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