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Patapuf

Member
Oct 26, 2017
6,407
And the international
Overwatch has low viewership? And how does Fortnite have huge investments? Orgs are basically investing nothing into the scene.

Edit: lol all the shots people are taking at OW is something else. At the end of the day they seem to be doing very well. I thought for sure viewership would drop this year and it increased by 30%.

Low for the amount of money that´s being spent. That´s what seems disproportionate.
 
Feb 24, 2018
5,221
Re-reading it, one bit ticks me off:

"To sponsors, advertisers, team owners, and the rest of the investors pouring money into esports, the industry has a great thing going for it: those supposedly massive viewership numbers, which are said to be packed with a hyper-specific and highly attractive consumer group: 16- to 24-year-old men. When Sebastian Park got into the industry after working in tech, he was excited about one thing in particular: "We were like, 'We don't even have to do targeting!' Everyone is male and 18-34 in this community!""

That is the VP of Esports for the HoustonRockets & ClutchGaming, if you ever wonder why Esports and Competitive gaming treats women like s*** and in some cases, openly allows sexism and harassment, it's because the people in charge think we don't exist... *sighs*
 

smurfx

Banned
Oct 25, 2017
10,578
seems like people have been throwing money at e-sports for the longest because it will eventually make money but that day doesn't seem like it's going to be here anytime soon. the best strategy seems to be building an esports league and then selling it to some corporation looking to diversify and let them take the bath.
 
Oct 27, 2017
12,975
The concept of e "sports" has always been one that doesn't appeal to me and comes off as something you couldn't pay me to be interested in. I wouldn't miss it and the crowd that comes along with e "sports" if the bubble does indeed pop.
 

clemenx

Banned
Oct 27, 2017
476
Venezuela
I don't see the big 3 of Dota, CSGO and LoL ever dying tbh at least not short-mid term.

I've never cared about OWL so I can't say. Can it be added to those 3 or not?
 

Big-E

Member
Oct 25, 2017
3,169
Dota I don't think is really healthy. The International works because it is crowd sourced. All the other tournaments this year have been kind of low budget and I would not be surprised if dota tournaments are really scaled back.
 

SmokeMaxX

Member
Oct 25, 2017
2,336
Re-reading it, one bit ticks me off:

That is the VP of Esports for the HoustonRockets & ClutchGaming, if you ever wonder why Esports and Competitive gaming treats women like s*** and in some cases, openly allows sexism and harassment, it's because the people in charge think we don't exist... *sighs*
I don't think he's saying that people in other demographics don't exist. It's just known that for whatever reason, that particular demographic is the most valuable one to advertise to so they don't have to spend money trying to figure out how to target it.
 

spootime

The Fallen
Oct 27, 2017
3,429

Quotes I found interesting:
NewZoo analyst Jurre Pannekeet, who sees the revenues for 14 esports teams, says the majority of teams are operating at a loss, but declined to say how much on average, citing nondisclosure agreements. When pressed whether that majority was closer to 51 percent or 90 percent of teams operating at a loss, he said: "If you looked into it, it's probably closer to 89 percent than 50 percent."

"We're not comparing the right things to each other," he said. "In our industry, the reporting numbers generally come from publishers themselves or from teams or organizations who are self-interested. Those incentives may cause issues." Last year, he said, one analytics organization was reporting that the Houston Rockets' mid-season invitational viewership numbers were 126 million at their peak, which was 6.5 times higher than what they actually were. "We had to immediately go out there and refute that. That's 6.5 times higher than what we actually saw. The number we saw at peak. We were proud of it. We went up 22 percent every year."

On the other hand, as better standards begin to roll out, there will always be loopholes for desperate actors. Last month, Magic: The Gathering put on its biggest esports event yet to debut its brand new pro league: a $1 million tournament at Boston's PAX East convention. At first, viewership on Twitch hovered at around 20,000—a pretty typical amount of viewers for a pro Magic tournament on a weekday. Suddenly, in the afternoon, something miraculous happened: viewership quadrupled to a remarkable 88,000.

According to a source with knowledge of publisher Wizards of the Coast's sponsorship strategy, that huge jump in viewership wasn't a surprise. "Wizards has been pitching the Mythic Championship to potential sponsors for the future and was very confident they would get close to 100,000 viewers," the source, who asked to remain anonymous for fear of professional repercussions, told Kotaku. "We thought it was weird given the historical viewership of the game."

Last year, the Overwatch League grand finals sold out New York's Barclays Center, a 19,000-seat venue. It was a good sign for the culminating event of Blizzard's international, multi-million-dollar esports league's first season. I attended the show myself, and I did notice that the seats were mostly occupied by enthusiastic fans. Online, however, something else was happening. Across the internet, the Overwatch League grand finals' livestream was embedded across the internet on Reddit, IMDB, Gamepedia, and other sites. A source familiar with Curse's sales operations told Kotaku that the company was behind it. "We had never done a tournament that size," he told me. "We did some Gwent tournaments, Madden, Fortnite," he said over the phone. "When we turned that on, we saw the livestream go from 100,000 to 300,000." He noted that it was one of the most heavily promoted events in esports, even airing on ESPN, which could account for the substantial interest.

Two sources confirmed that Curse charged $15,000 an hour to embed streams across their network of sites. In the past, that number was $10,000 per esports tournament.

According to data published by esports reporter Rod Breslau, hours into broadcasting, the Tekken event's Twitch viewership spiked from 6,000 to over 50,000 within the course of thirty minutes. Red Bull did not respond to Kotaku's request for comment.

"Esports may be a bubble, but it's correcting itself toward influencers," said one longtime esports professional, who spoke anonymously for fear of career repercussions, and who now works in the influencer industry. Fans prefer to follow their favorite pro player rather than a whole esports team, another deviation from the traditional team sports model. And successful streamers can make a lot more money from fans and sponsorships on Twitch than they can grinding away for an esports team.

Very interesting article from Kotaku about the esports industry and the potential bubble its facing. Tldr;
  • esports teams are massively unprofitable
  • industry growth is overinflated when reported by analyst groups like NewZoo
  • Big publisher leagues like LCS and OWL(maybe?) are unprofitable.
  • The viewership statistics published by Riot and other groups are basically bullshit
  • Websites like curse use hidden embedded streams in their gaming wiki pages to inflate twitch viewership statistics. The article claims they charge 15000 an hour to inflate stream viewership and have done so in PubG, Tekken, Overwatch, and other games.
  • Finally, stream influencers are short-circuiting esports growth, with players like tfue and ninja able to grab 200k concurrent viewers at a time (bigger than a lot of esports tournaments)

If any of you were around for CGS back in 2007, you'll know that esports has had some crazy bubbles before. Are we heading towards another one? I'm not a VC but it's pretty hard for me to imagine that a COD esports franchise spot is worth 60 million.
 

Delphine

Fen'Harel Enansal
Administrator
Mar 30, 2018
3,658
France
Honestly, let that bubble pop. Same for streamers, the amount of money and shady business that it must hide, ugh. Let that pop too.
 

funky

Banned
Oct 25, 2017
8,527
Yeah I said it before but it just seems a bunch of blind investors chasing a trending buzz word without any idea how this can generate any kind of ROI and a bunch of shadey event organizers and game publishers perfectly happy to take the money
 
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BAN PUNCHER

Banned
Oct 26, 2017
4,945
giphy.gif
 

Rodjer

Self-requested ban.
Member
Jan 28, 2018
4,808
This is only related to OW, Fornite and LOL.

CS:GO and Dota 2 eSports scene is nowhere near these levels and i highly doubt that EVERY eSport ORG is massively unprofitable lol
 

Kyougar

Cute Animal Whisperer
Member
Nov 3, 2017
9,354
I think unnatural eSport growth will bust in the next years. (meaning: big publishers pushing for esport when the game hasn't even proven itself or there are not big viewer numbers.

eSport "from the bottom" will still be profitable (a game gets popular and eSport grew from the players and not from the publisher)
 

Spaltazar

Banned
Oct 28, 2017
2,105
uhh embedding hidden streams in sites to push viewership numbers sounds like a good ground for suing. i doubt sponsors signed up for these kind of fake numbers
 

Professor Beef

Official ResetEra™ Chao Puncher
Member
Oct 25, 2017
22,498
The Digital World
Not a matter of if, but when.

Gonna read through this later during my lunch break, it was pointed out to me on Twitter by some FGC members but then I lost the link.
 

Deleted member 36578

Dec 21, 2017
26,561
I've always figured the push for esports was too much to soon. It didn't naturally get to the point it's at now whatsoever. These are the repercussions of greedy companies trying to force it.
 

Nome

Designer / Self-requested ban
Banned
Oct 27, 2017
3,312
NYC
Riot's always seen eSports as an extension of their marketing and community. Profitability is less important than engagement.
Blizzard's been trying to sell OWL as an actual profitable venture, on the other hand.
 

RedHeat

Member
Oct 25, 2017
12,684
Last year, the Overwatch League grand finals sold out New York's Barclays Center, a 19,000-seat venue. It was a good sign for the culminating event of Blizzard's international, multi-million-dollar esports league's first season. I attended the show myself, and I did notice that the seats were mostly occupied by enthusiastic fans. Online, however, something else was happening. Across the internet, the Overwatch League grand finals' livestream was embedded across the internet on Reddit, IMDB, Gamepedia, and other sites. A source familiar with Curse's sales operations told Kotaku that the company was behind it. "We had never done a tournament that size," he told me. "We did some Gwent tournaments, Madden, Fortnite," he said over the phone. "When we turned that on, we saw the livestream go from 100,000 to 300,000." He noted that it was one of the most heavily promoted events in esports, even airing on ESPN, which could account for the substantial interest.

Two sources confirmed that Curse charged $15,000 an hour to embed streams across their network of sites. In the past, that number was $10,000 per esports tournament.
God damn, that's some shady ass shit.
 
Oct 26, 2017
912
This is only related to OW, Fornite and LOL.

CS:GO and Dota 2 eSports scene is nowhere near these levels and i highly doubt that EVERY eSport ORG is massively unprofitable lol

Yeah, Valve has a really hands off approach (more so with CS than DOTA2, cause of the international) and let external companies organize and invest in tournaments.

I think this also let's it get a more natural growth. CSGO viewership seems legitimate to me, personally speaking.
 

spootime

The Fallen
Oct 27, 2017
3,429
Honestly, let that bubble pop. Same for streamers, the amount of money and shady business that it must hide, ugh. Let that pop too.
I'm not sure that streaming is necessarily a bubble. At the very least, the subscriptions and donations they receive arent. Streaming is here to stay.

This is only related to OW, Fornite and LOL.

CS:GO and Dota 2 eSports scene is nowhere near these levels and i highly doubt that EVERY eSport ORG is massively unprofitable lol

Yeah - its important to note that people have been paying CS and Dota players to play videogames for close to 15 years now.

the OG:

hqdefault.jpg


Yeah, Valve has a really hands off approach (more so with CS than DOTA2, cause of the international) and let external companies organize and invest in tournaments.

I think this also let's it get a more natural growth. CSGO viewership seems legitimate to me, personally speaking.

Yeah, its consistent. Even in 2006-2007 there were 40-50k people watching CS through in-game spectating and listening to casters on shoutcasting radio sites (no streaming back then).

I've come to respect valve's hands off approach to their esports.
 

spootime

The Fallen
Oct 27, 2017
3,429
What's interesting is if you compare OWL to other esport events viewers. Here's a League of Legends broadcast and you notice how viewers are constantly leaving as games end and it goes to analysis desk, commercial breaks or viewers are only showing up for their favourite team.

66xbtzM.jpg


Meanwhile here is OWL which somehow manages to maintain a flatline for a 7-hour broadcast.

blR3S8K.jpg

Damn... that's actually a really interesting graph and backs up what the article was saying about embeds.
 

Nome

Designer / Self-requested ban
Banned
Oct 27, 2017
3,312
NYC
What's interesting is if you compare OWL to other esport events viewers. Here's a League of Legends broadcast and you notice how viewers are constantly leaving as games end and it goes to analysis desk, commercial breaks or viewers are only showing up for their favourite team.

66xbtzM.jpg


Meanwhile here is OWL which somehow manages to maintain a flatline for a 7-hour broadcast.

blR3S8K.jpg
This is super interesting. Nice digging!
 

Nome

Designer / Self-requested ban
Banned
Oct 27, 2017
3,312
NYC
one explanation is that they are using battle.net client embeds and people are counting as viewers without even knowing, another is that they are using wiki embeds or another is the viewers just like it so much and never leave.
So I'm watching Narcos right now and Googled Pablo Escobar.
I clicked a link and this is one hell of a coincidence but...

EZKy4Ru.png
 

Deleted member 40102

User requested account closure
Banned
Feb 19, 2018
3,420
I really doubt it, it would only increase with the new generations since most of the new generations relaying a lot on watching pros playing games and those kids love it when their favorite pro compete on main tournaments. This shit will only grow from here, but sure it won't be one game. Esport bubble will bounce from game to game.
 

Lkr

Member
Oct 28, 2017
9,506
Don't think "eSports" bubble is gonna pop as a whole, that's like saying "the Sports bubble is gonna pop", individual games tho? totally could happen, but there will always be a place for professional gaming.

Like, i absolutely can't fathom EVO ever going away, for starters.
I don't think pro gaming as a whole will go anywhere, just as pro sports conceptually won't go anywhere. But there is a sports media bubble waiting to burst. The sports leagues are all in bed with cable companies to make revenue off of airing actual events, but cable subscriptions are only decreasing.
I think this bubble is a lot like that one. The events aren't going to go away, but there will be casualties (leagues merging, sponsorship changes, broadcast rights, etc)

Btw I see a lot of confusion in here about bubbles. Things can still be popular if a bubble bursts. Housing and property investment didn't go away after the housing bubble burst, it came back stronger than ever. There were survivors of the dot com crash, and they have the industry by the throat now. Bubble bursting in this context will mean esports is going to change A LOT over the coming years as it grows, as is to be expected.
 

capitalCORN

Banned
Oct 26, 2017
10,436
Overwatch League and CoD are going to be in big trouble soon.
People say this about OWL, but I see it surviving. OW has actually garnered an intensely loyal fanbase that's not just dedicated to the game, that would be typical, but to the mythos itself. I see it continuing well beyond any foreseen collapse that people have wrought. At worst, It will cocoon into what other legacy Blizzard games have become like SC2 and WC3.
 

Escaflow

Attempted to circumvent ban with alt account
Banned
Oct 29, 2017
1,317
Individual games might pop but esport as a whole will still be around as long as gaming is relevant and the viewership is there . People can actually watch CS:Go tournament so there should be no worry on the lack of interest :P
 

Toxi

The Fallen
Oct 27, 2017
17,547
"Streamers and influencers have short-circuited esports," says ELO Entertainment's Sabina Hemmi. Twitch celebrities like Ninja seem able to get more viewership than entire esports tournaments, with significantly lower costs, streaming their favorite video game from their bedrooms. A relatable, attractive, and charismatic gamer taking a sip of a Red Bull between Fortnite matches might have more impact on Red Bull as a company than a couple of esports pros wearing a jersey with the company's logo.

...

"Esports may be a bubble, but it's correcting itself toward influencers," said one longtime esports professional, who spoke anonymously for fear of career repercussions, and who now works in the influencer industry. Fans prefer to follow their favorite pro player rather than a whole esports team, another deviation from the traditional team sports model. And successful streamers can make a lot more money from fans and sponsorships on Twitch than they can grinding away for an esports team. "I'm sure [League of Legends streamers] Tyler1 or Yassuo make more money than a pro," he said. "That's a reason why LoL salaries are so high."
The move towards "influencers" in advertising is depressing and incredibly toxic to the video game community in the long run.

It's also remarkably shortsighted; countless games are trying to court the same few people and inevitably those people will only go for whatever generates the most views.
 
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Inugami

Member
Oct 25, 2017
14,995
I've actually been watching fewer and fewer esports tournaments the bigger they've gotten. Maybe not intentionally... but for me it's been more fun to watch the smaller scene stuff. For example, Link to the Past Randomizer has a daily race. Final Fantasy 4 Free Enterprise has monday community races as well. Both of these also have 'season' long tournaments that are a blast to watch and communicate with the runners in their discords and stuff.

It's more personal, it's more involved. The communities are smaller and more tightknit, but also very welcoming to new comers. I'll never be a top randomizer runner, but the fact that I can actually get some one on one discussions with these people means more to me.
 

Lulu

Saw the truth behind the copied door
Banned
Oct 25, 2017
26,680
FGC's players are the first ones to get dropped off a team more than anyone. There is hardly an incititive for teams to sign them with income from them being peanuts.
The one benefit over the others that the FGC has is that it's always been self sustaining and grassroots. It won't go anywhere.
 

demosthenes

Member
Oct 25, 2017
11,587
The only ones I see surviving are the FGC, LoL, Dota2 and CSGO.

Overwatch League and CoD are going to be in big trouble soon.

Starcraft: BW and SC2 likely aren't going anywhere unless Blizzard goes crazy. Scene is actually growing again and the amount of content out there is insane. From like 14-15 there was an exodus of teams with ProLeague shutting down in 2016. Players with teams has been increasing and new leagues are popping up with prize pools and viewership increasing again.
 
Oct 27, 2017
1,665
ESPN airing Esports never made sense to me, How big could the demographic of people be who want to watch esports but have not cut the cable cord?
 

Elfforkusu

Member
Oct 25, 2017
4,098
Dota I don't think is really healthy. The International works because it is crowd sourced. All the other tournaments this year have been kind of low budget and I would not be surprised if dota tournaments are really scaled back.
In some sense the grassroots stuff is not really as vulnerable to the bubble, because it's not being propped up by the bubble. Grassroots scenes will (unfortunately) suffer *some* collateral damage if/when the bubble pops, since e-sports orgs won't be throwing (as much?) money their way -- but they aren't getting much from e-sports orgs to begin with, relatively speaking.

The real question is what happens when the clock hits midnight for the e-sports that are clearly unsustainable marketing stunts