WEBVTT

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If you wanted to start a multi -million dollar

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tech company today, you know, you would probably

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follow a very predictable script. Oh, absolutely.

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You'd have the pitch decks. Right. The slick

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pitch deck. You'd be booking meetings with venture

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capitalists and sitting in these stuffy corporate

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board rooms trying to secure massive bank loans.

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Yeah. You really expect the origin story of an

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industry titan to look, well... corporate. Exactly.

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We naturally assume there is this massive impenetrable

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barrier to entry that, you know, only the already

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wealthy or the exceptionally well connected can

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actually cross. But when you look at the actual

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history of game development, especially in the

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early 2000s, that polished corporate boardroom

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image completely shatters. It really does. It's

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totally different. Because the reality is some

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of today's most successful independent million

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dollar game studios. didn't start in a boardroom

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at all. They started with teenagers and hobbyists

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hacking the code of video games they had already

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bought. working in their bedrooms for absolutely

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free. Just purely for the love of it. Yeah. So

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today, we are taking a deep dive into exactly

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how that happens. We have a fascinating stack

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of sources in front of us detailing the history

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of a colossal initiative run by Epic Games. Right.

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It was called the Make Something Unreal contest,

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and it ran these massive sporadic bursts from

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2004 all the way to 2013. It really is a remarkable

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piece of technological history to define In the

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premise for you, Make Something Unreal was a

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multi -million dollar initiative specifically

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designed to reward developers who created mods.

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Which is short for modifications, right? Exactly.

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Modifications using the Unreal game engine. Epic

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Games essentially put up massive cash prizes,

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high -end hardware, and incredibly lucrative

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commercial software licenses. all to see what

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ordinary players could build using the bones

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of their existing hit games. Now before we go

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any further, I want to make sure we are all on

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the same page. We are going to be talking a lot

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about game engines today. Oh, for sure. That's

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a crucial piece of the puzzle. Right. So for

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the listener who maybe doesn't code or work in

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tech, how should they visualize what an engine

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actually is and why a license, for one, is such

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a massive prize? That is a great distinction

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to make. Think of building a video game like

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building a house. If you don't have a game engine,

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you have to build absolutely everything from

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scratch. I mean, you have to invent the concept

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of gravity so things fall down. Wow. Yeah, you

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have to write complex math just to determine

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how light bounces off a wooden table versus a

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metal pipe. You basically have to build the plumbing

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and the electrical wiring before you can even

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think about the fun stuff. Which would take a

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small indie team years to do, right? Decades,

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potentially. But a game engine is like buying

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a house where the foundation, the plumbing, and

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the electricity are already perfectly installed.

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So you don't have to invent gravity. Exactly.

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The engine already knows how gravity works. You

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just get to jump straight to building, designing,

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and decorating. the rooms. In the commercial

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world, a license to use a top -tier engine like

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Unreal Engine 3 usually costs a studio millions

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of dollars. Millions. That is wild. And whether

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you are a coder yourself, a creator of any kind,

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or honestly just someone who loves a truly great

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underdog story, this deep dive is going to be

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a masterclass for you. It really is. It shows

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exactly how giving people the right tools, removing

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those traditional barriers, and dangling a massive

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financial carrot can literally spawn entirely

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new industries out of thin air. Completely. So

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to really understand how wild this was, we have

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to go back to the beginning. The sheer chaotic

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scale of early crowdsourced game development

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long before the indie game scene was the highly

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commercialized machine it is today. It was a

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vastly different landscape back in 2004. You

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didn't have the digital distribution storefronts

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we have now. Right, no app store or easy downloads.

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No, there was no easy one -click way for amateur

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developers to monetize their hobbies. If you

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were making a mod, you were spending thousands

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of hours doing it purely for the love of the

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game and to share it freely with the community.

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OK, let's unpack this. The massive 2004 launch

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of the $1 million Make Something Unreal contest.

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The scale was just incredible. Epic Games didn't

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just quietly put up a web page. They partnered

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with massive hardware and software heavyweights.

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We are talking NVIDIA, Digital Extremes, and

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Atari. Huge names. Yeah. And the stats for this

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first contest are just staggering. They had 1

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,000 entrants, submitting mods across 13 different

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categories. That thousand entrants is massive

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for that era. And here is the kicker. All of

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these qualifying entries had to be completely

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freely available for download. You were building

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these mods for Unreal Tournament 2003 and Unreal

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Tournament 2004 and giving your hard work away

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to the player base for nothing. Which means the

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financial incentive of the contest itself was

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the only potential payout for these creators.

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And Epic made sure that payout was life -changing.

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Oh, absolutely. The grand prize wasn't just a

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plastic trophy. It was $50 ,000 in cash. Plus

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that commercial license for Unreal Engine 3 we

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just talked about. A literal multi -million dollar

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value. Yes. And Epic wasn't just rewarding individuals.

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They were giving away $300 ,000 worth of computers.

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They gave 50 computers just to the schools of

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students or faculty who submitted an entry. They

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were really investing in the whole ecosystem.

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And you even had people winning big outside of

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traditional running and shooting gameplay. A

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creator named Friedrich Kirchner won $25 ,000

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for a short film called The Journey. Oh, right.

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Using the engine to make a movie. Exactly. He

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won that in the best non -interactive real -time

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movie category, using game tech to essentially

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render an animated film. But wait, I have to

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play devil's advocate here. Go for it. Giving

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away commercial licenses that usually cost millions,

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plus hundreds of thousands of dollars in cash

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and hardware. That sounds incredibly generous,

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like almost too generous. Yeah. What was the

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catch for Epic? I mean, they aren't a charity.

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That is exactly the right question to ask. They

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absolutely were not a charity. What's fascinating

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here is how Mark Ryan, the vice president of

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Epic Games at the time, actually spelled it out

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after the 2004 contest. What did he say? He noted

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that the ultimate beneficiaries were the games

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industry as a whole because they uncovered, and

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this is a quote, incredibly talented people.

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But practically speaking for Epic. They had accidentally

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created the cheapest, most effective R &amp;D department

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in the world. How so? Well, think about the mechanics

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of quality assurance testing. Usually, a company

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pays a team of testers to try and break their

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software to find the bugs. By running this contest,

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Epic convinced thousands of the smartest, most

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dedicated hobbyists in the world to stress test

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their brand new engine for free. Oh, wow. Yeah.

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These modders were pushing the code past its

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intended limits, finding bugs, and creating entire

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new mechanics. Epic saved untold amounts of money

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on QA testing, generated massive PR, sold more

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copies of their base games, and simultaneously

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identified the top tier of unhired talent in

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the world. That's just brilliant business logic.

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And for the developers, it was the ultimate lottery

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ticket. It really was. The real Cinderella story

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of 2004 is the grand prize winner, a team called

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Tripwire Interactive. Oh yes, Tripwire? They

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built a World War II shooter mod called Red Orchestra.

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combined arms. Over the course of the contest's

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phases, they walked away with nearly $80 ,000

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in cash and computer hardware. That is huge for

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an amateur team. But more importantly, they got

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that engine license. Tripwire Interactive explicitly

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cites this contest as the singular reason their

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studio exists today. Because it removed the primary

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barrier. They didn't have to spend years trying

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to secure a bank loan just to afford the digital

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foundation for their game. They already had it.

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To put this in perspective for you, it's like

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someone giving you the keys to an entire fully

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staffed manufacturing factory just because you

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build a really cool custom attachment for their

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tractor in your own garage. That's a great analogy.

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They looked at your homemade tractor attachment

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and said, here's the factory, go start a business.

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And once Epic realized how effective this crowdsourced

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crucible was, they didn't just repeat it, they

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scaled it up. Precisely. They brought the contest

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back in 2008, partnering with Intel this time.

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The goal was to refine the competitive structure

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and pull even more high level development out

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of the community. Right. They asked for mods

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built using Unreal Engine 3 for the game Unreal

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Tournament 3. And they really dragged out the

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tension with a brutal phased structure. Phase

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two winners were announced in February 2009,

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distributing $70 ,000 in cash. Which is a lot

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of money to keep people motivated. Definitely.

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But then, those Phase 2 -winning mods were actually

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showcased at the 2009 Game Developers Conference

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in San Francisco. Imagine being an amateur modder

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working in your basement, and suddenly your work

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is playable on the floor of the biggest professional

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industry conference in the world. It's mind -blowing

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exposure. And it all culminated in February 2010

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for Phase 3, giving out a share of about $100

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,000 in cash and hardware. The overall winner

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that year was a team led by Michael Hedgeman.

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They created a game called The Haunted. It took

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the $50 ,000 first place prize and that coveted

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Unreal Engine 3 license. You're haunted, right?

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Yeah. Epic praised it heavily for blending intense

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survival horror, rich multiplayer mechanics,

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and truly nightmarish graphics. And even if you

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didn't get first place, the contest was still

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a total kingmaker. Just look at the fifth place

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runner -up in that 2008 contest. Oh, this is

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a great example. It was an abstract project called

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Hazard, The Journey of Life, which took home

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$10 ,000. That bizarre experimental project later

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became the critically acclaimed, mind -bending

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puzzle game, Antichamber. Antichamber was huge.

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So even placing fifth could be the springboard

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for a massive indie hit. It was a wildly successful

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model. But as we move into the next decade, the

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entire format of how Epic ran this talent search

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changed dramatically. Yeah, they abandoned the

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purely online, asynchronous format of people

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coding in their bedrooms and submitting files

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over the internet. Right, because by 2012, the

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industry was shifting, and Epic needed to prove

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something new. Exactly. The 2012 iteration, dubbed

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Make Something Unreal Live, was a massive pivot.

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The goal was to increase the pressure, the visibility,

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and the stakes. The stakes were incredibly high.

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To do that, Epic turned game development, which

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is traditionally a very slow, isolated, behind

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closed doors process, into a live spectator event.

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Which is such a weird concept. They also partnered

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with Train2Game. a distance learning resource

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for game development, and the tech requirements

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shifted entirely too. They really did. Instead

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of just modifying an existing PC game, teams

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had to use the Unreal Development Kit, the free

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version of Unreal Engine 3, to develop a completely

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standalone game for the iOS mobile platform.

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That is a huge difference. Which means you aren't

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just tweaking a gun's firing rate anymore. You

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are building menus, optimizing for a phone's

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battery, and handling touch controls. It's a

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massive leap in re - It really reflects the explosion

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of the App Store at the time. Epic needed to

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prove to the industry that their engine was the

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premier tool for mobile development, not just

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high -end PC shooters. So they set up this grueling

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gauntlet. It started with a two -day game jam

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to weed the applicants down to ten teams. And

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the theme they were given? Guy Fawkes. A very

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specific, culturally resonant theme. Right. You

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can't just rely on pre -built... generic sci

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-fi or fantasy assets, when the prompt is a 17th

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century historical figure, it forces immediate

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lateral thinking. It really does. The survivors

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from that initial Jam 3 top teams, plus a fourth

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team made up of the most talented people pulled

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from the losing groups, were chosen for the main

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event. Okay. They had to spend the next six months

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developing role -playing games based on the classic

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fighting fantasy game books. On brutal six months,

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I'm sure. All of this led up to a final live

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two -day development sprint at the Gadget Show

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Live in April 2012. They were placed on stage

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in front of massive screens with the public actively

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watching them work. Wait, I have to stop you

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there. Yeah. They put these developers in front

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of large screens to be watched by the general

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public at a gadget show. I love video games,

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I really do. But isn't coding incredibly tedious

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to watch? It can be, yeah. You're essentially

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watching people type lines of text, stare at

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spreadsheets, and debug error messages. Why try

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to make game development a spectator sport? That

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sounds like watching paint dry, but with more

00:12:38.960 --> 00:12:41.200
math. If we connect this to the bigger picture,

00:12:41.360 --> 00:12:43.159
it wasn't just about watching the keystrokes.

00:12:43.519 --> 00:12:46.980
It was about the mentorship and the human drama

00:12:46.980 --> 00:12:49.840
of creation. OK, I'm listening. Epic brought

00:12:49.840 --> 00:12:52.240
in industry legends to guide these teams live

00:12:52.240 --> 00:12:55.279
on stage. You had Peter Molyneux, Cliff Blazinski,

00:12:55.879 --> 00:12:59.080
John Hare Hare, absolute giants of game design

00:12:59.080 --> 00:13:01.440
mentoring these relatively unknown developers

00:13:01.440 --> 00:13:04.899
in real time. Oh, wow. That changes things. Exactly.

00:13:05.500 --> 00:13:08.559
By putting this on large screens, it demystified

00:13:08.559 --> 00:13:11.440
the magic of game design for the public. It turned

00:13:11.440 --> 00:13:14.080
an isolated technical process into an accessible,

00:13:14.320 --> 00:13:16.600
high -stakes narrative. You could see the problem

00:13:16.600 --> 00:13:18.799
-solving, the frustration, the breakthroughs,

00:13:18.820 --> 00:13:20.919
and the interactions with these legendary mentors.

00:13:21.340 --> 00:13:23.679
It was educational theater. Okay, I want you

00:13:23.679 --> 00:13:26.960
to imagine you are that amateur coder. You have

00:13:26.960 --> 00:13:29.320
maybe slept three hours in the last two days.

00:13:29.460 --> 00:13:32.059
Probably less. You have a massive monitor projecting

00:13:32.059 --> 00:13:34.559
your screen to a live audience. The clock is

00:13:34.559 --> 00:13:37.139
literally ticking down above your head, and Cliff

00:13:37.139 --> 00:13:39.240
Blazinski is literally breathing down your neck

00:13:39.240 --> 00:13:41.240
asking why your lighting code keeps crashing.

00:13:41.940 --> 00:13:44.360
The psychological toll is immense. It's a pressure

00:13:44.360 --> 00:13:47.019
cooker. The pressure was unbelievable, but it

00:13:47.019 --> 00:13:50.230
produced undeniable results. It did. A development

00:13:50.230 --> 00:13:53.610
team named Commander Kiwi won the 2012 contest.

00:13:54.090 --> 00:13:57.490
They built a fantasy RPG called Warlock of Firetop

00:13:57.490 --> 00:14:01.090
Mountain, lost chapters, securing the full commercial

00:14:01.090 --> 00:14:04.190
license for Unreal Engine 3. Good for them. But

00:14:04.190 --> 00:14:06.610
the real victory, the thing that proves this

00:14:06.610 --> 00:14:09.570
live crucible actually worked, is that all four

00:14:09.570 --> 00:14:12.149
of the finalist's games were successfully released

00:14:12.149 --> 00:14:15.129
on the iOS app store after the gadget show live.

00:14:15.509 --> 00:14:18.639
They all shipped a real commercial product. The

00:14:18.639 --> 00:14:20.840
live event proved they could forge diamonds under

00:14:20.840 --> 00:14:23.279
pressure. But to secure the future of the medium,

00:14:23.659 --> 00:14:26.460
the contest made one final pivot, focusing entirely

00:14:26.460 --> 00:14:28.179
on the next generation. Here's where it gets

00:14:28.179 --> 00:14:30.919
really interesting. Oh, the 2013 shift. Yes.

00:14:31.419 --> 00:14:33.980
In late 2012, they announced Make Something Unreal

00:14:33.980 --> 00:14:36.919
Live 2013. And this time, they closed the doors

00:14:36.919 --> 00:14:39.379
to the general public. The competition was open

00:14:39.379 --> 00:14:41.340
strictly to students. Just spooning. Right. They

00:14:41.340 --> 00:14:43.360
were tasked with making pitches for a PC game

00:14:43.360 --> 00:14:45.889
using the Unreal development kit. And if you

00:14:45.889 --> 00:14:48.110
thought Guy Fawkes was a weird constraint, the

00:14:48.110 --> 00:14:50.830
prompt they gave these students is wild. The

00:14:50.830 --> 00:14:54.169
theme was Mendelian genetics. Mendelian genetics.

00:14:54.450 --> 00:14:57.629
It's a brilliant, highly restrictive constraint.

00:14:57.990 --> 00:15:00.289
Right. For this iteration, Epic partnered not

00:15:00.289 --> 00:15:02.470
just with gaming entities, but with educational

00:15:02.470 --> 00:15:05.289
and scientific institutions. They had Staffordshire

00:15:05.289 --> 00:15:08.309
University as their educational partner, UCHI,

00:15:08.850 --> 00:15:12.169
the Games Industry Trade Association, and, incredibly,

00:15:12.649 --> 00:15:16.100
the Welcome Trust, a massive biomedical research

00:15:16.100 --> 00:15:18.580
charity. It's an amazing lineup of partners.

00:15:18.960 --> 00:15:21.440
It's like asking a group of master pastry chefs

00:15:21.440 --> 00:15:23.600
to bake a wedding cake, but telling them they

00:15:23.600 --> 00:15:25.399
can only use ingredients found in a hardware

00:15:25.399 --> 00:15:27.750
store. That's a great way to put it. It forces

00:15:27.750 --> 00:15:30.529
pure, desperate innovation. You couldn't just

00:15:30.529 --> 00:15:32.909
build another World War II shooter or a zombie

00:15:32.909 --> 00:15:35.690
survival game. You had to conceptualize highly

00:15:35.690 --> 00:15:38.309
innovative mechanics based entirely on the hard

00:15:38.309 --> 00:15:40.750
science laws of heredity and genetic inheritance.

00:15:41.110 --> 00:15:44.090
Exactly. And 12 teams made the shortlist in November,

00:15:44.429 --> 00:15:46.509
presenting works in progress. And the judges

00:15:46.509 --> 00:15:48.750
whittled it down to four teams to compete again

00:15:48.750 --> 00:15:51.330
at the Gadget Show Live in 2013. Back to the

00:15:51.330 --> 00:15:54.090
live stage. Back to the live stage. They followed

00:15:54.090 --> 00:15:57.159
that same high pressure live format. with mentors

00:15:57.159 --> 00:15:59.720
like Peter Molyneux returning, and new judges

00:15:59.720 --> 00:16:02.379
like Bioware producer Mike Gamble stepping in

00:16:02.379 --> 00:16:05.220
to evaluate the final products. And the winner

00:16:05.220 --> 00:16:08.200
they chose was a team called Dead Shark Triple

00:16:08.200 --> 00:16:12.039
Punch. They built a game called Epigenesis. And

00:16:12.039 --> 00:16:14.460
how did they interpret Mendelian genetics under

00:16:14.460 --> 00:16:16.440
all that pressure? They made a first -person

00:16:16.440 --> 00:16:18.080
ball game. Which no one would have expected.

00:16:18.279 --> 00:16:21.019
No. The judges were so blown away by the mechanics

00:16:21.019 --> 00:16:23.600
they actually described it as a potential e -sport.

00:16:24.240 --> 00:16:27.080
For winning first place, Dead Shark Triple Punch

00:16:27.080 --> 00:16:29.539
won a commercial license for Unreal Engine 3

00:16:29.539 --> 00:16:32.379
and a license for the brand new Unreal Engine

00:16:32.379 --> 00:16:34.960
4. Setting them up for the future. Completely.

00:16:35.399 --> 00:16:38.059
Even the second -place team, Kyro Games, walked

00:16:38.059 --> 00:16:40.820
away with a UE3 license for their game Polymorph.

00:16:41.100 --> 00:16:42.879
It seemed like the contest had finally found

00:16:42.879 --> 00:16:45.639
this perfect, sustainable rhythm. They had built

00:16:45.639 --> 00:16:47.960
a pipeline that pulled students out of the classroom,

00:16:48.519 --> 00:16:51.019
subjected them to intense, scientifically rigorous

00:16:51.019 --> 00:16:53.100
design challenges, and launched them straight

00:16:53.100 --> 00:16:55.159
into the commercial industry. So what does this

00:16:55.159 --> 00:16:57.759
all mean? We have this incredible engine of creation.

00:16:58.139 --> 00:17:01.159
This proven pipeline from dorm rooms to commercial

00:17:01.159 --> 00:17:04.700
storefronts. And then the twist. Make something

00:17:04.700 --> 00:17:07.299
unreal never returned after the 2013 event. It

00:17:07.299 --> 00:17:10.140
just ended. That was it. The million dollar mod

00:17:10.140 --> 00:17:14.799
contest simply vanished. But Epic Games didn't

00:17:14.799 --> 00:17:17.460
stop funding creators. They just completely changed

00:17:17.460 --> 00:17:20.960
the model. Fast forward to 2019 and Epic launches

00:17:20.960 --> 00:17:23.970
something called Epic Mega Grants. The huge shifts.

00:17:24.049 --> 00:17:27.150
Not a contest, a grant -based scheme. And the

00:17:27.150 --> 00:17:28.690
funding pool didn't just go up a little bit.

00:17:28.829 --> 00:17:32.069
It was a massive $100 million program. This raises

00:17:32.069 --> 00:17:34.269
an important question about the evolution of

00:17:34.269 --> 00:17:37.190
industry funding. We watched Epic move away from

00:17:37.190 --> 00:17:39.670
this high -stress winner -takes -all gladiator

00:17:39.670 --> 00:17:42.490
arena. Yeah, no more live stage sweating. Exactly.

00:17:42.690 --> 00:17:44.690
For a decade, developers had to fight through

00:17:44.690 --> 00:17:47.190
phases, survive live on -stage game jams, and

00:17:47.190 --> 00:17:49.289
conform to highly specific themes just to get

00:17:49.289 --> 00:17:52.000
their hands on a commercial license. The MegaGrants

00:17:52.000 --> 00:17:54.599
shift represents a maturing of the ecosystem.

00:17:55.180 --> 00:17:57.460
Instead of making developers jump through theatrical

00:17:57.460 --> 00:18:00.559
hoops to prove their worth, Epic created a system

00:18:00.559 --> 00:18:03.240
that simply funds promising creators outright

00:18:03.240 --> 00:18:06.759
with no strings attached. It relies on the sheer

00:18:06.759 --> 00:18:09.980
volume of a hundred million dollar fund to elevate

00:18:09.980 --> 00:18:12.819
the entire industry without the bottleneck of

00:18:12.819 --> 00:18:15.640
a competition. It is a totally different philosophy.

00:18:16.079 --> 00:18:18.619
We've spent this deep dive tracking how a company

00:18:18.619 --> 00:18:21.720
literally birthed studios by giving away free

00:18:21.720 --> 00:18:25.099
tools and setting seemingly impossible challenges.

00:18:25.180 --> 00:18:27.619
From the ground up. Yeah. From the Wild West

00:18:27.619 --> 00:18:30.859
to the 2004 modding scene where Tripwire Interactive

00:18:30.859 --> 00:18:32.859
won enough cash and tech to build a company from

00:18:32.859 --> 00:18:35.720
nothing, to the live stage pressure cookers of

00:18:35.720 --> 00:18:39.140
2012 and 2013 that forced exhausted students

00:18:39.140 --> 00:18:42.140
to turn genetics into a competitive esport. they

00:18:42.140 --> 00:18:44.440
really pushed people to the limit. They changed

00:18:44.440 --> 00:18:47.579
the PC and mobile gaming landscapes forever by

00:18:47.579 --> 00:18:50.019
just daring people to build something cool and

00:18:50.019 --> 00:18:51.900
giving them the underlying plumbing to do it.

00:18:52.099 --> 00:18:54.000
And while the new grant system is objectively

00:18:54.000 --> 00:18:56.240
more supportive and provides a massive safety

00:18:56.240 --> 00:18:58.440
net for modern developers, it does leave you

00:18:58.440 --> 00:19:00.180
with something to consider. What's that? Well,

00:19:00.259 --> 00:19:02.779
if this crowdsourced high -pressure crucible

00:19:02.779 --> 00:19:06.079
model worked so perfectly to uncover unproven

00:19:06.079 --> 00:19:08.980
genius in video games, Why aren't we seeing this

00:19:08.980 --> 00:19:11.079
in other critical industries? Well, that's an

00:19:11.079 --> 00:19:14.059
interesting point. Imagine a make something unreal

00:19:14.059 --> 00:19:17.019
contest for medical research or green energy

00:19:17.019 --> 00:19:20.039
infrastructure. What if ordinary people were

00:19:20.039 --> 00:19:22.480
given the corporate keys, a massive financial

00:19:22.480 --> 00:19:25.619
incentive and a bizarre constraint and simply

00:19:25.619 --> 00:19:28.819
told to solve a problem? Are we missing out on

00:19:28.819 --> 00:19:31.140
rapid innovation in other fields because we are

00:19:31.140 --> 00:19:33.480
too attached to the traditional corporate boardroom?

00:19:33.619 --> 00:19:35.839
Man, it really makes you wonder how many incredible

00:19:35.839 --> 00:19:37.960
solutions are just sitting in someone's bedroom

00:19:37.960 --> 00:19:40.579
waiting for the right kind of chaotic invitation

00:19:40.579 --> 00:19:43.240
to come out. Absolutely. Thank you for joining

00:19:43.240 --> 00:19:45.960
us on this deep dive. Keep questioning the process,

00:19:46.279 --> 00:19:48.160
keep exploring, and we'll catch you next time.
