Jan 2, 2019 · 35m · a16z
a16z Podcast | We Gotta Talk Pokémon Go
Kyle Russell · 14m spoken Anu Hariharan · 7m spoken Sonal Chokshi · 6m spoken Ryan Hoover · 5m spoken
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of the a16z podcast, host Sonal Chokshi and industry experts analyze the cultural and technological phenomenon of Pokémon Go, exploring its implications for augmented reality, location-based business models, and viral app retention.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. The host holds 18.2% of the talking time here. How this is scored →
The host as informed peer 5.0 Guest teaching 3.9 Guest disagreement 1.6 The host pushing back 2.4
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 13:42 Kyle challenges Anu's stance on network effects
Kyle directly pushes back against Anu's claim that Pokemon Go currently lacks network effects, arguing that Pokestop lures create local density dynamics where more local players directly increase gameplay value.
Hardest push from the host ▶ 30:38 Sonal counters the Google Glass failure framingSonal rejects the premise that Google Glass was merely a failed dorky consumer product by explaining how enterprise applications distribute specialized knowledge to field workers based on research at PARC.
Biggest teaching moment ▶ 20:01 Kyle explains gamified apps versus appified gamesKyle provides a clear conceptual framework distinguishing utility apps that add game mechanics to drive retention from full games that function as utility and social platforms.
The host holds their own ▶ 7:43 Sonal concisely distills AR versus VRSonal demonstrates strong technical understanding by summarizing Kyle's detailed breakdown of virtual reality and augmented reality into a precise, crystal-clear definition.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Viral Success, Nostalgia, and Accessibility | 4 | 4 | 1 | 2 | Sonal prompts the discussion by bringing up real-world viral anecdotes including an autistic child connecting socially and animal shelters running out of dogs for walkers. The guests build collaboratively on these examples, citing nostalgia, accessibility, and IP execution as drivers of viral success. | |
| Comparing Augmented Reality and Virtual Reality | 5 | 4 | 2 | 2 | Sonal asks for a clear technical distinction between AR and VR. After Kyle details VR headsets versus translucent AR overlays, Sonal cleanly distills the contrast between self-contained virtual environments and digital layering over the real world. | |
| Granular Mapping Data and Social Conversation Magnets | 5 | 3 | 1 | 3 | Sonal notes the importance of fine-grained indoor geomapping data for retail applications and references specific in-game details like Bellsprout on subway tracks. She playfully teases Ryan about taking an Uber just to cross the street before Ryan explains physical conversation magnet mechanics. | |
| Evaluating Network Effects and Third-Party Ecosystems | 4 | 5 | 4 | 2 | Anu argues that Pokemon Go exhibits virality rather than formal network effects, prompting Kyle to directly push back by citing Pokestop lures and local player density mechanics. Sonal connects the discussion to collectible gaming mechanics and Nintendo stock performance. | |
| Sponsored Locations and Appified Gaming Business Models | 4 | 5 | 1 | 2 | The panel explores sponsored locations and how local businesses buy lures to drive real foot traffic. Kyle elaborates on the conceptual difference between gamified utility apps like Foursquare and appified games like Pokemon Go. | |
| Sensor-Rich Environments and Location Analytics | 6 | 4 | 1 | 2 | Sonal frames the discussion around sensor-rich environments, referencing WeChat's full-sensor adoption in China as well as subway safety warnings. Guests expand on real-time foot traffic data analytics and AR utility applications like IKEA room mapping. | |
| Avatars, Personal Expression, and Smart Glasses | 7 | 2 | 2 | 5 | When Ryan characterizes Google Glass as dorky and consumer-unfriendly, Sonal offers informed pushback by citing enterprise research from PARC regarding field knowledge dissemination. The segment also explores digital avatars and smart glasses as tools for personal expression. | |
| Distinguishing Fads from Trends and Designing Game Endgames | 5 | 4 | 1 | 1 | Sonal asks the guests how investors distinguish short-term fads from lasting trends, and then synthesizes Ryan's answer into four concise criteria: utility, frictionlessness, differentiation, and tailwinds. Kyle and Anu close with MMO endgame mechanics. |
Statements from this episode (16)
Russell: Generic Pokémon game mechanics would have produced only short-lived success
“They could have slapped it on almost any gameplay concept, say, like, an endless runner along the lines of what was, what's the one that we all, or everyone played Temple Run. You know, you can imagine, like, in the same way that there's, like, a Spider-Man ga…”
Kyle Russell: AR glasses will be worn daily by 2021
“In five years there'll be glasses, and you'll just always have these virtual things floating around you as you're going through the day.”
Hariharan: Pokémon Go is the first massive light-AR mobile game
“I think this was the first, I would say, like a massive game that showed light AR meaning You could get some experience of rudimentary augmented reality without an additional hardware.”
Hariharan: Niantic uses micro-location and climate data for Pokémon spawns
“Because, so they like, they know the Andreessen Horowitz fountain, they know the fountain behind the Rosewood Hotel. They also know, they take information on climate and weather conditions, you know, for the gaming aspect of it, they decide, you know, if you'r…”
Hoover: Visibly awkward public user actions drive word-of-mouth app growth
“And you know, these, there's certain apps that have come around that actually make people do awkward, weird things. And those are the things that inspire word of mouth and get people talking.”
Hoover: Nintendo stock rose 96% after Pokémon Go launch
“Nintendo is up to 96%. I just took this morning since early July.”
Hariharan: Pokémon Go lacks true network effects
“My personal view is, it's too early to say whether they have a network effect. Given the gaming elements today, I don't think they have a network effect.”
Russell: Future games will replace utility apps via core gameplay hooks
“What we're going to see is more games that end up accomplishing the goals of utility applications by keeping you hooked on the gameplay mechanisms.”
Hoover: McDonald's partnered with Niantic across 3,000 stores in Japan
“Today, they announced it just got released in Japan, the game for the first time, and McDonald's partnered with them, and their gym's now at nearly 3000 stores in Japan.”
Hariharan: Mobile game in-app purchases historically relied on under 0.5% of users
“Historically, the in-app purchases, it really came from what they call the whale users, which are less than, like.5% of what the app users are”
Russell: Real-time global camera coverage ('panopticon') is becoming reality
“The panopticon is going to be real. So this idea of a camera where you have a live view at any spot in the real world at any time, that's essentially becoming possible.”
Hoover: Foursquare foot traffic data accurately predicted Chipotle sales declines
“Using Foursquare data that can predict that Chipotle sales are going down just due to the foot traffic alone.”
Russell: Snapchat has 150M daily active users using AR filters
“Well, we're already expressing ourselves every day, one hundred and fifty million daily active users expressing ourselves with these filters that Apply these three D models and textures to our faces because we think that that reflects our personality at that p…”
Hoover: Snapchat has unique opportunity in AR where Google Glass failed
“What's so fascinating about Snapchat is they have such a unique opportunity to actually pull this off, whereas Google Glass was super dorky and nerdy and obviously not built for like a younger audience.”
Chokshi: Google Glass will find its primary success in enterprise applications
“Although I think people would argue that, and this is not, we haven't talked about this in great detail, we don't have time to, that Google Glass would probably find its promise in the enterprise, because I know when we were working on that sort of thing back …”
Russell: World of Warcraft kept millions paying $15/month via endgame content
“World of Warcraft has done the best job of periodically adding more and incredibly, increasingly difficult endgame content for its most hardcore players, and this is what has kept it millions of people paying 15 dollars a month for north of a decade now.”