Email: Business School and Questions

Dear Malstrom

 

I’ve read your blog for quite some time and what you’ve written is awesome. It’s funny because you what got me interested in business. I was also intrigued when you mentioned financial freedom, and I’ve started to read and expand my financial intelligence. I’ve read Rich Dad Poor Dad and now I’m looking for other books. All of it has made me realize how weak business schools really are. Clayton Christensen blamed the schools for companies failing. I’m in a exit course for the business school and I expected to learn a lot more about business before getting sent out into the real world. This class is a joke. The professor only mentions Apple and how great they are (he even tried to say that Apple defeated Nintendo). I understand they’ve done well in recent years, but they are just another business. I kind of want them to go out of business just to end the madness. What I really wanted to tell you was this: In said class the professor tried to say that Starbuck’s cups were a weakness because they were disposable. Another student quickly responded “But they need the cup to sell coffee.” It was then it hit me that these business professors are just weak academics. It’s sickening. I want to learn business, not theory crafting. I’m not learning about business. In fact, it’s only filling my head with useless theories and not how to run a business.

 

But I’ll digress. I had some questions to ask you, if you would indulge me.

 

First, Starcraft. I was wondering if you thought the game feels more like it’s becoming “E-Sport heaven” rather then being a fun game. I play it with friends, but it feels like more and more that it’s not meant for me and meant for E-Sport dudes. For one, Blizzard keeps adding maps made by these E-sport people. They even added 2 Team Liquid maps into the 1v1 map pool. I paid to play with Blizzard’s content, not Team Liquid’s. Another thing is that I play Terran and I’m feeling more and more that the race isn’t meant for me because I’m not a Korean who can make 50 Marines do 60 things. I really want more macro and building a big army for cool battles, but I’m not really getting that. I also ask because maybe I’m just misguided and complaining about my race. You really haven’t mentioned it on your blog so maybe you can shed some light on this matter.

 

Second is about Nintendo (as always). Do you really think Nintendo will change? You mentioned they might be doing New Legend of Zelda and there is a new 2D Mario, but has Nintendo really changed? What do you see Nintendo doing? Will they try to go back to the old school ways, stumble or will they give up and make what they want? What’s in store for them?

 

My last question has to do with financial freedom. I’ve read though a few of Robert Kiyosaki’s books. They are really good, but I’m wondering if there are any other books on the subject of financial freedom. I’m a little nervous to step out because I fear I’ll waste money on a book that tells me the same dribble I get from my business school and financial analyst. Are there any other things you can suggest like seminars? Any help is great.

 

Thanks for writing so much. You’ve really given me an interest in business. Hope I can buy my jet soon :)Give this guy a cigar!

Let me answer your questions in reverse order.

There is a ton of hype with seminars, and I wouldn’t really bother with them for now. Anything like seminars or even books are useful only in the context if you go out and apply that information. Usually the seminars are just a marketing exercise to sell you more stuff. So be careful.

You become who your friends are. The best thing you can do is to make friends with people involved in banking, law, entrepreneurs, and all of that. Whether we like it or not, we adopt the mentality of the people we are around (which is why parents instinctively don’t like their kid making friends with the ‘bad kid’).

Business is about people and helping people. In fact, the etymology for the word of corporation is the Latin word ‘corpus’ which means ‘body of the people’. Much of what I find in the mentality of successful businessmen is not a ‘how do I help myself?’ which you constantly find in employees but ‘how do I help others?’. Many, many businessmen believe in a sort of karma. It is also why you have probably read why they are so passionate about charity. (When was the last time academics were passionate about charity? Yeah.)

Will Nintendo change? I don’t know. I was thinking something earlier today and it was why are we so interested in old video game consoles and video game history in general? We’re not interested in toy history or even the history of generalized computer software like spreadsheets or word processors. “It is because you are a gamer.” I don’t think that is it. Game machines hold a certain fascination to nearly all people as they get older.

I think the reason for the fascination of gaming history is because it is the heart of the computer revolution. Boys didn’t grow up becoming programmers because of spreadsheets or word processors, they did so because of VIDEO GAMES. It was video games that introduced computers to the masses long before personal computers were born. And to this day, it is the video game that teaches children about the joy of computers.

Nintendo’s biggest problem is the same as every other Japanese gaming company. It is this bizarre concept prevalent in Japanese circles about the cult of creativity. Creativity is the worst thing that has ever occurred to gaming. It is why we get all these garbage narrative games, these worthless ‘experience’ games, and game development revolving around developers’ appetites instead of the customers’ appetites.

For Starcraft II, here is what I was told from a friend who works at Blizzard (who was hired there before Starcraft 1 came out). He said that the current speed of Starcraft 2 was put out around the office as a joke. The game being this fast was, at first, a silly prank. But for whatever reason, it became the standard speed of the game. I suspect the reason had to be for the E-Sports scene.

Blizzard’s WoW subscriptions do not give them as much money as people think they do. What is actually very profitable are the store mounts and pets they sell. My point is that the game, as a game itself, isn’t where the gold is at. The online maintenance issues are more expensive than people think (especially the snotty person you constantly see on a gaming message forum who ‘knows’ the costs aren’t much… based on no evidence). It is difficult to compete with Blizzard because Blizzard has all this online technocracy.

So each game from Blizzard now has a ‘Big Idea’ which they hope will create a new market. In Starcraft 2, it is E-Sports. In Diablo 3, it is the Real Money Auction House. People keep saying Blizzard is a conservative company, but I think they are bolder than any other game company. While other game companies were debating whether to make their games playable over the Internet, Blizzard was making Battle Net.

I share your frustration with Starcraft 2. It is why I do not enjoy playing the game. RTS games have always had a player’s progression in skill be defined by tactics and strategy. Starcraft 2’s progression largely revolves around Actions Per Minute. Tactics and strategy do not come into play as progression until you’re at at least 100 APM.

Before Starcraft 2 fans email me, let me say this was stated by Day[9]. What is referred to as the non-tactics/strategy portion of the game is often labeled ‘fundamentals’. It won’t matter if I use the wrong tactics or strategy if I can control my units faster and ramp up production sooner than my opponent. This is the primary way of progression through the ranks until at least Platinum.

One thing I recently realized is how much time Starcraft 2 takes. A game can last anywhere from fifteen minutes to forty five minutes where you cannot have much of a break. If you watch Day[9] with any regularity, those are more hours of your life gone. Watching and studying your replays also takes some time. In comparison, a raid session in WoW goes for a couple of hours where it is easy to take a break within (such as tuck a kid to sleep).

As for what you said about business teachers talking about business, it is interesting to note that Clayton Christensen already made a billion dollars out in the real world before he became a teacher. It is probably why he was able to have his insights.

Academia is important in that it allows people to pursue and study knowledge in a sanctuary from the economy. Unfortunately, many teachers became teachers only for the purpose of sanctuary. They want life the easiest way possible. It is why they end up being so stupid because their behavior mimics that of an animal-like life.

Remember this video? Your email is a good excuse to post it:

Doesn’t matter? Tell that to the bank!

I do have a long post related to business I’ve had in storage for quite some time. I have become very interested in Business History (which should actually be a field in itself. Real history doesn’t revolve around politicians because real life doesn’t revolve around politicians). The time period I am most interested in is the from 1450 to 1850. This is the period of Colonization. We were not taught much about it at all.

Who created the New World? It was businesses and investors who funded everything… including Christopher Columbus. The more I study it, the more in awe I am. There is a reason why the West, not the East, won the New World. It is the origin of the Industrial Revolution.

I haven’t posted it because I never finished it. I stopped when I got to the 1700s. I feel compelled to post it because of the rampant ignorance in message forum youths. Mostly, it is ignorance about the corporation. These people do not know what a corporation is or where it came from or how it created the New World. But there are historical answers that exist in the world of reality which are independent from anyone’s opinions. And the answers are stunning.