This is a REALLY bad take - WAN Show October 23 , 2020

Episode Summary

Executive Summary: The episode centers on copyright, streaming, and game distribution economics, led by a critique of a game director’s claim that streamers should license games like music. The hosts argue that streaming often promotes games, but note edge cases for story-driven titles. They also cover RTX 3000 supply shortages, Intel selling its NAND business to SK Hynix, upcoming secret shopper investigations, and assorted industry news.

Main Topics: Streaming, copyright, and fair use in games (Priority: 5/5): The hosts debate Alex Hutchinson’s claim that streamers should pay for licenses to stream games, contrasting legal rights, fair use, and business reality. They argue the idea is harmful in practice, though some narrative-heavy games may deserve more control from developers. Copyright claims, attribution, and fair use complexity (Priority: 5/5): The discussion broadens into how fair use is often misunderstood, using Linus Media Group’s mistaken copyright claim on benchmark footage as an example. They emphasize that fair use is a legal argument, not a simple checklist, and that attribution matters ethically even when not legally required. RTX 3000 supply shortages and allocation strategy (Priority: 4/5): The hosts analyze retailer shipment data showing severe shortages for RTX 3090, 3080, and pre-launch 3070 cards. They argue Nvidia likely prioritized launch pricing and market pressure over adequate inventory, and explain why partner allocation is driven by business relationships and product mix. Intel sells its NAND flash/storage business to SK Hynix (Priority: 4/5): They cover Intel’s exit from NAND storage manufacturing for roughly $9 billion, noting that Intel had struggled to profit from SSDs and that Optane remains separate. The deal reshapes market share across major flash suppliers. Secret Shopper return and sponsorship/news updates (Priority: 3/5): Linus announces the return of the Secret Shopper series, with new system integrator evaluations and early access on Floatplane. The show also mentions new Floatplane creators, hiring at LMG, and sponsor reads. Loot boxes, browser tools, and consumer tech odds and ends (Priority: 2/5): The episode briefly touches on an EA loot box class action, a bot-built website tracking broken McDonald’s ice cream machines, and sponsors like Honey, PDF Element, and Redux. These segments serve as lighter tech/business side notes.

Key Arguments: Game streaming often functions as promotion, not substitution, especially for multiplayer or emergent-content games like Among Us and Fall Guys. Developers and publishers should retain the right to restrict streaming of certain narrative-heavy games, but using that right aggressively is often bad business. Alex Hutchinson’s proposal for streamers to buy licenses is impractical and counterproductive because it would burden creators and reduce platform value. Fair use is not a simple formula; it depends on purpose, nature, amount, and market impact, and must usually be argued case by case. A mistaken copyright claim on a clip can be reversed quickly, illustrating how automated systems can overreach. Nvidia appears to have priced RTX 3000 cards aggressively while knowing supply would be constrained, likely to pressure AMD and console competitors. Retail allocation is shaped by historical sales data, region, channel type, and partner relationships, not merely by who orders first. Intel’s NAND sale reflects a long-term retreat from a business it could not profitably scale, rather than a sudden decision. System integrators and component vendors prioritize higher-margin configurations and launch-specific products to manage limited supply and maintain profitability.

Data Points: Tweet engagement ratio: 5.1K likes / 7.9K comments - Referenced for Alex Hutchinson’s original tweet to indicate it was heavily criticized. Follow-up tweet engagement ratio: 5.1K likes / 18K comments - Used to show even stronger backlash to Hutchinson’s follow-up. Proshop RTX 3090 fulfillment rate: 15% - 309 of 2,012 ordered units delivered or incoming. Proshop RTX 3090 delivery rate: 34% - 161 delivered to customers, or 65% if incoming cards are counted. Proshop RTX 3080 fulfillment rate: 9.7% - 871 of 9,010 ordered units delivered or incoming. Proshop RTX 3080 delivery rate: 12% - 504 delivered to customers, or 20% including incoming cards. Proshop RTX 3070 fulfillment rate: 4.8% - 206 of 4,330 preorders delivered or incoming before launch. Proshop RTX 3070 delivery rate: 4.8% - Only 206 units were available/incoming at the time of reporting. Denmark population: 5.8 million - Used to contextualize Proshop as a retailer in a relatively small market. Intel NAND sale value: $9 billion - Reported price for Intel’s flash memory business sale to SK Hynix. Intel NAND market share: 11% - Approximate share before the sale. SK Hynix market share post-deal: ~20% - Projected overall flash market share after acquiring Intel’s NAND business. Samsung market share: 31% - Referenced as the leading flash supplier. Kioxia market share: 17% - Referenced as a major flash supplier. Western Digital market share: 16% - Referenced as a major flash supplier. Micron market share: 13.7% - Referenced as a major flash supplier. McDonald’s broken ice cream rate: 7.16% - Overall share of ice cream machines reported down by the MCBroken tracker. Phoenix broken ice cream rate: 15.56% - Example city showing a particularly high concentration of broken machines. RTX 3070 MSRP: $500 - Used to argue Nvidia had less revenue per unit than with higher-end cards. Number of hiring roles mentioned: 10 - LMG announced multiple open positions across writing, editing, dev, design, and warehouse roles.

Pivotal Quotes: "streamers should be paying the developers and publishers of the games they stream" — Alex Hutchinson (quoted by host): The tweet that sparked the main discussion about whether streamers should license games. "it is just holistically better for everyone" — Linus: Used to describe why not enforcing streaming restrictions tends to benefit publishers, streamers, and audiences. "fair use is not as simple as people seem to think that it is" — Linus: Summary of the broader legal discussion around copyright, clips, and reaction videos.

Implications: The episode reinforces that streaming and content rights are a negotiated business reality, not just a legal checkbox. It suggests publishers should avoid anti-streaming moves that alienate audiences, while listeners should better support creators and understand how supply chains and licensing shape tech and games.