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February 21, 2024

Today's Flux Feed

Get smarter than your boss in 5 minutes with today's business news.

What's the key learning?

👾Gamestop and Immutable to launch NFT marketplace for gamers

👋Magellan's co-founder takes leave of absence...and investors don't like it

↔Meta launches virtual personal boundaries

Hey hey, Flux fam!

Here's everything you need to know today - in under 3 minutes.

Today's big stories

👾Gamestop and Immutable to launch NFT marketplace for gamers

👋Magellan's co-founder takes leave of absence...and investors don't like it

↔Meta launches virtual personal boundaries

Oh and get this...

Nintendo Switch sales topped 100 million at the end of December, but that ain't the only major milestone it hit. The Switch console just beat the lifetime sales of Nintendo's Wii console.

Gamestonk and Immutable will build a NFT marketplace for video game assets and sign me up

Background: Gamestop is a video game and consumer electronics retailer that started back in 1984. Btw, Gamestop also own EB Games here in Aus. But in January last year, this crew became a household name across the globe.

What happened: TLDR: a whole bunch of Reddit users staged a massive short sell of the company, which sent Gamestop's share price literally soaring...then crashing back down. 

What else: Now, Gamestop is joining forces with an Aussie crypto platform called Immutable, which specialises in NFTs. The plan is to build a NFT marketplace where gamers can trade digital video game assets, and launch a US$100 million fund to back NFT projects.

So what's the key learning?

💡While NFTs are highly speculative assets now, as time goes on, we're starting to see many use cases for them. In particular, NFTs are looking like they may become a key element in video games.

💡Already, we're seeing video game producers focus on monetising in-game development (i.e. new skins, new weapons)...but NFTs could take this to a whole new level, and give players unique ownership of in-game assets.

💡High-flying players and NFT marketplaces could start to attract more players to games...which helps Gamestop, too. And Gamestop knows it can rely on its huge Reddit fanbase to be its guinea pigs.

Magellan share price sinks as investors worry about co-founder's leave of absence

Background: Magellan Financial Group is an Aussie investment manager founded back in 2006. It's seen as one of Australia's biggest investing success stories.

What happened: Magellan's char and chief investment officer is like the Aussie golden child of fund management. He's the JT to N'Sync...the Beyoncé to Destiny's Child...you get it. But now, he's taking a medical leave of absence.

What else: Investors didn't like this at all. And when news broke, Magellan shares sank 6.2%...which means they're down around 66% in the last 12 months.

So what's the key learning? 

💡Company news has the potential to seriously influence investor behaviour...especially when it's about somebody at the top. Because generally, a change in a top executive carries more downside risk than upside risk. Ya know, better the devil you know.

💡Some investors get really spooked that a newcomer could change the company's strategy for the worse.

💡Usually, when top executives leave, there's usually a succession plan worthy of the Royals to ease investors' concerns and keep the share price steady. In this case, the other co-founder has jumped in.

The Zuck sets boundaries online so there won't be any (personal) space invaders in the metaverse

Background: Meta has been working on their corporate space in the metaverse called Horizon Worlds. It's where Meta employees can get together and collaborate in virtual workspaces. 

What happened: We don't really know how Horizon Worlds works. But we now know there's a personal boundary tool, which will make users feel like they've got 1.2 metres between their virtual avatar and others'.  

What else: The idea is that the personal boundary tool will help set behavioural norms in the virtual world...kinda like virtual moderation. 

So what's the key learning?

💡Big tech companies have been under pressure to moderate their content in the physical world (ya know, Spotify and Joe Rogan...Facebook and publishers on the site).

💡As the metaverse starts to take shape, this is the first time we're seeing moderation in the virtual world. 

💡Users on VR platforms have been raising alarm bells around abusive behaviour in the metaverse for a while now. But it looks like Meta is (finally) a step ahead of it.

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