Why the Future of Video Games is Moving Back to the Dinner Table

Key Concepts

• Board: A 24-inch touchscreen gaming console designed for face-to-face, shared-display interaction using physical game pieces.
• Hermeus: An aerospace company developing autonomous, hypersonic (Mach 5+) aircraft for defense and potential commercial use.
• Turbine-Based Combined Cycle (TBCC) Engine: A hybrid propulsion system (Chimera) that combines a gas turbine for low-speed flight and a ramjet for high-speed (Mach 3+) flight.
• American Dynamism: A venture capital thesis focusing on startups building critical infrastructure, defense, and hardware to solve real-world problems.
• Iterative Hardware Development: The methodology of building and testing one prototype per year to de-risk technology incrementally.

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Part 1: Board – The Future of Social Gaming

Main Topics & Key Points

• Product Functionality: Board is a tabletop console that recognizes physical game pieces on a touchscreen. Unlike standard touchscreens that track limited touch points, Board uses proprietary conductive patterns in its pieces and embedded AI to track unlimited objects in real-time.
• Hardware Strategy: The company focuses on "new category creation," blending the tactile nature of board games with the interactivity of video games.
• Manufacturing: The company moved away from owning the entire supply chain (as done with the founder's previous company, Mirror) to collaborating with a Tier-1 contract manufacturer in Thailand, significantly reducing time-to-market.

Business Model & Pricing

• Pricing: The console retails for $399 (includes seven games). Revenue is driven by hardware sales, a game store ($35/game), and an upcoming subscription-based "Creator Studio" that allows users to design their own games and pieces.
• Strategy: The company aims to keep hardware margins low, focusing on long-term customer lifetime value (LTV) through software, accessories, and community-driven content.

Key Arguments

• Social Connection: The founder argues that modern gaming is often isolating. Board is designed to bring families together, specifically addressing the "device fatigue" parents feel regarding their children's screen time.
• Accessibility: By simplifying rules through digital automation (e.g., the game handles the math and logic), Board lowers the barrier to entry for complex strategy games.

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Part 2: Hermeus – Hypersonic Autonomous Flight

Main Topics & Key Points

• Darkhorse: The company’s ultimate goal is a reusable, uncrewed hypersonic aircraft capable of flying faster than Mach 5. It is designed to provide military leaders with "asymmetric advantage" over adversaries like China.
• The Chimera Engine: A hybrid engine that uses a pre-cooler to manage air intake temperatures (preventing the engine from melting at Mach 3) before transitioning to a ramjet mode for higher speeds.
• Uncrewed Advantage: By removing the pilot, Hermeus eliminates the risk of POW scenarios and allows for more aggressive flight profiles that would be physically impossible for a human pilot to manage.

Methodology: The Quarterhorse Program

• Iterative De-risking: Hermeus follows a "one miracle per year" philosophy.
  • Mark 0: A jet-powered go-kart to test runway operations.
  • Mark 1: First flight (30 seconds, 50 ft altitude).
  • Mark 2.1: First supersonic flight (achieved within 364 days of Mark 1).
  • Future iterations: Moving toward high-temperature metallic airframes and full Chimera engine integration.

Key Arguments & Evidence

• Capital Efficiency: AJ Piplica argues that private companies can build defense hardware faster and cheaper than traditional "primes" (like Raytheon) by using iterative testing and securing government contracts (DIU) that pay for data rather than just finished products.
• Commercial Potential: While defense is the primary focus, the founder envisions future commercial applications in high-speed cargo transport (e.g., medical supplies, time-sensitive documents), potentially shrinking global economies by making trans-Atlantic travel possible in 90 minutes.

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Notable Quotes

• Bren Putnam (Board): "Fundraising is storytelling just like talking to your customers is storytelling. You have to build what you need to tell that story."
• AJ Piplica (Hermeus): "There is a reason there has not been a new fighter jet manufacturer... founded in this country since the 1950s... [but] the inverse is actually paradoxically the correct thing. This is the opportunity if you are willing to take the risk."

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Synthesis/Conclusion

Both companies represent a shift in the startup ecosystem toward "hard tech." Board is successfully applying hardware-as-a-moat to the consumer entertainment space, focusing on social utility and family bonding. Hermeus is applying the "SpaceX model" to military aviation, using iterative, data-driven development to disrupt the slow-moving, high-cost defense industry. Both founders emphasize that the key to success in hardware is not over-engineering early prototypes, but rather validating the core experience and securing a clear path to revenue through iterative milestones.