Learn how companies work from the people who know them best. Each episode dissects a single business - from its origins and model to its financials and competit...
Gaming Consoles Part 3: Nintendo - [Business Breakdowns, EP.203]
Today's episode is the third in our three-part miniseries on video game consoles. Here, we are breaking down Nintendo. Our guest is Ryan O'Connor, the founder of Crossroads Capital. He has a wealth of knowledge about Nintendo, and you will hear it throughout this episode.
We discuss the history of the brand and business, including how it revitalized the industry in the 1980s, some of its strategic decisions, and how the Nintendo Switch is a new economic opportunity for the business. That ties into the console thesis, which we have discussed in the previous two episodes.
Please enjoy this Breakdown of Nintendo.
Gaming Consoles Part 1: The Thesis
Gaming Consoles Part 2: Sony
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:02:52) Episode Overview: Nintendo Breakdown
(00:03:58) Nintendo's Business Transformation
(00:06:57) The Origins of Nintendo
(00:09:14) The Video Game Crash of 1983
(00:12:18) Nintendo's Revival Strategy
(00:15:23) The NES Era and Quality Control
(00:19:57) Modern Nintendo: Digital and Third-Party Ecosystem
(00:25:40) Nintendo's Focus on Younger Generations
(00:33:36) The Shift to a Recurring Revenue Model
(00:39:43) Revenue Model of Nintendo Switch
(00:40:11) Backward Compatibility and AI Enhancements
(00:41:59) Nintendo Switch Online: The Netflix of Games
(00:45:20) Nintendo's Business Model Transformation
(00:51:24) Digital vs. Physical Game Sales
(01:01:19) Nintendo's IP and Cinematic Universe
(01:08:53) Management and Shareholder Relations
(01:14:10) Risks and Future Outlook
(01:15:40) Key Lessons from Nintendo's Evolution
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1:15:54
Gaming Consoles Part 2: Sony - [Business Breakdowns, EP.202]
This is the second episode of our multi-part series on the video game console market. If you've yet to listen to Episode One, Sia Kamalie is the founder and fund manager at Skycatcher. Join me in breaking down the video game console market and his thesis for why it's an inflecting opportunity.
In this episode, we go micro and Sia is back to break down Sony. Sia and I spend a lot of time talking about catalysts and some of the dynamics that are happening under the hood of this massive conglomerate. Please enjoy this Breakdown on Sony.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:04:50) Series Overview: Video Game Console Market
(00:05:43) Deep Dive: Sony's Business Segments
(00:06:43) Sony's Entertainment Powerhouses: PlayStation and Crunchyroll
(00:08:39) Sony's Strategic Shifts and Financials
(00:13:06) Crunchyroll: The Netflix of Anime
(00:14:18) Crunchyroll's Market Position and Growth Potential
(00:16:30) Synergies Between Sony's Business Lines
(00:19:09) Sony's Blockchain and NFT Ventures
(00:21:05) Sony's Financial Outlook and Growth Strategy
(00:29:12) Sony's M&A Activities and Gaming IP
(00:42:08) Emerging Markets and Gaming
(00:47:06) Sony's Management and Future Prospects
(00:48:31) Lessons From Breaking Down Sony
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47:29
Gaming Consoles Part 1: The Thesis - [Business Breakdowns, EP.201]
Today's episode is the first in a multi-part series on the video game console market. Our guest is Sia Kamalie, the founder and fund manager at Skycatcher. Skycatcher describes itself as focused on capturing asymmetry at the internet frontier, and Sia has very strong conviction that the video game console market is entering a major paradigm shift with an app store model set to hit its inflection point.
We start with an overview of the video game console market, laying out its size and current state. In episodes two and three, we explore this theme in even more depth when we cover the names most exposed to it: Sony and Nintendo.
On these episodes, we always recommend doing your own research. We invited Sia on to lay out his thesis, so this one is particularly geared towards that investment opportunity. Please enjoy this Breakdown of the video console market.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:06:54) Overview of the Video Game Console Market
(00:14:52) The Shift to Software and Digital Purchases
(00:19:02) Nintendo and Sony: Current Trends and Future Prospects
(00:29:23) In-Game Purchases and Subscription Models
(00:33:58) Nintendo's Iterative Console Cycle
(00:34:47) Sony's Lifetime Value and Revenue
(00:35:56) Profit Margins and Software Sales
(00:40:26) Console vs. Mobile and PC Gaming
(00:47:44) The Rise of eSports
(00:50:41) Gen Z and the Future of Gaming
(00:54:28) Emerging Markets and Console Growth
(00:56:37) Valuation and Market Potential
(00:59:08) Lessons From The Video Game Console Market
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54:07
Arm: The Silicon Blueprint - [Business Breakdowns, EP.200]
This is Zack Fuss. Today, we're breaking down Arm Holdings. Arm designs the architecture powering billions of devices, from smartphones and data centers to IoT devices and automotive systems. In this episode, we'll explore Arm's unique value proposition and how it thrives as a licensing giant in a market dominated by leading-edge manufacturers.
To break down Arm, I am joined by Jay Goldberg, who is the CEO and lead analyst at D2D Advisory, a technology and strategy consultancy. We discuss its business model, the partnerships that drive its growth, and its role in enabling companies like Apple, NVIDIA, and Qualcomm. We will also unpack Arm's business history, including its acquisition by SoftBank, its failed takeover by NVIDIA, and its IPO earlier this year. Arm currently sports a $150 billion market cap with sales approaching $5 billion, a rather robust 30x revenue multiple. Please enjoy this Breakdown of Arm.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Introduction to Business Breakdowns
(00:00:52) Introduction to Arm
(00:02:27) Arm's Business Model Explained
(00:05:05) CPU vs GPU Dynamics
(00:07:33) Arm's Competitive Landscape
(00:08:52) Historical Growth and Market Expansion
(00:14:06) RISC vs CISC: Architectural Approaches
(00:18:38) Arm's Licensing and Partnership Model
(00:22:12) Arm's Chip Design Evolution
(00:22:39) The Critical Role of Software
(00:23:34) Arm's Compatibility and Ecosystem
(00:23:41) Dramatic Recent History
(00:24:12) SoftBank's Acquisition and Nvidia's Interest
(00:25:15) Nvidia's Ambitious Bet
(00:26:25) SoftBank's Wake-Up Call
(00:27:02) Arm's Market Penetration
(00:28:07) Arm's Ubiquity in Electronics
(00:29:22) Influential Figures in Arm's Success
(00:30:33) Arm's Financials
(00:33:32) Risks and Competitive Threats
(00:40:16) Future Opportunities and Lessons
(00:41:10) Conclusion and Final Thoughts
Today, we are breaking down the global luxury group Kering. You know Kering from its brands Gucci, YSL, Bottega Veneta, Balenciaga, and the list goes on. It's a luxury house similar to LVMH, but LVMH over the past five years is up over 40% and Kering is down over 60%.
To break down Kering, I am joined by Jonathan Eng, portfolio manager at Causeway. We cover the owners and operators of Kering, the Pinault family. We also discuss wholesale distribution versus retail distribution and brand margin profiles. But Kering's core brand, Gucci, is different from much of what you see in luxury, and we spent a significant amount of time diving into it. What makes Gucci more cyclical than understated luxury? Where do we stand with Gucci today? And how does Jon think about all of this as an investor tapping into his historical context in the space? Please enjoy this breakdown of Kering.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.
Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Show Notes
(00:00:00) Welcome to Business Breakdowns
(00:00:53) Overview of Kering and Its Brands
(00:02:13) Kering's Business Strategy and Challenges
(00:05:02) Historical Context and Family Influence
(00:07:09) Comparing Kering and LVMH
(00:10:27) Financial Performance and Market Dynamics
(00:18:05) Impact of Creative Directors and Brand Evolution
(00:21:28) Modern Analytical Approaches in Luxury Market
(00:23:29) Exploring Kering's Development Centers
(00:24:36) Decentralized Decision-Making in Luxury Brands
(00:25:04) Wholesale vs. Retail: Control and Margins
(00:27:33) Strategic Store Locations and Investments
(00:28:51) Geographical Brand Preferences
(00:30:19) Balenciaga's Advertising Fallout
(00:33:46) M&A Landscape and Future Growth
(00:37:41) Valuation and Market Position
(00:43:06) Operational Gearing and Risks
(00:43:58) Key Lessons from Studying Kering
Learn how companies work from the people who know them best. Each episode dissects a single business - from its origins and model to its financials and competitive edge. We uncover the lessons behind every success story. Learn more at www.joincolossus.com.
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