Event Recap: ESL One New York DotA 2 Championship

With Amazon’s billion-dollar acquisition of video gameplay-streaming platform Twitch, competitive video gaming, often called “eSports”, has matured into a multi-billion industry. And today, we experienced this phenomenon firsthand at ESL One New York, ESL’s second major Dota 2 tournament this year, held at Madison Square Garden Theater .

For some, it might be hard to imagine that people would actually pay over $60 just to watch other people play video games. But as Twitch’s success has proven, there’s definitely a market today for speculating digital gameplay. Video game tournaments have been around long before streaming services like Twitch brought it into mainstream spotlight, but all that added attention certainly doesn’t hurt. In fact, around a thousand enthusiastic game-lovers filled up the spacious venue.

As brands follow where the audience goes, eSports might just become the next frontier for marketers to explore. With help from a plethora of sponsors such as T-Mobile, Pizza Hut, Mad Catz, reed pop, and of course, Twitch, today’s event is professionally organized and legitimately marketable.

Why Video Games Are The New Blockbusters

With recent high-profile launches of video games such as Bungie studio’s Destiny, video games have completed their transformation from niche market to a burgeoning billion-dollar industry that could rival Hollywood. By emulating Hollywood’s more-is-more formula for box-office success, today’s hit video games blast into the scene with bombastic visuals, cinematic camerawork, and A-list celebrity cameos, all supported by their astronomical budgets. As the next generation of game consoles looks to take realism, immersion and interactivity in gaming up to new levels, the video game industry is set to bust more blocks.

Partner Spotlight: Unlockable

As a video ad platform that turns video content into games, Unlockable is using the idea of value exchange to reach users while rewarding them at the same time. The platform was just named a finalist at #NYCSTARTUP, co-sponsored by 212NYC and the New York Times, and will present at Ad Week on September 30th.

What is the Unlockable system?

Consumers aren’t always willing to pay for the content available on sites like Hulu or the Wall Street Journal, but with Unlockable, they can play a game to “unlock” it for free. The viewer clicks the Unlockable button (found alongside payment options) to play a branded game based on branded content—trivia, matching, or anything that allows the user to interact with the ad. Once complete, the content appears, at no financial cost to the user.

How does Unlockable have implications for mobile?

Unlockable also works on mobile games – if a player wants to buy more of something in the game (energy, gold, kittens), a branded game can be played instead of an actual transaction.

What is the advantage of opt-in games?

The key here is “value exchange”: give users something that’s worth their attention. Advertising is a happier and even welcome type of content when it gives the viewer something for their time. The user’s interaction with the brand’s game is a small price for premium content.

Why Amazon Wants Twitch

In an interesting turn of events, Amazon has officially closed a $970 million deal to acquire Twitch, after Google apparently dropped its billion-dollar bid a month ago. At first glance, the ecommerce giant and the live-streaming game platform have little in common, but a closer examination reveals that Amazon has been courting the gaming market for a while. It makes perfect sense: Twitch was increasingly running into licensing issues as it grew in size, and it needed a big partner to support its development, making Amazon a good fit.

If Google had closed the deal, Twitch would have predictably become YouTube’s “little brother.” At Amazon, however it has the chance to become the video mainstay due to its lack of user-generated or live video platform. And now that the acquisition has been made official, the online video landscape could be radically shifted.

EA Games Launches Subscription-Based Gaming Plan On Xbox

Following the footsteps of Kindle Unlimited, another company is getting Netflixified, as EA Games announces its plan to launch an all-you-can-play monthly subscription plan on Xbox. For just $5 per month and $30 per year, the service, aptly named EA Access, will allow subscribers unlimited access to a “Vault” of games that promises to feature all of EA’s best offerings, including Madden 25, FIFA 14, Battlefield 4, and Peggle 2. It is still early to tell if this move would boost the Xbox sales or disrupt the current business model of the gaming industry, but Steam, another major game distribution platform featuring subscription plans, sure can’t be too happy about this.

Update: Sony has reportedly rejected EA Access for the PS4 after evaluation.

Facebook Launches “Out-App Purchase” Ads

 

Instead of incarcerating in-app purchases inside the apps, Facebook has decided to break them out of that namesake prison by allowing its desktop games to sell virtual goods straight from ads in the News Feed or sidebar, with the intention to bring this feature to its mobile app in the near future. The move towards mobile, however, could turn out to be challenging, as both iOS and Android forbid in-app purchases to happen outside of their respective app stores, so as to protect their usual 30 percent cut on mobile purchases. Essentially, these would be Facebook’s existing re-engagement ads re-framed for driving immediate purchases, and how they could move over the hurdles to bring this to mobile would be an interesting development to follow.

E3 Recap: 5 Key Takeaways From This Year’s Show

The most significant development in gaming over the last few years has been the rise of the casual gamer. As eMarketer indicates, it is a category largely defined by the some 147 million US mobile gamers who look to Candy Crush and Fruit Ninja to pass the time. E3 is not about them.

Reserved for the core gamer, E3, or the Electronic Entertainment Expo is an event where gaming providers both large and small come to Los Angeles to showcase new technologies and products for computers, video game consoles, handheld systems, mobile and social. While the conference is chock full of announcements of new titles from gaming developers, this post will focus on the platforms and behaviors which are changing the way we experience media and gaming. Here are five developments that marketers and media companies should be aware of.

Xbox Snap Encourages Multitasking 

Much has been made of second screen experiences which have largely been marketing’s failed attempt to engage the some 60% of people who look at a secondary device during ad breaks according to our Second Screen POV. What we’re seeing currently is a trend towards multitasking on the first screen.  YouTube’s mobile UI and more recently Xbox’s continued support of Snap mode are great examples.

Xbox’s Snap function lets users run multiple applications simultaneously, like snapping the Parties app to chat with friends while you’re still playing a game. Voice controls are at the center of this functionality as users can request another application with their voice while still using the controller for gameplay. At this year’s E3, Microsoft announced Snap mode for Achievements which tracks in-game accomplishments while you play. Think of it like a real-time scoreboard with the ability to track and share progress without leaving the game. More interesting is the help function which will scan the web for articles and videos that will offer tips to reach your goals. This is the beginning of media and gaming intersecting as we marry traditional web content and gameplay within a single view.

Amiibo Breathes Life Into NFC?

NFC has tremendous potential to seamlessly connect physical and digital worlds with a simple tap. But with hardware compatibility issues and a lack of consumer adoption, will it go the way of the QR Code? Nintendo thinks not as it is rolling out NFC functionality that connects plastic figures with gameplay to change the way you interact with Nintendo characters and games. Dubbed Amiibo, the platform will debut on select games on the Wii U as players can tap the figures to the Wii U gamepad to bring them to life in the game. In the Super Smash Bros example, you can tap any figure to watch it battle within the game, alongside you or with you simply watching from the sidelines. The characters are all unique and customizable and their gaming history is collected and stored.

Playstation TV Creates A Mobile Living Room

Just when you thought you had a handle on all the over-the-top platforms, Playstation announces the North America release of Playstation TV. The $99 device will stream PS Vita and select PS 3 games to your TV in addition to supporting media services like Hulu and Netflix. More importantly, it enables remote play for current PS4 owners who can stream games to additional TVs without the need to move their main console. This is a serious improvement in mobility and with YouTube coming to the Playstation platform this fall, expect continued growth for Sony’s video game consoles.

Eye Tracking For Gaming Is Just The Start

SteelSeries is showing off its new Sentry Eye Tracker, a device designed to track where a gamer looks while playing. This primary function can offer insights when training for gaming tournaments, but it is promising in a much wider range of fields.  Tobii, a Swedish company that supplies the tracking technology for the Sentry, sees its technology being used to assist people with disabilities, conduct academic research, and track attention for market research.  It is likely we will soon see PCs coming to market with this sort of technology baked in, so it stands to reason that we will be seeing more and more applications of eye tracking in the next few years.

Twitch And The Rise Of Spectator Gaming

Did you know that video network Twitch has 45 million monthly active users who tune in to watch live streams of people gaming? In fact, there are currently 85,000 tuning into League of Legends right now. Most of these streams are as much about the gameplay as they are about the gamer who simultaneously broadcasts a view of themselves via their webcam. This phenomenon is so prevalent that Google is rumored to be in talks to acquire them for $1 billion.

What Twitch teaches us is the importance of live experiences. In today’s on demand world there is still a desire, likely more than ever to be “in the moment.” There needs to be that sense that if you blink, you’ll miss out which is exactly what Twitch provides to the gaming audience. And Twitch isn’t the exception. In fact, major events are also experiencing growth like the Oscars which has achieved the highest household ratings in nine years. Expect gaming to continue this trend and support more social functionality.

 

IPG Lab Poll: Virtual Reality Interest

Virtual reality is becoming real with the addition of Facebook-owned Oculus Rift and Sony’s Project Morpheus which leads one to wonder what other use cases we might see beyond gaming. Could this change the face of media experiences, shopping and travel? The Lab surveyed 300 people, asking them to indicate which, if any, of the following Virtual Reality applications they would like to try. The results may surprise you.

 

vr

 

Playstation TV Coming This Year

Just when you thought you had a handle on all the over-the-top platforms, Playstation announces the North America release of Playstation TV. The $99 device will stream PS Vita and select PS 3 games to your TV in addition to media services like Hulu and Netflix. More importantly, it enables remote play for current PS4 owners who can stream games to additional TVs without the need to move their main console. 

Gamers Watching Gamers Play Games: Twitch & The Power Of Live Viewing

Did you know that video network Twitch has 45 million monthly active users who tune in to watch live streams of people gaming? In fact, there are currently 85,000 tuning into League of Legends right now. Most of these streams are as much about the gameplay as they are about the gamer who simultaneously broadcasts a view of themselves via their webcam. This phenomenon is so prevalent that Google is rumored to be in talks to acquire them for $1 billion.

Is this behavior voyeuristic? Yes. Is it lonely? Possibly. Is it surprising? Not so much. There is actually quite a bit Twitch can teach us about ourselves.

Arcades And Shared Experiences 

At first glance Twitch’s growth seems unfathomable but this behavior is actually nothing new. As Slate does a great job pointing out, Twitch harks back to the old arcades where people would congregate to play games as much as to watch others play, peering over to take in the action of Pong or Pac Man. This is the same behavior as Twitch, but in this case technology is enabling it at a far greater scale. And it’s not social in the same way as Facebook or Twitter. This is about shared experience not sharing your experience and I think that is an important distinction.

The Power of Live Events

What Twitch teaches us is the importance of live experiences. In today’s on demand world there is still a desire, likely more than ever to be “in the moment.” There needs to be that sense that if you blink, you’ll miss out which is exactly what Twitch provides to the gaming audience. And Twitch isn’t the exception. In fact, major events are also experiencing growth like the Oscars which has achieved the highest household ratings in nine years.