
overextension.
Endless contraction withoutvision leads to stagnation.
(03:35):
Balance is the key.
Leaders who honor the lessons ofyin during scarcity and apply
them during yang periods ofgrowth will create healthier,
more resilient studios.
The dangers of forgetting leantime lessons.
One of the most common mistakesin the video game industry is
that when good times return,leaders quickly forget the
(03:56):
lessons learned during leanperiods.
Studios may overhire, overspendon unnecessary tools, or chase
unsustainable growth.
Investors demand rapid returns,and leaders give in, assuming
the abundance will never end.
The result is predictable.
The next downturn arrives andthe studios are caught off
guard.
Layoffs sweep through theindustry, projects are
(04:18):
cancelled, and the cycle ofinstability continues.
To break this pattern, leadersmust consciously carry lean time
lessons into every stage of thecycle.
Lessons lean times teach thegame industry.
Focus on core strengths.
Lean times force studios to askhard questions.
What are we truly good at?
(04:38):
What value do we uniquely offerplayers?
What projects are essential andwhat is distracting fluff?
During abundance, it is temptingto pursue multiple projects at
once or chase every new trend.
Lean times remind leaders thatstrength lies in focus.
Studios that survive downturnsoften do so because they
concentrate on their corecompetencies.
(05:00):
Inactionable Step.
Create a core first distractionreview for your studio.
List all ongoing projects andinitiatives.
Identify which align directlywith your studio's mission and
strengths.
Deprioritize or pause anythingthat does not serve that core.
Practice financial discipline.
Lean times reveal how fragilefinancial planning can be.
(05:23):
Many studios rely heavily onexternal funding or short-term
cash ejections.
When money dries up, the lack ofreserves become catastrophic.
The lesson is simple, but oftenignored.
Build reserves during the goodtimes.
Treat profitability as anopportunity to prepare for the
inevitable downturns.
Actionable step.
(05:44):
Establish a financial bufferequivalent to at least six
months of operating expenses.
During profitable periods,dedicate a portion of revenue to
this buffer rather than spendingeverything on expansion.
Value human capital.
Layoffs are often an industry'sfirst reaction to financial
strain, yet lean times highlightjust how important human capital
(06:06):
is.
Teams that stay together duringcrisis often emerge stronger,
more cohesive, and moreinnovative.
Cutting staff without strategyundermines long-term stability.
Actual step.
Before considering layoffs,evaluate alternatives such as
reduced hours, voluntarysabbaticals, or temporary
project shifts.
Communicate openly with staffabout challenges and involve
(06:29):
them in problem solving.
Empathy during scarcity buildsloyalty that endures in
abundance.
Innovate within constraints.
Some of the most creativebreakthroughs in the video game
industry emerge from lean times.
Scarcity forces developers toinnovate, streamline mechanics,
and think differently.
Smaller teams often delivergroundbreaking experiences
(06:50):
because they cannot affordbloated systems.
Actionable step.
Use lean times as an opportunityto experiment.
Encourage teams to developprototypes with limited
resources.
Frame constraints as creativeprompts rather than obstacles.
Document these lessons and applythem even when resources return.
Build sustainable cultures.
(07:10):
Lean times expose unhealthystudio cultures.
Crunch, poor communication, andlack of transparency become
unsustainable when resources arethin.
Studios that prioritize empathy,transparency, and sustainability
in lean times are betterpositions to thrive when growth
returns.
Actual step.
Conduct culture audits duringlean periods.
(07:32):
Survey staff about well-being,communication, and workload.
Use this data to implementchanges that create sustainable
practices, not just emergencymeasures.
Strengthen community engagement.
Players often become even morecritical during lean times,
scrutinizing modernizationpractices of value for money.
Studios that treat communitieswith respect, transparency, and
(07:53):
empathy.
During tough periods, buildtrust that pays off when growth
returns.
Actual step.
Maintain open communicationchannels with your community.
Share updates honestly, even ifthey contain delays or
challenges.
Reward loyalty with transparencyand authentic engagement rather
than exploitative monetization.
Reassess scope and ambition.
(08:14):
Lean times teach the importanceof scope discipline.
Ambitious projects areinspiring, but without realistic
boundaries, they collapse undertheir own weight.
Lean times force leaders toreassess what is truly
achievable.
Actual step.
Apply lean time scope disciplineto all projects, regardless of
financial climate.
Use milestone-based developmentto evaluate progress and pivot
(08:35):
before overcommitting resources.
Balance of Yin and Yang.
Carrying lean time lessons intoabundance.
The real test of leadership isnot just surviving lean times,
but applying those lessons whenabundance returns.
Balancing yin with yang meansconsciously bringing the
restraint, reflection, andresourcefulness of scarcity into
the energetic expansion ofgrowth.
(08:57):
Here are ways leaders in thegame industry can maintain
balance.
During profitable launches, setaside reserves rather than
overextending budgets.
When hiring during growth,remember the human-centered
approaches that work during leantimes.
Continue fostering creativeconstraints even when resources
are abundant to avoid bloat.
(09:17):
Keep communication transparentand empathetic with teams and
communities at all times.
Actual step number one.
Create institutional policiesthat enforce these lessons.
(09:40):
Examples.
A mandatory reserve fund policy.
A permanent ban on crunch withsustainable timelines enforced.
A culture code that prioritizesempathy and transparency.
By institutionalizing lessons,leaders ensure they are carried
forward rather than forgotten.
Actionable step number two.
Train leaders in dualitythinking.
(10:01):
Leaders often default to binarythinking.
Lean times equal survival mode,good times equal growth mode.
Balancing yin with yang requirestraining leaders to think in
dualities.
Empathetic leaders ask, how dowe grow without losing
discipline?
How do we conserve withoutlosing ambition?
Another actionable step forthis.
Provide leadership training onsystems thinking, resilience,
(10:24):
and sustainable growth.
Encourage leaders to analyzedecisions through the lens of
both scarcity and abundance.
Actionable step number three.
Build scalable systems.
Scalability is the bridgebetween lean times and good
times.
Systems built during scarcityshould be designed to expand
gracefully during growth.
Examples.
(10:46):
Project management pipelinesthat work for small teams but
can scale up.
Communication tools that handleboth lean and expanding
staffing.
Financial models that accountfor fluctuations in revenue.
Another actionable step here.
Audit your current systems forscalability.
Identify where processes willbreak if the teams double in
size or if revenue dropssuddenly.
(11:08):
Adapt now before extremesarrive.
Actionable step number four.
Create a culture of reflection.
Lean times invite reflection,but leaders often abandon this
practice when things improve.
Building reflection in thestudio culture ensures balance.
Another actionable step here.
Schedule quarterly reflectionsessions with leadership and
staff.
(11:28):
Ask, what lessons from leantimes still apply?
What practices should continueeven during growth?
Document outcomes andincorporate them in the
strategy.
Actionable step number five.
Maintain transparency with teamsand stakeholders.
During lean times, leaders oftenlearn the importance of clear
communication.
Teams rally more effectivelywhen they know the reality of
(11:50):
the situation.
Unfortunately, when good timesreturn, transparency often fades
as leaders revert to secrecy andtop-down decision making.
If empathy and honesty workedwhen survival was on the line,
they will work just as well whengrowth resumes.
Practical ways to carrytransparency forward.
Hold regular all-hands meetingseven when there is good news to
share.
(12:10):
Make financial and projecthealth reports accessible to
teams.
Encourage upward feedback soleaders hear problems before
they become crisis.
Transparency balances yin withyang by honoring the reflective
lessons of scarcity whileguiding expansion with clarity.
Actual step number six.
Build partnerships instead ofexploitation.
Lean times often shows studioshow reliantly they are on
(12:33):
partnerships, whether withpublishers, contractors, or
platform holders.
These relationships can belifelines, but only if they are
based on trust.
In the spirit of Yin and Yang,partnerships must not be seen as
opportunities to extract maximumprofit, but as shared paths to
resilience.
How to apply this lesson in goodtimes.
Negotiate contracts that respectfair timelines and compensation.
(12:56):
Share credit with collaboratorsrather than claiming ownership
of all success.
Support small studios orcontractors during your periods
of abundance.
Partnerships based on empathyrather than exploitation ensure
that when lean times return, youhave allies instead of
adversaries.
Actual step number seven,diversify without losing focus.
Lean times remind leaders not toput all their eggs in one
(13:19):
basket.
Over reliance on a singleproject, funding source, or
platform often becomes fatalwhen conditions shift.
Diversification is critical, yettoo much diversification during
good times can become anothertrap, stretching studios thin.
Balance lies in smartdiversification that aligns with
core strengths.
Another actual step here.
(13:44):
Examples include contract work,DLC expansions, or publishing
partnerships.
Avoid diversifying in the areasthat dilute, focus, or exhaust
teams.
Actual step number eight.
Carry over empathy into playerrelations.
In lean times, many studios areforced to lean on their
communities for support.
Crowdfunding campaigns, earlyaccess programs, and transparent
(14:04):
development diaries thriveduring scarcity.
Yet, once a studio achievescommercial success, some leaders
distance themselves from theirplayers.
Empathy is not seasonal.
Players who felt value duringlean times must continue to feel
value during good times.
Practical strategies.
Continue community updatespost-launch, not just when
making a sequel.
Offer fair pricing models andavoid exploitive monetization.
(14:27):
Celebrate your community withevents, spotlights, or
user-generated contentshowcases.
Carrying forward empatheticcommunity practices strengthens
loyalty across entire franchisecycles.
The role of leadership inbalancing yin and yang.
Leaders in the video gameindustry are the stewards of
balance.
It is their responsibility tointegrate the reflective lessons
of lean times with the expansiveopportunities of growth.
(14:50):
This requires humility,foresight, and discipline.
Key leadership qualities forbalancing yin with yang include
humility, recognizing thatabundance is temporary and
scarcity will return.
Discipline, resisting thetemptation to overextend during
growth.
Empathy, treating people andplayers with respect regardless
of financial climate.
(15:10):
Envision, looking beyond thecycle to build sustainable
legacies.
Without these qualities, leadersrisk repeating the mistake of
the past.
Building a studio culture thathonors both yin and yang.
Cultures are shaped not only byleadership decisions, but also
by daily practices.
Studios that thrive acrosscycles create cultures that
value both reflection andaction.
(15:32):
Both restraint and ambition.
How to embed yin and yangbalances into culture.
Celebrate small wins as much asbig launches to maintain
perspective.
Encourage teams to speak up whenscope feels unsustainable.
Create rituals of reflection,such as quarterly postmortems
that include financial andcultural review.
Reforce that well-being andcreativity are as important as
(15:54):
revenue milestones.
When culture itself balances yinand yang, studios no longer
swing wildly between extremes.
They move through cycles withsteadiness.
Long-term benefits of carryinglean time lessons forward.
The payoff for leaders whoembrace balance is significant.
Stability across cycles.
Studios no longer collapse whenconditions change.
(16:16):
Stronger teams.
Employees stay together andcontribute more when they feel
secure and respected.
Healthier communities.
Players reward empatheticengagement with loyalty and
advocacy.
Creative innovation.
Balanced teams take risk inthoughtful ways, leading to more
meaningful games.
Investor confidence.
Studios that demonstratestability attract sustainable
(16:38):
investment rather thanspeculative capital.
The benefits of balance are bothhuman and financial.
Yin and Yang create not onlycultural health but also
competitive advantage.
Final thoughts.
Choosing balance over extremes.
The game industry will alwaysmove through cycles of scarcity
and abundance.
Lean times are painful, but theyare also rich with lessons about
(16:58):
focus, discipline, and empathy.
The true measure of leadershipis whether those lessons are
remembered when growth returns.
What the game industry needs nowis not just more technology,
bigger budgets, or fasterpipelines.
It needs leaders who balance yinwith yang, who carry forward the
wisdom of lean times into theenergy of good times.
It needs empathy as much asambition and reflection as much
(17:19):
as expansion.
Leaders who embrace this balancewill not only create more
sustainable studios, but alsohealthier cultures and better
games.
The challenge is great, but theopportunity is greater.
Balance is not just philosophy.
It's a practical leadershipstrategy that can transform the
future of the video gameindustry.
All right, and that's thisweek's episode of the Press
(17:40):
Start Leadership Podcast.
Thanks for listening, and asalways, thanks for being
awesome.