VC10X
VC10X - Gamification of Consumer Apps - Phylicia Koh, GP, Play Ventures
AI Summary
Phylicia Koh, GP at Play Ventures, explains how gaming mechanics are becoming the operating system for consumer apps, with in‑app purchases in non‑gaming sectors now outpacing traditional gaming spend. She outlines Play Ventures' $142 M thesis focused on "playable apps" that combine controllable outcomes, intrinsic motivators, social features, and live‑ops economics, highlighting portfolio examples like Alinea and Bible Chat. The discussion contrasts free‑to‑play monetization with subscription models, examines AI’s role in user acquisition, and predicts the next five years of metaverse‑like platforms and product discovery shifting away from search.
Episode Description
In this episode, Phylicia Koh, GP at Play Ventures, explains why gaming is the new operating system for consumer engagement and how "playable apps" are transforming industries from fintech to relationship wellness.
Play Ventures focuses on apps that use gaming's "live operations" and in-app economies to drive user habits. These products succeed by offering controllable outcomes, intrinsic motivators, and social elements like clans or leaderboards.
In early 2025, consumer in-app purchase (IAP) officially surpassed gaming IAP revenue for the first time in history. This shift indicates a massive opportunity for founders to apply free-to-play monetization models to non-gaming consumer sectors.
⭐ Sponsored by Podcast10x - Podcasting agency for VCs - https://podcast10x.com
We talk about:
-
Overview of the $142 million early-stage fund and its specific investment thesis.
-
Analysis of why consumer in-app purchase spending now exceeds gaming spending.
-
The four key characteristics of a successful playable app.
-
Insights into portfolio companies like Alinea, Bible Chat, and Aria.
-
The difference between adding features like streaks and building a deep meta-design.
-
How subscriptions compare to free-to-play models in terms of lifetime value.
-
The impact of AI on user acquisition and creative fatigue.
-
How the metaverse already exists in platforms like Roblox.
-
The future of product discovery and the shift away from traditional search engines.
-
Personal game recommendations and the evolution of the gaming audience.
& lots more
TIMESTAMPS
(00:00) - Consumer IAP spending exceeds gaming IAP spend
(00:19) - Why you can't just slap on gamification to a product
(00:59) - Introduction to Felicia Ko, General Partner at Play Ventures
(02:33) - Play Ventures' thesis on "Playable Apps"
(03:45) - The four characteristics of a successful playable app
(06:27) - Portfolio examples of gamified consumer apps
(09:45) - Market trends supporting the rise of playable apps
(11:15) - Why subscriptions cap lifetime value compared to free-to-play models
(12:48) - How gaming founders are applying their skills to new consumer spaces
(14:25) - The right stage for a company to implement gamification
(17:02) - How gamification boosts retention, engagement, and virality
(18:33) - What types of games Play Ventures invests in
(20:44) - The much-anticipated release of GTA VI
(23:59) - What makes a game a massive success like GTA or Candy Crush?
(26:00) - The importance of user acquisition and finding blue ocean markets
(29:22) - Game recommendations: Monopoly Go, Whiteout Survival, Roblox, and more
(32:31) - Is gaming becoming a viable career path like YouTubing?
(33:30) - The average gamer is in their 30s
(37:00) - Does the Metaverse already exist?
(38:05) - The future of gaming and playable apps in the next 5 years
(41:04) - Rapid-fire round: Play Ventures' investment strategy
(42:50) - How founders can connect with Phylicia Koh
LINKS
Phylicia Koh on X - https://x.com/ppphyl
Phylicia Koh LinkedIn - https://www.linkedin.com/in/phyliciakoh
Play Ventures - https://www.play.vc/
Prashant Choubey - https://www.linkedin.com/in/choubeysahab
Subscribe to VC10X newsletter - https://vc10x.beehiiv.com
Subscribe on YouTube - https://youtube.com/@VC10X
Subscribe on Apple Podcasts - https://podcasts.apple.com/us/podcast/vc10x-investing-venture-capital-asset-management-private/id1632806986
Subscribe on Spotify - https://open.spotify.com/show/7F7KEhXNhTx1bKTBFgzv3k?si=WgQ4ozMiQJ-6nowj6wBgqQ
VC10X website - https://vc10x.com
For sponsorship queries reach out to prashantchoubey3@gmail.com
Show Notes
In this episode, Phylicia Koh, GP at Play Ventures, explains why gaming is the new operating system for consumer engagement and how "playable apps" are transforming industries from fintech to relationship wellness.
Play Ventures focuses on apps that use gaming's "live operations" and in-app economies to drive user habits. These products succeed by offering controllable outcomes, intrinsic motivators, and social elements like clans or leaderboards.
In early 2025, consumer in-app purchase (IAP) officially surpassed gaming IAP revenue for the first time in history. This shift indicates a massive opportunity for founders to apply free-to-play monetization models to non-gaming consumer sectors.
⭐ Sponsored by Podcast10x - Podcasting agency for VCs - https://podcast10x.com
We talk about:
- Overview of the $142 million early-stage fund and its specific investment thesis.
- Analysis of why consumer in-app purchase spending now exceeds gaming spending.
- The four key characteristics of a successful playable app.
- Insights into portfolio companies like Alinea, Bible Chat, and Aria.
- The difference between adding features like streaks and building a deep meta-design.
- How subscriptions compare to free-to-play models in terms of lifetime value.
- The impact of AI on user acquisition and creative fatigue.
- How the metaverse already exists in platforms like Roblox.
- The future of product discovery and the shift away from traditional search engines.
- Personal game recommendations and the evolution of the gaming audience.
& lots more
TIMESTAMPS
(00:00) - Consumer IAP spending exceeds gaming IAP spend
(00:19) - Why you can't just slap on gamification to a product
(00:59) - Introduction to Felicia Ko, General Partner at Play Ventures
(02:33) - Play Ventures' thesis on "Playable Apps"
(03:45) - The four characteristics of a successful playable app
(06:27) - Portfolio examples of gamified consumer apps
(09:45) - Market trends supporting the rise of playable apps
(11:15) - Why subscriptions cap lifetime value compared to free-to-play models
(12:48) - How gaming founders are applying their skills to new consumer spaces
(14:25) - The right stage for a company to implement gamification
(17:02) - How gamification boosts retention, engagement, and virality
(18:33) - What types of games Play Ventures invests in
(20:44) - The much-anticipated release of GTA VI
(23:59) - What makes a game a massive success like GTA or Candy Crush?
(26:00) - The importance of user acquisition and finding blue ocean markets
(29:22) - Game recommendations: Monopoly Go, Whiteout Survival, Roblox, and more
(32:31) - Is gaming becoming a viable career path like YouTubing?
(33:30) - The average gamer is in their 30s
(37:00) - Does the Metaverse already exist?
(38:05) - The future of gaming and playable apps in the next 5 years
(41:04) - Rapid-fire round: Play Ventures' investment strategy
(42:50) - How founders can connect with Phylicia Koh
LINKS
Phylicia Koh on X - https://x.com/ppphyl
Phylicia Koh LinkedIn - https://www.linkedin.com/in/phyliciakoh
Play Ventures - https://www.play.vc/
Prashant Choubey - https://www.linkedin.com/in/choubeysahab
Subscribe to VC10X newsletter - https://vc10x.beehiiv.com
Subscribe on YouTube - https://youtube.com/@VC10X
Subscribe on Apple Podcasts - https://podcasts.apple.com/us/podcast/vc10x-investing-venture-capital-asset-management-private/id1632806986
Subscribe on Spotify - https://open.spotify.com/show/7F7KEhXNhTx1bKTBFgzv3k?si=WgQ4ozMiQJ-6nowj6wBgqQ
VC10X website - https://vc10x.com
For sponsorship queries reach out to prashantchoubey3@gmail.com
Comments
Want to join the conversation?
Loading comments...