How To Design Winning Games

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Hey, it’s Kushagra. Welcome to this week’s AtlasMoth drop.

Most people think startups win by outcompeting others.
But if you talk to any top VC, they’ll tell you real winners escape competition entirely.

This week, we're exploring why most companies aren't built for venture capital, what VCs look for (hint: fund-returning power plays), and how escaping competition by not fighting harder creates billion-dollar outcomes.

💬 Building for people beyond borders? Book a call to explore more

Most game firms shouldn’t take VC money. Only 1% should.

VCs want big cash-outs of hundreds of millions or billions.

Big funds want big wins, Supercell, Riot, Roblox, Zynga-type moves.

Why do most firms fail? One word: beef.

Too much competition kills big wins.

Firms fight for scraps, lower prices, make less, and create no real value.

In a monopoly, one firm controls the market, sets prices, and does well.

How to dodge beef and win? Power.

Real power, from Hamilton Helmer’s 7 Powers book.

How You Get That Power

Power starts with invention.

As Helmer says:
'Each kind of Power starts with making new things, new stuff, new ways, new brands, new biz plans. If you copy? Nah. 'Me too' won't do.'

Big wins come from creators, not imitators. It’s about deep passion, serious skill, and full commitment. Real innovation comes from caring deeply.

When can you build Power?

Helmer says:
'Big world shifts like tech jumps, new ways to live, new laws create opportunities for those who watch closely.'

These shifts are rare but are coming. Tech moves fast, and new opportunities will emerge. You need to spot and ride the wave.

The 'Flux' Era

Games thrive in flux.

Big brands win because they catch the right wave at the right time.

VCs want to see if you spotted the change and are ready to move.

The best founders feel the shift and build the next big thing.

When the world shifts, the old champs lose their grip.

The stuff that made them big? It breaks.

And that’s the shot for new ones to step in, shake things up, and build their Power.

Power = two things
A flex and a wall.

Flex
How Power helps you make more cash at low costs or by charging more than others. It shows how big your move is.

Wall
How do you keep copycats out? It shows how long your Power lasts.

Example
'Super Duper Mobile Games Inc.' blows up on TikTok with a game. They get cheap users. But if others copy the hack fast, the edge is gone. No wall = no Power.

7 Power Moves in Games:

1. Scale Flex (big size = big edge)

2. Net Flex (more users = more worth)

3. Counter Moves (play a game old firms can't)

4. Switch Pain (make it hurt to leave)

5. Brand Hype (own hearts, not just minds)

6. Locked Gold (get something no one else can)

7. Secret Sauce (do it so well no one can touch you)

Not all Powers are for Day 1.

Some need time, wins, and growth. Where you are now tells you which Powers you can grab.

Startups have no cash, big teams, or clout. But early Powers flips that.

Counter-Positioning: The Big Sneak
New firms move fast with better game plans, while old firms stay stuck, too afraid to disrupt their success.

The Flex
Cheaper to run, more cash, cooler vibes.

The Wall
Old firms don’t want to disrupt their success, so they freeze.

Why Netflix Won and Blockbuster Flopped

Fans loved "no late fees," but Blockbuster was hooked on $800M from late fees in 2000. They tried to ditch late fees, but by then, Netflix was skyrocketing.

Cornered Resource: Your Cheat Code

What it is:
Grab something valuable (tech, rights, deals) that no one else can touch. It makes you richer, faster.

The Flex
Charge more or spend less because you have the goods.

The Wall
Patents, trademarks, secret tech, or exclusive deals block copycats.

In Games?
Own rights to a hot brand.
Lock down an influencer.
Build uncopyable tech.

How Steam Pulled It Off

Valve used Half-Life’s IP as a cornerstone.
They forced Vivendi to bundle Steam with Half-Life 2, getting instant users. Fans installed Steam, despite it being rough in 2004.

Result? Valve set the foundation for a billion-dollar empire.

Why Didn’t Other Big Firms Move Like Valve?

Other big publishers had iconic IPs, but Valve’s Steam was a direct threat to EA, Take-Two, and Ubisoft, who were all-in on retail.

Switching to digital was too risky.

By the time they adapted, Steam was already taking off, using network effects and switching costs to lock its position.

Want to play this move?

Flip a big IP, take something old, and give it a fresh twist. Make it irresistible.

Palworld’s Big Move

Palworld isn’t just a game, it’s counter-positioning.

The devs saw Pokémon’s hype and added a twist: guns.

Pokémon Company and Nintendo can’t do that.

Now, Palworld owns the “Pokémon with guns” brand, its cornered gold.

Big companies stick to old ways. Switching to new platforms? Too risky and costly.

Staff are more focused on bonuses than chasing unproven upside.

Give Free Stuff, Steal the Show

One killer move: offer your big product for free.

Fortnite beat PUBG by going free, dominating the market.

Timing is key; the window to ride the new hype is short.

Helldivers II: A Genius Move

Helldivers II is a counter-punch to live-service games.

Arrowhead won by staying lean, skipping big budgets and endless grinds to make a simpler, more fun, and accessible game.

Wrap-Up

1. What’s changing?
   Tech, culture, trends, what shifts create opportunities?

2. What’s your “now or never” moment?
   What’s happening in the world that makes this the perfect timing for success?

3. Why you?
   Why is your team the best to ride this wave?

4. Be the rebel.
   Flip conventions in design, production, distribution, and business models to gain the edge.

5. Look ahead.
   The startup stage is just the beginning. What’s next? What Powers will you unlock?

But none of this matters without execution.

Your team drives the success. Ready to build a generational company? Reach out to us