Magic the Gathering's Creator Wants to Create an Even Better Game

23 Nov 2023 · 59 min

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Odd Lots Podcast Episode Summary

Episode Title

Magic the Gathering's Creator Wants to Create an Even Better Game

Hosts

  • Joe Weisenthal
  • Tracy Alloway

Episode Description

This episode features a conversation with Richard Garfield, the creator of *Magic: The Gathering*, and Arka Ray, the CEO of Garfield's new gaming studio, Popularium. The discussion revolves around the economic dynamics of *Magic: The Gathering*, the implications of collectible card pricing, and the lessons learned applied to their upcoming game, *Chaos Agents*.

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Key Themes and Discussions

The Phenomenon of Magic

The Gathering

  • Background: *Magic: The Gathering* (MTG) surged to popularity in the mid-1990s, leading to a collectible card market.
  • Economic Dynamics: The rise in card values raised concerns about accessibility, which could alienate players unable to afford the rare cards.

Economic Parallels in Gaming

  • Speculation Bubble: Richard Garfield describes the initial prices of rare cards as akin to financial market bubbles.
  • Central Bank Analogy: Wizards of the Coast, the game’s publisher, sometimes acted like a central bank by adjusting card supply to stabilize prices and encourage gameplay.

Gameplay vs. Collectibility

  • Gameplay Integrity: Garfield emphasizes that the gameplay experience should not be compromised by the economics of card collectibility. He expresses skepticism towards companies focused solely on maximizing card value.
  • Player Accessibility: The conversation highlighted the importance of making the game accessible to new players without requiring them to invest heavily in rare cards.

Historical Insights

  • Ante Rules: Initially, players could wager cards on the outcome of games, which was phased out due to the negative feedback about losing valuable cards.
  • Banning Cards for Fair Play: The banning of specific powerful cards (e.g., *Black Lotus*) in tournament play was a strategic decision to maintain a level playing field.

Lessons Applied to Chaos Agents

  • New Game Overview: *Chaos Agents* seeks to innovate by ensuring each player's deck is unique and emphasizing gameplay over economic speculation.
  • Focus on Fun: Arka Ray stresses the goal of enabling players to find joy in gameplay without the pressure of competitive economics.

Future of Gaming

  • Innovative Approaches: The creators envision a game architecture that empowers players, allowing for varied experiences without the need for extensive collectible investments.
  • Game Design Philosophy: Emphasis is placed on creating engaging gameplay experiences that foster community and enjoyment rather than focusing on profit maximization.

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Key Takeaways

  • The success and sustainability of *Magic: The Gathering* were largely due to maintaining a balance between collectibility and gameplay.
  • The creators aim to replicate and enhance this balance in *Chaos Agents* by focusing on unique player experiences and gameplay innovations.
  • The conversation highlighted the importance of engaging new players and retaining existing ones through accessible game mechanics and community-building strategies.

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Recommendations

  • For listeners interested in exploring games that emphasize cooperative gameplay and creativity, Richard Garfield recommends:
  • Hanabi: A cooperative card game.
  • Vampire Survivors: An auto-battler worth checking out.
  • The Case of the Golden Idol: An indie mystery game.

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Conclusion The episode invites reflections on the intersection of gaming and economics, urging a return to the core principles of fun and community in game design. The insights from Richard Garfield and Arka Ray provide valuable lessons for both game developers and players alike.

For more content, visit [Bloomberg's Odd Lots](https://www.bloomberg.com/odd-lots) for transcripts, blogs, and a newsletter that comes out every Friday.

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Transcript

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1:44Hello and welcome to another episode of the Odd Lots podcast. I'm Tracy Alloway. And I'm Joe Weisenthal. Joe, did you ever play Magic the Gathering? No. Really? I've never played it. the only game I know, I spent some time playing chess. Of course. Yeah, as we've talked about on the show before. And then outside of that, it's like I never had the capacity in my life to like really learn new games. So it's like, you know what? I'm going to play chess, try to get better at it, play on my phone. But I've never like then, it's like, oh, I want to play some other game. Man, you need to branch out. I know.

2:21Well - I just don't want to start, you know what the thing is? I don't want to start from the beginning. I'm just like, I'm like too old for that. That's how you learn new things. Okay. Well, speaking of being old, I spent countless hours in middle school playing Magic the Gathering. It was a huge thing in, let's see, this would have been around 94, 95. And almost everyone I knew at the time was playing it. Where were you living in 95? I was in Chicago. Chicago. So that's partly why. And every recess was taken up with Magic the Gathering tournaments. And I really enjoyed playing. But for me, the collectability of the cards was probably more interesting.

3:06I was obsessed with the cards. One of my best friend's younger brother was really obsessed with the cards. And the game was like, oh, I got the wall of brambles or whatever it is. The wall of brambles. Is that a card? No. That's not? I don't think so. Although it sounds like it could be, to be fair. I remember I had - No, it is. Is it? There's a card called Wall of Brambles, I think. Anyway, I just remember that, you know, I think it's, oh, look, you can buy one for 20 cents. So I guess it wasn't a very valuable card. Anyway, I was like around people who were really into their cards. I was magic adjacent.

3:39I have had friends who play it. I didn't realize up until you played, I was like, sometimes when I would go like to like the bookstore and play chess or the game store, there would be other people playing. So I was around the game. But I just never played it myself. Man, I spent so much time. I had so many cards. I had valuable cards. I had a Siobhan Dragon at one point. And I really... Thanks, Joe. Wow. Thanks for your feigned enthusiasm. Wow. Okay. But this brings me to a serious Odd Lots-esque topic, which is Magic the Gathering is really interesting, not just because it was one of the, possibly the most successful card game of all time, but it had a lot of sort of economic aspects to it.

4:25So there was the card collection and then you can imagine within the card collection aspect of it, obviously the goal is to play and win the game. But then you had this whole sort of market spring up around these super valuable cards and there was a big discussion about whether or not the value of the cards was actually making the gameplay worse. Hmm. Yeah. So this I'm familiar with and I, you know, intuitively you could sort of like get this phenomenon, right? Because a card can be useful in the game, but a card could also just be like a valuable thing that people buy and sell on eBay or Magic the Gathering online exchange, things like that.

5:07But then the question is, do they align? Does the collection of the cards lead to optimal gameplay, suboptimal gameplay, etc.? You could see how the value of a card from a monetary standpoint and the value of a card from a gameplay standpoint might be linear related, but might not be perfectly aligned. Right. And the other interesting thing is Wizards of the Coast, the company that actually made Magic. At various times, they tried to fix this problem. So they almost acted like a central bank of the cards in terms of issuance. Like they would increase the supply of cards or decrease the supply of rare cards as needed to make the game more interesting.

5:47So that's kind of fun, too. But anyway, I could go on about Magic for many hours still. But I am very, very excited to say that today we're going to be speaking with the creator of Magic the Gathering. We have Richard Garfield on the line all the way from Sydney, Australia. And we also have his colleague, Arka Ray, the president and technical director of Popularium, which is the new gaming company that he's setting up with Richard. So very excited to have them both on the show. Richard and Arka, thank you so much for joining our thoughts. Well, hello. It's a pleasure to be here. Love talking about games.

6:27All right. Thank you both. Really appreciate you having us here. We're really excited to be here. I hope my slightly sarcastic tone to Tracy was not in any way coming off as dismissive towards the game. No, it was actually... Mocking her just a little bit. Mocking me is okay. Mocking Tracy, but I want to make it clear that I have no condescension whatsoever to the game. So I feel bad about that already. I think you set up a lot of great stuff. for us to get into with Richard. So let's do it. Yeah, I wanted to say that back in the 90s, I thought that playing one game like chess was like reading one book or watching one movie.

7:12But I very quickly got past that because I realized games have this really special thing where the more you play them for a lot of games, the better they get. And so there's something which doesn't really line up with a lot of the other media. So I think that is a perfectly good way to be. Well, that is a very good observation. Maybe I should play more games. Joe over here just reading one book all his life has had. So Richard, maybe just to begin with, you know, I use the sort of economics framing to describe some aspects of magic, but do you think that that's like the right way of thinking about it as a sort of ecosystem or market of cards?

8:00Yes. I think it's the most important thing with a game like Magic is the economics around the cards. And it doesn't take much to shift the game from being something which isn't primarily a game, but is more an economic tool. And that is, in fact, you mentioned that Wizards acted like a central bank uh it was very much the case back in uh in the 90s maybe 95 uh where the game the price of the game was so out of control uh there was the speculation bubble um and and there was a conflict within the company um a lot of people thought this was amazing because who doesn't want their product to hit the hit the shelves and immediately be worth you know three times as much but from the people who were actually making the game like me it was uh terrifying because it if you can't afford the game you can't play it if you can't play it then it's not really a game so we very uh intentionally overprinted uh the set fallen empires and and the market crashed hard and people said that was the end of the game and uh on the other uh but as it worked out play sprang up because at its root, it's a game.

9:28It's a strong game and the community loved the game and then it flourished. So ever since then, I've been really skeptical of games and game companies which are intentionally trying to keep the prices of their cards or components high. You know, one thing, and I definitely, I don't know if we want to even go down this road. I mean, I certainly had that thought like in 2021 when they were trying to do like NFT related games. It's like, well, is the point to play the game or is the point to think it didn't seem like any of those games were fun. Something I'm curious, though, in 1995, we didn't, you know, eBay, I don't think it really existed.

10:17Did it exist by 95? Barely. I mean, if it did, it barely did. Hardly anyone was using it. How at Wizards of the Coast were you able to get like real time or semi real time feedback on price to find that optimal equilibrium between the value of the cards and the amount of games? play there was i'm not sure what tools were being used but i know we had data um and uh and in fact the data was i i'm not sure about ebay it might have been ebay but uh the data was so clear that i know at least one uh doctoral thesis that was uh um put together using data from um magic the gathering. And the idea there was that the person who did it, the one I know of was Dave Riley, he found it as a perfect tool to test different auctions to see how that affected the final prices of the sales.

11:19That's super interesting. So, Richard, one of the things that was sort of built into the game, at least initially, was the idea of actually playing for ante. So if you lost, you would have to give up a card from your deck to your opponent. And it was sort of one way of actually building up your decks and, you know, becoming an even better player. How come you built that aspect of it into the game? When we began the game, I did not anticipate it being the success it was. And in fact, I expected players to buy one to four decks maybe. And so I wanted to make sure that there was some method for there to be variety in what players had, even if they stopped buying cards.

12:15Now, of course, they can trade and I expected that to be a part of the game, but I also knew that there were people uncomfortable with trading. So I thought that ante would be a good way to get that circulation of cards, and it also acted as something of a leveler between decks. If you've got a very valuable deck, then you're going to be anteing more valuable cards. This idea, there were some dedicated advocates of it. It was a very exciting way to play, but it was pretty clear very early on that we were going to have to drop it because so many people hated losing the cards. And so I imagine by the second expansion, there were no more anti-cards and it was phased out.

13:01Joe, one of my greatest triumphs as an 11-year-old was I won a signed card in Magic the Gathering. It was signed by the artist. And the person I won it from was very upset because we didn't, you know, we were all 10 or 11-year-old kids at the time. We didn't have a lot of signed cards circulating among us. Can I say, I did not realize that the card loss, I sort of assumed that still existed, that you could lose your card. It shows you how much that I knew about Magic. For some reason, I thought maybe that was still part of it. But I could see, that would seem really stressful, and I would not want to collect a deck, or I would not want to be a parent buying decks for my kids, my 13-year-old kids, and then having them lose them.

13:46during lunch at the game. So I could see why that wasn't a particularly stable thing. I want to interject there on that, though, that like today it would be completely a non-starter. And one of the things was that when it was published, we didn't see them as being valuable in the way they are today. Very quickly, there was a price set on them. And so once there's a price set on them, they actually are gambling when they play for Antic. Yeah, which could be fun, and gambling is fine, but I don't know if you want kids gambling, I guess. Yeah, and back when it was playtest cards and when they were first out, when I was picturing them just being treated as these sort of components you might have sentimental value to, it was different.

14:35But once they become cash, yeah, it's not really an acceptable thing to bake into your game.

15:04We'll see you next time.

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16:35Crypto trading provided by XeroHash. Complete disclosures available at public.com slash disclosures. so just to sort of get the narrative right can you just give the quick overview of how long were you involved you're the creator of magic the gathering uh wizards of the coast it existed as a game publishing company prior to uh you linking up with them i think and then obviously it took off how long were you sort of involved with the business of uh magic i was with wizards until until about 2001. So that was about eight years. I mean, I guess maybe 10 years if you go back before Magic was published, since technically, I guess, I was working for them then.

17:20But yeah, when Hasbro bought Wizards, I was around for a little while, but then went off on my own. So Richard, just going back to the very beginning when you actually came up with the game, I think I read somewhere that you're a mathematician or you studied mathematics at university. Did that influence the way the game was designed at all? I was actually teaching math at the college level, and it probably did influence the design of magic. But I always like to point out that when you're a game designer, sort of all subjects are grist for the mill, just like being an author. So if you had an economics PhD or studied literature or anything, it will affect what you write about and it'll affect what sort of games you make.

18:14And Arka, I want to bring you in as well, because of course, you are now working with Richard at the new gaming company, Popularium. Did you play Magic when you were younger? Yes, yes, I did. And I grew up in India. And it was a very insulated community when it came to games. People cared about cricket, and that was pretty much it. so I had some cousins over here in the U.S. who would come by and introduce me to you know cool things that they were doing and obviously magic was a big thing so one summer they came over and this was I think yeah 94 95 something like that they came to visit and they had these cards that they were playing and you know I was I was someone who basically when I was five six years old, I would take, you know, I would make my own versions of Monopoly and things like that.

19:12So making games was something that was, so when I saw the cards, it was just like, you know, this, this world of wonder that just exploded. And obviously I only had a handful of cards. So there's only so much I could do, but I remember trying to teach everyone I could, um, how to, how to play the game. So it, uh, you know, just seeing his name on those cards and, you know, So being here now with him, it's quite a bunch of... When did you know you wanted to make a career in gaming? I mean, I imagine... It's funny you said that. My daughter is really... She's seven. She's really getting into Monopoly right now.

19:48It's the first game that she's really into, and that's really exciting, and she's starting to develop strategy, et cetera. When, in your mind, did it go from, okay, you love playing games, the cards were sort of fascinating to you to thinking, oh, this could be a career of building gameplay of various sorts. Yeah. And it sounds cheesy, but it actually was around the time I was 11. I switched schools because I switched cities that my parents were living in. And it was the first time I was exposed to a computer and programming. And as soon as I was like basic or something like that was the language.

20:27And as soon as I got one, I started writing this quiz game. And that's all I would do when I was on lunch breaks and things like that. And then obviously I discovered actual games and got a computer at home and played Doom and things like that. And then people would ask me, okay, what do you want to do when you grow up? I'm like, oh, I want to make video games. And often people are like, wait, what are video games? So that's kind of like why I immigrated to the US. I came here to study computer science specifically because I wanted to learn how to build games and then was fortunate enough to join Xbox in the early days of Xbox 360.

21:05And that was the winding path that took me to meet Richard and Scaf, who is Richard's game design partner back in 2011, 2012, when I was starting my first company. And here we are, 10 years later. I definitely want to get into the new game that you're launching with Richard and how it's sort of maybe similar and also different to Magic the Gathering. But before we do, I just have a few more questions about magic. Just humor me and let me relive my childhood. Tracy, if I were interviewing the creator of chess, I would have a thousand questions. So you go to town. So Richard, you know, you described that analogy of Wizards of the Coast sort of acting as the central bank and deciding at one point to flood the market with new cards in order to bring down prices in the secondary market and make it more equitable so that everyone could have fun playing the game.

22:02Can you talk a little bit more about what that decision was actually like? You know, you're in the room at Wizards of the Coast. What are those conversations that are happening at that time? Wow. Well, there were a lot of people involved with magic and sort of on the sidelines of magic who saw it as a fad. And they saw it like, you know, I don't know what fads are. Cabbage Patch Kids. Beanie babies. Beanie babies, there you go. And baseball cards. And that when you had a speculation bubble, it was going to crash. And that was the best you could do was ride that out.

22:47And I thought, and we in R &D thought that that was not going to be healthy for the game. And we had some faith in the game in the sense that we had been playing with the first set of cards for over two years. And the playtesters were just hooked on it. They loved it. And so if it crashes and goes away, that won't be shared with anybody. There won't be any long term to the game. and so within Wizards there were lots of very heated arguments that you know that if you overprint it some people believed it was going to crash and then we were you know basically the game was done and other people who thought if you overprint it and it crashes that'll give players an opportunity to actually play the game.

23:40And since I was a committed crasher, and the president of the company, Peter Adkisson, took my advice seriously, he was a committed crasher, and so we went through with that. And it really, the reputation that the set which crashed at Fallen Empires got was uh uh very bad i mean it looked you know people people hated it they hated the set um and uh um but it wasn't about how it actually played it was about the fact that it was cheap it was uh they could they could buy it remaindered but you know the the the number of players just exploded after that um and uh and and we we began to reformulate how we printed the cards to make it so that anybody who joined the game wouldn't have to pay secondary prices secondary market prices that were substantially above buy from the company well so i understand the sort of and i like the way you put it you're a committed crasher.

24:54You want people to play the game, you want low prices, and I think that's awesome, or it sounds really cool. But it still seems that even within the committed crasher philosophy, the challenge may not be, okay, you want to have the cards cheap so everyone can play them, but you still need to get the proportions right in terms of you can't make, there still has to be some variability between the really powerful cards can't be printed as much as the less powerful cards. There has to be some rarity. How do you calibrate that aspect of it such that you get the proportion of powerful to less powerful cards right even within the crash mentality, the crash framework?

25:35So there's a misapprehension there that's underlying your question, which is I was also from the start a big advocate of not making the rare cards more powerful. now there were more powerful rare cards but but um if you make the common cards very broadly powerful generally useful easy to use then people who buy not too many decks uh have less of a disadvantage against somebody who gets a lot of decks and so this was early on one of the ideas i had lots of ideas some of them worked like this and some of them didn't like ante um but uh This approach makes it so that your power goes up logarithmically as you purchase decks at the beginning rather than linearly.

26:30I see. And so now the value of the cards, that's something different. It does have something to do with the power of the cards, and there were powerful rare cards. I certainly wouldn't deny that. But one of the things that I enjoyed doing when Magic first came out is going to game stores across the country and playing against players. Gunslinging, we called it. I think that became a term we stopped using. and I would play against them with a deck of all common cards and my record against the champs of the stores was 80 % or something like that and people would bring out their decks with their black lotuses and their vampires I've heard of that one, yeah their shivin dragons and I would clean their clocks and it would be all top to bottom common cards and it's just because I've been playing many years longer than them and was a better player and recognized the power that was there in the common cards.

27:34Now, the best decks, of course, are going to be a mixture. But you look at the top decks even played today, and there will be a good chunk of common cards that are being played by all the players. I guess I just sort of assumed, Tracy, that there must have been some relationship between like, oh, if you have these really valuable cards, they must be overwhelmingly powerful. So I did not realize that. Also, it's just sort of funny to imagine, you know, the ultimate creator of the game popping into the local D &D board game store in whatever town and cleaning all the local's cloth. Right. Some guy who spent countless hours, you know, building a deck of really valuable cards, suddenly losing to someone who's playing with some really common ones.

28:19But just on this note, Richard, you mentioned the Black Lotus card, which, of course, is probably the most famous card in all of Magic history. And I looked up on one website before we had this conversation. And I think the pricing for like the most rare version of the Black Lotus was something like$22 ,000. I have no idea if that's accurate or not. It seems slightly inflated. But are you... Wait, I see half a million. Really? Wow. Yeah. Yeah. I think$22 ,000 is... I saw an article about a proxy Black Lotus. That is one that the players made selling for some incredible amount, like$20 ,000. But the actual one is closer to half a million.

29:04Is that right? Maybe I was looking at the wrong version. Yeah, 540 ,000. I could be wrong. I don't have access to my internet. March 28, 2023 in Auction House, 615 ,000 for a Black Lotus. Okay, well, this gets to my question. are you surprised at the secondary market values for some of these cards nowadays? And especially because this kind of gets to the other thing that you did in order to make gameplay more interesting and more fair is I think at one point for the pro league, and yes, Joe, there is a pro magic league, you banned the use of certain cards, like I think Black Lotus, like the really powerful cards you couldn't play with anymore.

29:50So I guess my question is, why do they still have or seem to have so much value in the secondary market if they're not allowed in some of the games? That is one of the most important tools we used for making the game accessible to players coming into it. That is, not making it so they felt like they had to buy a Black Lotus. The tournaments and the environment which Wizards supports is only the last couple years worth of cards. And so if they're beyond that, players can still play them, of course, because they own them, and there will still be events set up around them, but that's not where the focus of the company's tournaments and play is, which means if you come into the game, you know that you're not competing against Black Lotuses and all the old cards.

30:43And so it wasn't just Black Lotus that was banned. It was basically any card that was too old became, I forget what they call it, but I don't know, a legacy card. And there were special legacy events, but that wasn't part of the current game environment. And that was one way we managed to keep it so that the card prices were under control, and yet you have this long-term collectability. So it was collectible like stamps, but not like Beanie Babies. Yeah, I didn't realize that the older cards were banned in pro play. I guess I probably didn't play Magic long enough for that to kind of be an issue, but that's interesting.

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31:27Well, to clarify, there are like two formats. There's like standard and the other one. The standard is the rotation that Richard is talking about. You can play anything that's modern, which is like, I think after 2000 something, it's considered modern in like non-pro tournaments and so on. But there is also a banned list, which Richard might want to talk about, which Black Lotus and cards are on, which will never be reprinted, which does contribute to a great extent to the incredible value of something like a Black Lotus. because there's a possibility for a legacy card, as Richard said, to be potentially reprinted, and it's considered exactly the same card as far as gameplay is concerned.

32:06But there will never be another Black Lotus printed because of many interesting reasons, which I don't know if you have time or Richard wants to go into. I'm curious. Yeah, it's actually worth pointing out. It's a very sticky relationship between the power of the card, how many have been printed, and whether it's available, whether it's in tournaments. So, for example, very early on we realized that when we reprinted an old card, which had some cachet to it, the price on the secondary market of that card would go up. And the reason for that is because that meant the card was legal for tournaments because it wasn't an old card anymore.

32:52You could bring your older version, which might have different art or a different cardboard or something like that. But it seemed contradictory that you're printing more of them and now the price goes up. Arka, I have to ask now, what was your, I don't want to say most valuable card because it kind of undermines a lot of the purpose of the game. But what was your favorite card that you accumulated when you were playing? The time that I was playing Magic probably the most was when I was at Microsoft, just because, you know, that was one of the things that we did. And at the time, I got really into black, like all sorts of combinations of black.

33:31So I got into black, white, black, red, etc. So there was one card that I think was a gold card that was printed in like M11 or something like that. that was called the dark tutelage and uh that just had uh the most the coolest art on it if if if you want to look it up um of this guy with the blindfold uh guys with this blindfold and eyeballs and this like demon looking character like it was just uh oh that is cool yeah it's a it's a really fun like you know like it combos really well with red red cards also um so i just i just really enjoyed the mechanic, both the life gain and life loss mechanic as resources.

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35:39Need AI to turn 100 pages of market research into five insights with a click? Do that with Acrobat. Need templates for a sales proposal that'll close that deal? Do that with Acrobat. Need an AI specialist to tailor the tone of your market report to sound real smart in real time? Do that with the all-new Adobe Acrobat Studio. Learn more at adobe.com slash do that with Acrobat. I have an embarrassing confession, which is I was scared of the black cards when I was growing up. I never played with them because some of the images of like... So the black cards for people who don't know are sort of associated with like death and scary things.

36:20And, you know, there's lots of demons and pictures of skeletons and things like that. And they freaked me out when I was little. I was scared of them. Okay. Can we talk a little bit about the new company? And maybe, Arka, why don't you describe what is Popularium? And in the world of gaming, what are you trying to solve? What do you want to do that isn't being done elsewhere in the gaming world? That's a great question. And, you know, I think it's best answered a little bit through the story of how actually we started Popularium. Great. because yeah I mean on one hand I've been dreaming of you know starting a games company since I was a kid but you know how things go like I started my company and you know I'm a technical person so I got into building enterprise software for a while and that was all fun and all that in a different way but always want to come back to games and I had an opportunity a couple years ago because of a combination of events with my prior company and you know some availability of some some financing COVID giving people the opportunity to like basically become much more comfortable with completely distributed development systems because you know games especially has been a very you know you go in you build games you know and the whole like you know classic crunch change mentality that you're sleeping under your desk before you ship.

37:49So all of those things was like, you know, for me was the right time to start thinking about putting something together. And it was really accelerated by two things. First was that for me, what has always been very interesting is our games that essentially through gameplay, create a new format. And then B, um generate narratives out of the pure gameplay itself and something that richard's games have always done is basically whether or not you understand the lore of the magic universe let's say or netrunner or whatever it might be when you're playing the game the game is creating a narrative for you that duel that you're having with summoning the specific creatures the counters you know the stack it's it's like if you know actually someone should do it if they haven't is you can actually take the output of a magic game and maybe like actually train a generative AI like an LLM or something like that to actually output a wonderful narrative of like you know what was the battle and that you know is created purely through gameplay and for me we really hadn't explored that that fully in a digital format the power of that fully in a digital format And when I started talking to Richard in 2021, late 2021, about some of these ideas, Richard and Scaf, you know, and Richard can tell you about Scaf, who's just an awesome person, you know, in his own right.

39:23Right. My goal was that, OK, what can I do to create a playground for you guys where you can take the ideas that you've been cooking for a long time? And the thing that Richard and I and Scaf resonated on pretty much right away, and we have known each other for a while. So we've kind of talked about this over time, was the idea of empowering gamers to pursue their fun their way, while also leaning into gameplay innovation. Because I think that one of the things that doesn't really hold gaming innovation back, but definitely slows it down, is once something works for a certain group of people, a bunch of money goes into building facsimiles of that because you know that people are going to have fun in a certain way.

40:18and what's amazing another amazing thing about Richard's work is that exactly what I was talking about earlier with that whole like black approach and you know with with basically uh you saying crazy that that that you know you were not really into the black decks at all and I can't imagine no no I'm completely with you like you know some of the they are genuinely not like pleasant things to look at but I can't imagine playing magic without you know black cards but there's an entire like gamut of folks such as yourself who you know that's not so that is what's so cool about so how do we lean into innovation while also empowering gamers to pursue the joy of gaming the fun of gaming in the way that they want without feeling like oh you know I'm not good enough or my fun is not fun enough unless I'm winning all the time and that was my philosophy and you know what I wanted to lean into and obviously we've seen over and over again and you know while I I was at Microsoft, we built Xbox Live pretty much from the ground up.

41:15So I've seen how hard it is to keep toxicity out of communities. And one of the ways that you can actually do that is if from the germination of your game, you are letting people genuinely lean into fun and telling them, you know what, no matter how you want to have fun, it's okay. We will accommodate and so on. And then what Richard kind of had in mind was actually something that he had been thinking about and working on for 20 plus years. And maybe Richard, I want to maybe ask you to talk a little bit about how things came together before we actually put the company together. Yeah, so this concept that I've been working on for 20 plus years was something that had been gnawing at me ever since Magic came out, which was that the way its popularity in some ways undercut one of the things which I really loved about the game.

42:09and that was that when you first play Magic, even today when you first play Magic, but originally very much so, it was a game filled with sort of endless possibilities and treasures and your deck was distinct. It was yours and your friends' decks were distinct as well. You had the sense that the world was infinite, but then when you start playing more and begin to play tournaments, the emphasis of the game is on constructed decks. That is, you choose which cards you want to play, and you play them, and they're readily available, so they become more like commodities. And this is not the way we played originally.

42:57It's a fun way to play, so I don't mean to take away anything from players who love that way of playing, and there are plenty. but when we first played we played with this very limited pool and it was uh exciting in sort of this different way and so um the way i uh came up with to to recreate that was to make it so that players decks were unique so that is when uh when you get a deck it's your deck and you can trade the deck but you can't break it up and so i wanted the back of the cards to be unique um and uh and it took a while for printing technology to catch up with that um yeah but but keyforge uh was was the first unique deck game and every deck in that game is unique and has its own unique name and the resulting play was so interesting and the audience for it was so sort of thirsty for this sort of gameplay that didn't involve making decks and collecting cards that I began to think about how to apply those ideas to other games.

44:15In particular, you would think that even though printing technology took so long to catch up to this concept that digitally it shouldn't be that hard to do and when i was talking with uh arca um he was uh uh asking what what he could do to bring some of our ideas to life and i was just coming off of uh uh dealing with many different companies who wanted games but they were all very concerned with how limited they make it so the cards were immediately valuable they were talking about like play to earn money and and uh and and uh putting out a certain limited number so that people's initial investments go up and so they were approaching the games entirely as sort of this uh this well what we began with this economic uh um they were building it on this foundation of of economics rather than on the foundation of gameplay.

45:13So ARCA was very interested in supporting this idea of building the game on a foundation of gameplay and deal with the economics as sort of a secondary thing, which is there to sort of maximize the enjoyment of the game to the player rather than return on investment for the player. Tracy, this reminds me, by the way, there is a sort of corollary in the chess world, which is, you know, you think of chess as a game, but so much, and it is, but so much of modern chess is just sort of rote memorization of the first 15, 20 moves. And so there's this other version of chess that I think Bobby Fisher came up with, Fisher Random Chess, in which you don't know in advance the order of the pieces that are going to be.

46:01So it's gameplay from the beginning. There's like numerous ways that the pieces can be ordered on your back rank so it's gameplay from the beginning oh i see so you don't have like the queen in the middle yeah and so what it does is you have to figure out the game right away rather than you have 25 lines committed to memory that seems much more interesting yeah it's it theoretically i think it's a better game the pros don't really play it but i do think it's widely considered to be more interesting gameplay but you know but you know what's interesting is if you i mean i'm I'm sure you've seen this and, and Scaf and Richard will tell you all about this also.

46:39But if you look at, you know, folks like Carlson, what they try to do in their games is basically try to move to a position as quickly as possible. That has not been seen. It's novelty. Yeah. Yeah. That's, that is exactly the analogy. I'm glad you picked that up. That's exactly the analogy that, you know, what Richard explained is that like the idea of going in with, okay, you know, the cards, you know, the specifics of the units of power, But the combination, the engine that that builds with the deck is not something that you've ever seen before. And that you have to figure out in real time. And that is what's, you know, interesting about it.

47:13So Richard just touched on this idea of pay to play and, you know, the fact that there are games out there that kind of focus on building up the value of existing assets or cards. And maybe this is one for both Arca and Richard, but how do you resist that temptation? Like, how do you actually monetize the game? Because I imagine in the gaming industry, the temptation now is to wring as much money as possible out of players. And it does seem like some of these are, you know, expensive to run, expensive to design, expensive to produce. So how do you manage to do it where others are focused very much on the revenue opportunities?

47:58This goes back to the question, Tracy, that Joe asked earlier, which is one of the fundamental philosophies that we have behind doing this company. Because Richard, myself, John, Scaffi, we all have done things in the past where, you know, at this point of time, we want to build something that brings us, you know, true joy and satisfaction. And one of the things that we all very much agree upon is that if you bring people true joy and true fun through gameplay, that translates to economics in a much more scalable way than if you try to build gameplay experiences that are optimized for economics.

48:38and you see this happening intentionally and unintentionally. You don't have to just look at like recent examples. Like if you go back and look at World of Warcraft and the amount of gold farming, that was completely not legal, but it used to happen all around the world and the amount of value that was created and transacted. Why? Because people wanted to use that utility within the game. And magic, that is just an example, is an amazing, glorious example of that phenomenon that has just lasted for decades at this point, which is if you create that interactivity and, you know, I don't mind saying this, one of the geniuses of magic is this idea of massively modular gameplay.

49:25That is a term that I know Richard likes, of being able to let people construct the pieces to build their piece of the game in a way that is very flexible. If those two things come together, then the repeatability comes naturally. And I think that a lot of folks who try to essentially start with the economics, start with the business model, and then retrofit the gameplay probably do themselves and their gamers a disservice. Anyway, that's something that, you know, very passionate on my part. I don't know, Richard, if you had any thoughts on that. Yeah, I would like to add to that. But so there's been many games I've put out, and this one we're working on is part of this, where there's some question as to how much value you give to the player who just dips their toe in.

50:19And my philosophy on it is if you have faith in the game, you give them lots of play value. that's why the common cards were powerful in magic and that's why uh in key forge uh you get your single deck uh has many different avenues that you can play with uh so it is not something where you play with it and immediately get bored there's many different things you can do with it Now, the cynical would say, well, that is limiting your audience because people are going to buy one deck. That hasn't been my experience because this massive modularity gives a world of variation which people want to explore, but it gives the opportunity for people to get involved with a very modest investment.

51:13And so that's something we're talking about with our game. And I want to see that a player with a single character can get an amazing amount of value from that and not feel particularly limited by that. And that is with this faith that some players will stop there and that'll be right for them, but other players will want to get different variations. When does the new game Chaos Agents actually come out? It's a great question. So basically, you know, just to bring home the question from earlier, Richard sort of gave me this one pager. This was end of 21, early 22 called Maelstrom that he had written up around this idea of basically what would it be if the deck of cards, each card represented a unique skill that together, skill or ability that together made up this globally unique superhero.

52:20So the idea would be to have this entire large, you know, 60 plus heroes battling each other. And each hero would be controlled by this kind of unique invisible deck of cards in the background. And one of the things that Richard was sort of really into at the time was this idea of auto battlers, which is another very interesting genre of games that I'm sure Richard can talk about for a long time. but this idea of auto battlers would would basically be that you know unlike games where you need a lot of input a lot of uh reflexes or twitch um an auto battler lets you sort of make some decisions sort of like almost like a football an american football coach make some decisions call the play and then see what happens and then adapt and call the next play so there's this lean forward lean back experience so richard was like what if he blended these two things and i was like that sounds amazing cool i want to play an auto battler game you should it is it Branch out, experience something new.

53:18It is. And that's obviously like for people like me who have like not played competitively for like 10 plus years. That's the only way that, you know, I can play something like that. But what was super cool is that then, you know, when we hear Richard Garfield, we think card games. And my idea was that, okay, we're going to build something like Hearthstone, but in a big way. And, you know, my really good friend, John Bankert from Xbox was actually running the Hearthstone product team. And so to my great joy, he was like, yeah, you know what? Richard's on, auto battlers, I love them. Let's jump on.

53:50But then what happened was when Richard and Scaf came back with the detailed design document, it turned out that it was not just a card game. It was actually a full-fledged battle royale where instead of you controlling your character, your character is this AI-controlled bot that you're essentially coaching and giving good advice to, so to speak. That's cool. And that took it to a completely different technical level. But that's kind of what we've been building for the past year and a half, almost two years. So to answer Tracy's question, the reason why we're kind of like talking about all this right now is we just launched what we're calling our tree alpha.

54:28So we are not necessarily like letting everyone through the door, but basically we're letting a ton of folks through the door to come and experience sort of the first version of the game, give us feedback. and we are hoping to get into alpha around the late spring. So around late Q1, early Q2 timeframe when the public, more members of the public can start experiencing. So that's kind of like the early access timeframe that we're looking at. And then we're going to be in beta by the end of next year. That's kind of like when we'll be in public. But the reason why we wanted to talk to Magic fans, especially is because that's whom we are prioritizing is because even you, Tracy, if you play Chaos Agents at this stage, you'll be like, oh, I see how this takes some of the core concepts of a Richard Garfield game and just translate this, translate it to something that can only happen in a digital format.

55:18And that was sort of our fundamental goal. So sorry, that was a much longer answer than your question, but you know. No, that's very cool. And I am excited to play this game. We just have time for one more question. And this one comes from our producer, Carmen, although I think it's actually for Joe's benefit so that he can branch out into some new things. But other than magic and chaos agents, what games do you like to play? What are your favorites? Wow. Well, as I said at the beginning, I think there is some merit to really getting good at a game and playing it again and again. And that goes against my curiosity of games.

56:01And so I have this tension between wanting to play everything that comes to the market and trying to discipline myself to return to my favorites and play them again and again. But so some of the games which I return to again and again are Hanabi. That's my favorite cooperative game. And I am actually playing a bunch of fairy chess right now, which is chess variations. and I play Lost Cities, one of my favorite two-player games, but lots of classic games like Chassin and Jhin and Bridge. Hanabi looks cool. Yeah, I was just thinking about it. It looks like a fun game. Maybe I'll play it with my family.

56:54It's a wonderful game, and I can vouch for the fact that Richard plays a lot of games. And Tommy and I were talking about this at the top of the hour. Richard is it plays like and that is actually amazing because like for me you know I I would I would love to play that much but you know I kind of play vicariously through Richard because he comes back and tells me oh you know what you should check that one out and that's you know I have three recommendations of different sort of um fidelities let's put it that way one that you know anyone who's interested in an auto battler should check out vampire survivors that was one of the first games that Richard uh recommended to me and it has really blown up since then so So a lot of folks in the gaming community know about it, but it's just a fantastic game.

57:32It's just so simple, but so, so deep. The other one that I highly recommend, it's a completely different type of game, but I'm sure it doesn't get that much coverage. But it's been something that has been a great game for me and my family to play together. It's called The Case of the Golden Idol, which is this little indie game that essentially gets you to solve this mystery set in the fictional 19th century. Oh, that looks like so much fun. Oh, wow. It is just so cool. You know, like, I don't want to give away anything. It's one of those games that you should just go in blind, but it doesn't take, you can probably beat the whole game in less than five hours.

58:09And it's just such a fun experience. So always, always fun to support indie developers. And, you know, for anyone who's not heard yet, I mean, I highly recommend Alan Wake 2. It's just, it is just so cool to see that kind of innovation in AAA gaming. And this has just been an amazing year for gaming overall, just in the quality of games. But something like Alan Wake 2 is just like shows us the next bound, the next kind of like boundary that we are hitting in the blending of like passive entertainment, interactive entertainment, because, you know, no one can look at Alan Wake 2. Like, you know, there's just stuff you can go and watch, you know, people, Let's Play and things like that.

58:48No one can look at that and deny that it's, you know, art. So I think at this point of time, we've, you know, crossed that Roger T. Wood threshold where, you know, gaming is undeniably getting into that category. So it's exciting to see where things go. Sorry, add to that list my favorite auto battler since that's where we're working now, which is Hearthstone Battlegrounds. I think it's really added a lot of innovation to the auto battler category. Well, Arka and Richard, I think you're both going to be responsible for a massive dip in OddLot's productivity as we go off and experiment with all these new recommendations.

59:23And of course, Chaos Agents as well. Thank you so much. That was so great. I'm going to order Hanabi right now on my phone. So I get it. I'm going to play more games. Even though I, even though I appreciate Richard, your endorsement of the single game approach, I think you've actually inspired me to maybe start playing more games. Well, one is a little bit narrow. All right, Richard and Arca, thank you so much. That was fantastic. Thank you for, for allowing me to reminisce and be all nostalgic about magic, the gathering and the middle school experience. Thank you both for having us so much. It was so fun spending this hour.

59:59Thank you. It's always fun to talk about games. It could go on forever.

1:00:12Joe, you're inspired now? Yeah, I am. I'm inspired. I love that conversation. I'm going to play more games, maybe. You know what I was thinking as we were talking about Magic the Gathering and Richard's purposeful avoidance of building a sort of ecosystem that was all about the economics and the value of the game? I was thinking about Axie Infinity and how it was kind of like the polar opposite. Exactly. Right. I had the exact same thought, which is that no one could actually explain how that was a fun game. No one even really tried to make the argument that the gameplay was fun. It was clearly all about the value of the various NFTs in the game.

1:00:56It felt like there are two levels to this. So there's the first level, which is that it's not a fun game if you have to spend a ton of money on rare cards, et cetera, and people just get obsessed with collecting valuable cards. That is negative for gameplay. So he talked about he was a pro crash price. And then there's the other element, which I thought was really interesting, which is that it also ceases to be less fun if the game becomes more and more about deck construction, what happens before two people sit down in front of each other and less about the gameplay that occurs when the two people are there.

1:01:32And so, you know, just this idea of continuing to pursue fun, active, creative, of improvisational gameplay and how to avoid these other traps where other factors start to overwhelm that I thought was really interesting. Well, also Arca's points about the pay to play model and the idea that like you can build a very popular game by purposefully resisting some of that temptation. And I think if you look at something like magic, the proof is kind of in the pudding right like people are still playing this game it's made a ton of money for wizards of the coast i remember again in middle school like there was a whole network of media tied to this there were magic the gathering fiction books that i i read at the time yeah god don't judge me um but like this was a huge thing and it wasn't because the cards themselves were valuable or because players were stumping up a ton of cash in order to play the game it was this it was People like the game.

1:02:33Yeah, it was everything. You know, it was the gameplay and everything attached to it in the community. And it was a fun time. Anyway, shall we leave it there? Let's leave it there. This has been another episode of the Odd Lots podcast. I'm Tracy Alloway. You can follow me at Tracy Alloway. And I'm Joe Weisenthal. You can follow me at The Stalwart. Follow our producers, Carmen Rodriguez at CarmenArmin, Dashel Bennett at DashBot, and Kale Brooks at Kale Brooks. And thank you to our producer, Moses Andam. For more OddLots content, go to Bloomberg.com slash OddLots, where we have transcripts, a blog, and a newsletter that comes out every Friday.

1:03:09And you can chat about all our episodes in our Discord 24-7 with fellow listeners. Go check it out. Really fun place to hang out. Discord.gg slash OddLots. And if you enjoy OddLots, if you want us to do more episodes on the gaming industry, then please leave us a positive review on your favorite podcast platform. Thanks for listening.

1:03:32Thank you.

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From the publisher

 Since bursting onto the scene in the mid-1990s, Magic the Gathering has become one of the most popular games of all time, with millions of players collecting cards to battle each other in an imaginary fantasy realm. But Magic's early success came with a problem: the price of the game's most powerful and rare cards surged along with its popularity. Eventually, Magic's creators worried that the game would become too expensive and was at risk of becoming a short-lived fad. So, how do you pop a bubble in collectibles without completely alienating collectors? In this episode, we speak with Richard Garfield, the creator of Magic the Gathering, and Arka Ray, a long-time game developer at Microsoft who's now CEO of Richard's new gaming studio, Popularium. They talk about the surprising parallels between MTG and central banking, what they've learned from Magic, and how they're applying those lessons to Chaos Agents, Popularium's first new gaming launch. 

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