screaming fans & packed stadiums - how games are turned into a global sport

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Competitive gaming has taken off in the last years. Publishers like Riot Games with League of Legends or Wargaming with World of Tanks have built their business around the idea that these games are indeed a sport. League of Legends now attracts millions of viewers in live streams, and its championship events fill stadiums like LA's Staples Center. It seemingly happened overnight, but it did not. As any sport, electronic sports have evolved into their own complex eco system, with a myriad of business opportunities for multiplayer game developers. This lecture shows how it works, who the significant actors in this burgeoning industry are, how big it has become and sheds light on deal and investment sizes. Slides from my talk at Respawn Gathering conferencee, August 20th 2013.

TRANSCRIPT

SCREAMING FANS & PACKED STADIUMSHow games are turned into a global sport

ESL ARENA

PLAYER VS PLAYERTEAM VS TEAM

CHAMPIONS

FAN CULTURE

WHAT THE EXPERTS ARE SAYING

“ I feel like eSports is happening with or

without us. Games have become the biggest

unofficial sports league in the world right

now. There’s a massive (…) ecosystem of content. ”

Eric Hirshberg, CEO Activision

“ There are fundamental advantages that e-

sports will have over traditional sports. ”

Gabe Newell, Founder & CEO Valve

“ eSports is growing out of control. It’s alive

and breathing and flying away. I have no idea when it’s going to stop. ”

Dustin Browder, Lead Designer StarCraft II Blizzard

32m+ MAUMultiplayer Online Battle Arena (MOBA)

50m registered players globallyFirst Person Tank Simulation

10m+ copies soldReal Time Strategy (RTS)

5m+ MAUMOBA

30m+ copies sold of all CS VersionsFirst Person Shooter (FPS)

100m players across franchiseFirst Person Shooter (FPS)

THE GAMES

IcefrogDota 2

Gabe NewellCounter-Strike

Mike MorhaimeStarCraft II

Victor KislyiWorld of Tanks

Brandon Beck, Marc MerillLeague of Legends

Bobby KotickCall of Duty

?

THE ECCLESTONES

WCS 2012 EU FINALS

LOL S2 WORLD CHAMPIONSHIP

IEM KATOWICE

THE INTERNATIONAL 3

How games are turned into sport

KEY LEARNINGS

» One-off events don‘t work

» Running leagues is hard

» eSports is not an acquisition channel

» Not every game is a winner

» Always be balancing

BEST PRACTICES

» Be smart about your investments

» Evolve eSports features slowly, steadily

» Close collaboration with leagues

» Leagues create sustainable eco systems

COMMITMENT

» Free-to-play

» Matchmaking

» Custom Matches

» Anti-Cheat

THE GAME

LEAGUES

» Consulting

» Matchmaking aaS

» Anti-Cheat aaS

RESULT

» A potential sport

CREATION GRASSROOTS FORMATION OWNERSHIP

TOURNAMENTS

» Anorganic (40k$ annually / region)

» Weekly cups with monthly final

» Key questions: game mode, maps and team size

» Ongoing competition creates stories

RULES & REFEREES

RULES & REFEREES

» Leagues are methodic about rule setting

» League rule sets designed to form clans out of parties / loose teams

» If rules have to work around your balancing, you‘re doing it wrong

CLANS

CLANS

» Financial self interest

» Support many games, good as testimonials and consultants early on

» Various, large communication channels

» They want exposure and prize money

Measure of success

LIVESTREAMING

COMMENTATORS

COMMENTATORS

» Leagues have commentator stables

» Pro players, former pros, personalities, full time commentators, hosts

» Build up fresh faces

» In-house streamers

» Faces of your brand

» Hire known commentators for industry events (500$+ daily)

BUILDING THE GRASSROOTS

LEAGUES

» Making players ambitious

» Tournaments

» Rulebooks

» Clans

» Commentators

» Streaming networks

COMMITMENT

» eSports coordinator

» Balancing

» Streaming-Friendly

» Spectator mode

» Map editor

BUILDING THE GRASSROOTS

BUILDING THE GRASSROOTS

RESULT

» Ongoing league content

» Your first audience

» Good commentators

» Known players & teams

» Balanced game

SANCTIONED LEAGUES

» Different models: Hands-off, Co-branded, Co-Owned, Secretly funded

» 3rd party sponsorships

» Existing infrastructure

» Leagues operate globally, useful for entering new markets

» No ownership of league, still an investment

» 50k$-2m$ (depending on regional scale, team size, physical presence)

SANCTIONED LEAGUES

TV SHOWS

COVERAGE

PROFESSIONALSTREAMING

» Sanctioned leagues offer global event presence

» Pay attention to the details

» Leagues create the professional environment you‘ll claim

MEDIALIZATION

FORMING A SPORT

LEAGUES

» Sanctioned Leagues

» Sponsors

» Events

» Coverage

» Medialization

COMMITMENT

» eSports team

» Demo recording

» Team matchmaking

» Custom Match / Stats APIs

FORMING A SPORT

FORMING A SPORT

RESULT

» Outside investments

» Eco system

» Global infrastructure

» Audience

OFFICIAL LEAGUES

» Online & Offline league covering all major territories

» Developer hands-on with the details

» Centralized coverage

OFFICIAL LEAGUES

OWNING A SPORT

» Building a new business

» Companies change

» Own league and infrastructure

» Large-scale events

» New revenue streams open up

ESL ARENA

» Fixed studio environment

» Frequent global highlight events

» Support for Barcrafts & eSports Bars

PHYSICAL PRESENCE

HAPPY PLAYERS

PRO TEAMS

» Make the pro players really happy

» Help teams with visa and establishing physical presences

» Team houses are essential to professionalize

PLAYERS & TEAMS

» Livestreams reach critical mass

» Name brand sponsors

» Traditional TV desperate for young content

TOUCHING THE MAINSTREAM

» Sponsors

» Ads

» Tickets

» In-game merch

» Merch

» TV Licenses

REVENUE STREAMS

OWNING A SPORT

LEAGUES

» League services

» Production Services

» TV Licensing

» Sales

COMMITMENT

» eSports Unit

» Operational control

» Official league

» Contractors

» Player Management

OWNING A SPORT

RESULT

» A global, profitable sport

OWNING A SPORT

» We‘ll need Bigger Stadiums

» Player agencies

» Emerging Markets

» Many new competitive free-to-play games

OUTLOOK

THANK YOU !

@affentod

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