CYNOPSISeSPORTS & GAMING
09.15.16
It’s Thursday, September 15, 2016, and this is your weekly early morning eSports & Gaming brief.
The launch of the Professional Esports Association this past week adds a new layer to the eSports world as the organization looks to shore up the involvement of players and teams into the business with perks that include a 50/50 split in revenue distribution. Team SoloMid, Cloud9, Team Liquid, Counter Logic Gaming, Immortals, NRG eSports and compLexity Gaming are all on-board as partners in the new league, which also offers the likes of health care, shares of Casters and more. Commissioner Jason Katz told Cynopsis that he hopes the new approach will extend career lives and open the doors for better ties with industry sponsors as the sport moves past its “wild west” stigma.
“There is a fairly established architecture for major professional sports leagues as a business the NFL, NBA, MLB, MLS, etc. which all operate under an architecture of team organizations owning the league with players sharing in the profits with the owners,” Katz said. “Broadcast deals and sponsorship deals run through the league directly. In eSports, we’ve had a history of tournaments being run by entrepreneurs who were essentially mom-and-pop shops and didn’t have the financial resources or business background to step up and handle the operation of leagues and mediate between a dozen team owners. There were a number of tournament organizers who came and went and there was no reliability for the fans, sponsors or media partners.”
The organization will launch with a CS:GO league in January that offers weekly matches during the ten week season and a prize pool of at least $1,000,000 during its first year and $500,000 for season one. Meanwhile, the league is hosting conversations for a media partner and sponsors for the inaugural tournament.
“People would get very short notice of when leagues are going to start play and who was going to participate and it is almost entirely because the people who are offering that product don’t have a close working relationship with the teams and players,” he said. “They don’t share the profits and they give as little as they can. What the PEA brings are true team franchises where we are making an indefinite commitment that they will be around for many years playing in PEA leagues. That creates benchmark stability for players, sponsors, broadcasters, fans and team organizations themselves.
COMPETITION & TOURNAMENTS
Speaking of the player involvement, the World Esports Association introduced its inaugural lineup of members of the organization’s "Players Council," designed to “give the players important insight and input into decision making at the highest level, as well as the ability to help shape the formation and adjustment of rules and policies which directly affect players’ careers.” Players rep each of the teams represented by WESA, including Fnatic, Natus Vincere, EnVyUS, Virtus.Pro, G2 Esports, mousesports and Ninjas in Pyjamas, with Viktor Jendeby set to serve as Council Chairman. "I have maintained that transparency in everything that WESA is doing is critical to its success, and giving the players a seat at the table is an important step in fulfilling that promise,” said Ken Hershman, Executive Chairman and Commissioner of WESA. “I am confident that under the leadership of Viktor, the players will now be able to actively contribute to helping esports continue to develop."
DreamHack is broadening its wings, announcing not only a return to Austin in 2017, but addition events in Atlanta and Denver. The eSports LAN event hits Texas from April 28-30, Georgia from July 21-23 and Colorado from Oct. 20-22. The event’s first-ever stop in the US last May saw events in Counter-Strike: Global Offensive, Hearthstone, Street Fighter V, StarCraft and Heroes of the Storm.
Team EnVyUs’ victory over Splyce in the Call of Duty World League Championship helped drive the most viewed eSports event in title history, with combined viewing of matches besting 20 million views. The worldwide peak concurrent viewership bested the previous record for Call of Duty eSports events by more than 40%. “Sunday’s Finals were the perfect conclusion to the biggest fan celebration in our history with Call of Duty XP and to the debut season of the CWL,” said Rob Kostich, EVP and GM, Call of Duty, Activision. “With over 1,000 teams participating from all over the globe, it came down to the final two elite squads, one from North America and one from Europe. It was an epic, raucous finale that capped an incredible weekend of action that was watched around the world by millions. We cannot thank the Call of Duty community enough for their support, it has been incredible all year long.”
AEG is making a commitment to eSports, locking in a deal with ESL for a strategic long-term global partnership “that will align each company’s assets to further broaden the reach of eSports around the world” enabling the league to utilize AEG’s global network of clubs, theaters, arenas and stadiums for qualifying events, tournaments, and world championships as well as AEG’s leadership in live event production, ticketing, marketing and sponsorship. "eSports has reached mainstream status. Our tournaments are viewed by as many, if not more spectators as traditional sports, so it is a natural progression that industry events increasingly become held at world class venues,” said Steven Roberts, Executive Chairman at ESL North America.
The National Association of Collegiate eSports (aka NAC eSports) is officially off and running, announcing its establishment last week in a move to offer “legitimacy and structure for eSports programs officially recognized by their college or university.” With 20 institutions now in the fold, including founders Columbia College (Mo.), Indiana Institute of Technology, Maryville University (Mo.), Midland University (Neb.), Robert Morris University (Ill.) and University of Pikeville (Ky.), the organization is actively looking to add new members, with institutions fully accredited by an authorized higher educational accrediting agency relative to their region and national affiliation.
Gamer Sensei is now leading recruitment of a Pro Hearthstone Team for NRG eSports. The two companies already partner for coaching and curriculum development, while the direct development of pro talent marks a new initiative for both organizations. Potential candidates must pass Gamer Sensei’s coaching certification or by completing lessons with a student account. “NRG eSports continues to set precedent for eSports, and joining Gamer Sensei to create the world’s first eSports recruiting pipeline is just another example. This exclusive partnership is a huge validation of our platform, our caliber of talent and the algorithms we’ve built to assess and rank players and coaches,” added Gamer Sensei co-founder, William Collis.
Another new eSports venue for Las Vegas, as a new venture entitled Millennial Esports is set of launch an event and production complex in the Neonopolis building on Fremont Street in November. The venue will span 15,000-square feet with a 400-500 person spectator arena designed to host both live tournaments as well as viewing parties for other events. The space will also offer a broadcast facility and resources for online casters who want to stream content on Twitch. Its first event will be the Halo Championship Series Open Circuit on Nov. 18.
A CYNOPSIS MESSAGE
Entries are open for the
3rd Annual Cynopsis Sports Leaderboard
Have you utilized social media platforms to promote a product to sports fans throughout 2016? From global brands to local stations, social media has proven to be the great equalizer
and we want to see your work.
Submission Deadline: October 21st
ENTER TO WIN
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INSIGHTS
Fantasy sports has a deeper tie with eSports. A new study from Leger, showed that 75% of women who plan on playing in a fantasy football league have watched an eSport or competitive video gaming event (compared to 56% of men). Overall, more than nine in ten (94%) women who plan to play fantasy football this season also play video games, according to the study (men: 86%). Meanwhile, the survey is already noticing upticks in the percentage of adults who have watched a competitive video gaming event since its last study in May, with viewership rising from 15% to 19% of adults compromising 24% of households. Meanwhile, the level of those who were either ‘Extremely Likely’ or ‘Very Likely’ to watch eSports in the next 6 months grew from 14% in May to 17%.
INDUSTRY
EA is putting its development teams under one umbrella, which will be known as EA Worldwide Studios. In a post, CEO Andrew Wilson announced that the move would take out the line between HD and mobile experiences, with EA Mobile and Maxis now joining the central studios organization led by Patrick Soderlund, while Samantha Ryan will continue to lead Mobile and Maxis teams. In addition, the Frostbite team would now become part of the company’s Technology organization. “The world is changing around us games are now a part of the lives of nearly three billion people, while a convergence of technologies is opening up even more ways to play,” said Wilson. “
Team Xbox’s first-ever Play Anywhere game is off and running in ReCore via the console and Windows 10 in North America, Latin America and most Asian countries. The game, – from creator Keiji Inafune’s Comcept Inc., Armature Studio, and Microsoft Studios – gives fans access to both the Xbox One and Windows 10 versions of the game for one price with progress and achievements shared across devices.
Riot is now pulling in 100 million monthly players for League of Legends, company executives told Polygon. That is up from the 67 million reported in 2014. “Our players have stuck with us with this incredible loyalty that really challenges us every day to feel like we earn it,” Brandon Beck told the site. “They’ve created this community where all this fan art is shared, and there are all these people to hang out with and there’s all these phenomenal streams to watch with the advent of streaming. It’s all that stuff that our players have built around us that’s allowed this to happen.”
Legion, the latest World Of Warcraft expansion, sold over 3.3 million copies on its first day of sale. Blizzard Entertainment reports that it marked its highest launch-week player concurrency for the title since the 2010 launch of Cataclysm.
Speaking of WoW, Blizzard’s Rob Pardo unveiled the launch of a new gaming company titled Bonfire Studios. Announcing the launch in a post, Bonfire will get backing from Riot and others and become organized "into small but powerful and diverse superhero teams, like the Avengers." He notes, “Game developers live the dream scenario where passion meets work. We don’t view our week as something to get through so we can really live on the weekend. But often, developers must compromise and decide??do I work on a blockbuster game where I have less personal impact or the gutsy indie studio that struggles to get noticed? Our vision is to create a studio that doesn’t require them to choose.”
Most streamed categories for the week ending Sept. 4, per Gamoloco…
1.
League of Legends with 19,478,279 hours streamed
2.
CS:GO – 8,868,740
3.
Hearthstone – 7,709,830
4.
World of Warcraft – 6,534,353
5.
Dota 2 – 5,700,798
6.
Overwatch – 3,970,214
7.
Call of Duty: Black Ops – 3,471,735
8.
Gaming talk shows – 1,584,372
9.
Destiny – 1,575,165
10.
Poker – 1,269,104
MARKETING & PROMOTION
General Mills is getting into the eSports game, inked a deal to become the first presenting sponsor of Yahoo Esports Live, a new hour-long weekly live show. Activision will include custom branded segments and video advertising for Reese’s Puffs Cereal. As part of this campaign, Reese’s Puffs will also sponsor Yahoo’s coverage for the live stream of ESL One New York 2016 from October 1-2. The show includes two 30-minute segments, Late Night League and Tilted, airing every Monday at 6p. “As a leader in the emerging Esports space and an experienced player in live programming, Yahoo was the obvious choice for our new campaign for Reese’s Puffs,” said Devin Kunysz, marketing manager, Reese’s Puffs, General Mills. “We’ve found a really unique way to connect with our audience around the new Yahoo Esports Live, so that we’re able to not only entertain and engage fans around our brand, but drive results for our business.”
2K is pushing the launch of NBA 2K in London’s Trafalgar Square tomorrow with a slate of events taking place on an official NBA half-sized basketball court. Activities will see Dunk Elite showcase their balling and high-flying skills, while YouTube fave Tobjzzle will also participate. Fans who attend can win copies of the game, PlayStation 4 consoles and NBA 2K17 merchandise .
HyperX is now offering its official Xbox licensed gaming headset, CloudX Revolver Gears of War. Title fans can sport the headset complete with battle-weathered design and offering a studio-grade sound stage that lets gamers hear opponents from farther away and more accurately.
DUUL announced the national launch of their eSports contest platform designed to connect brands to gamers. In the announcement, that company stated that it would create experiences on the brand’s behalf with contests or tournaments online in synergy to whatever marketing strategies that they are already using. “DUUL is on a mission to grow the eSports experience for gamers everywhere, we believe eSports is a participation activity first, and a spectator sport second,” said Gabriel Kruse, founder of DUUL.
Now that the NFL season is underway, EA Sports is partnering with McFarlane Toys to debut a series that will hit retail, dubbed EA Sports Madden NFL 17 Ultimate Team Series 1. Names will include Cam Newton, tom Brady, Rob Gronkowski, Odell Beckham Jr., Todd Gurley, Amari Cooper, and DeAndre Hopkins with each figure offering a Madden NFL 17 redemption code to redeem in-game for 7 Pro Packs.
POWER PLAYERS: UNLV’s Robert Rippee
Las Vegas’ gamble on eSports continues to blossom. Last month, UNLV’s renowned International Gaming Institute announced that it would add eSports to the mix, allowing students to explore the industry and create business plans relevant to the casino industry ranging from designing competitive events to improving experience models. Dedicating space and resources to growing profitability by leveraging competitive gaming, the eSports Lab is the first of its kind at the university and represents an evolution of and complement to the university’s current casino gaming innovation courses. Cynopsis eSports spoke with Robert Rippee, Director of the Hospitality Lab and eSports Lab, about the program, eSports’ role in Las Vegas and lessons learned from the millennial crowd.
Rippee on eSports: At the IGI, we are really pushing hard on eSports and trying to begin to pose and answer some of the questions necessary to begin to try to integrate eSports into the integrated resort and casino. The first step of that is this eSports lab. I’ve got 21 students and about half are graduate students and the other half are undergrad and they come from a variety of disciplines: gaming student, hospitality students, computer science, engineering and three law school students. We are either going to put together business models for development of an eSports experience in a casino or research a topic that supports that such as issues in gaming and regulation or technology adaptation.
On the importance of authenticity: Authenticity is more about the millennial demographic behavior than it is about eSports. Part of what I do as part of my research here is to look at millennials and their behavior and I am learning how they think and how they view brands. They talk about how in their world, everything is transparent. They live in a digitally connected world where they truth about everything is a click away. So they immediately see that if Firestone suddenly shows up sponsoring an eSports tournament with a logo, it is meaningless to them because Firestone has nothing to do with eSports. Firestone would see zero response. On the other hand, a brand like Red Bull is a brand they understand and they know that is a brand that steps in on an organic level and does grassroots events.
On challenges: The challenge if you are a large organization is that if you go into you ad agency and say to get us into eSports, that is probably going to fail. That’s the old school model of traditional sports that won’t work in this highly interactive audience where they might run TV ads and put some banners up at the event. That’s the wrong approach. Instead, the approach is to take an active role in eSports. Understanding how to be involved with the culture is the million dollar question.
On how eSports will impact Las Vegas: You’re not going to see one of the larger casinos suddenly move out a lot of slot machines and plop down eSports equipment. It wouldn’t work. What I think is going to happen is that you are going to see a new hybrid entertainment gaming environment evolve. It hasn’t been built yet. If you build a gaming club you pay to sit in front of a computer and pay to play. That’s a really bad business model for a casino here. It doesn’t generate enough revenue. So it has to be bigger than that. You have to look at non-players to make it work and provide a level of escapism that will appeal to a broader crowd. If you look at the large music festivals here, they are very successful, drawing hundreds of thousands of millennials. But they aren’t really concerts. They are mashed up multi-layer experiences of food and socializing rolled into one. If you look at the success of nightclubs here with their size and scale, you are seeing things about escaping into another world. That’s what connects with them.
BOSSES
Blizzard SVP Chris Metzen announced his decision to retire, posting that “I’ll be focusing on the one thing that matters most to me in all the worldmy family. They’re the core of my life and the source of my deepest joy and inspiration. In addition to raising our two little ones, we recently welcomed our new baby into the family! Being home with them all, having time and space to really live…to love my wife with all my strength…that’s my career now.”
The British eSports Association is tapping the talents of eSport trade journalist Dominic Sacco to oversee content strategy for the organization.
Game Trailer of the Week: Horizon Zero Dawn
Spark up the 4K for this new trailer from PlayStation and Guerilla Games. Upcoming title Horizon Zero Dawn blends a lush environment with primitive tribes and futuristic tech in the upcoming game, which is set to be released on Feb. 28, 2017. Click here to watch.
ON THIS DAY in 2009: Activision releases Marvel Ultimate Alliance 2.
Trivia: The Covenant are fictional military alien races in which game series? (Email chris-sports@cynopsis.com with your answer and be sure to include your name, company and city.)
Answer to Our Last Sports Trivia Question: Name of the camp where Jason roamed in Friday the 13th. Answer: Camp Crystal Lake. Kudos: Julie Moran/Australia; Chris Davies-Virgin Media/London; Rob Casalaina-ITN/NY; Quinton Gierlatowicz-MEC/Jordan Bienstock-Katz Broadcasting/Atlanta; Andy Pittman-TAMU/College Station; Benjamin Chan-RPA (Rubin Postaer & Associates)/Santa Monica; Nate Eckman-Ultimate Media Ventures/LA.
Later — Chris
Chris Pursell for Cynopsis | eSports @VegasandVine
09.15.16
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