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06/29/23: The U.S. Federal Trade Commission’s battle with Microsoft continued this week


 

Medias First Morning Read
Thursday June 29, 2023

Good morning! It’s Thursday and this is your early morning Esports and Gaming brief.

The U.S. Federal Trade Commission’s battle with Microsoft continued this week, with both parties sparring over the legality of Microsoft’s $68.7 billion acquisition of Activision-Blizzard. The proceedings have sparked a number of revelations, such as Sony’s move to make upcoming Bethesda title Starfield exclusive to PlayStation – leading to Microsoft buying the developer outright – and Sony Interactive Entertainment CEO Jim Ryan admitting in an internal email that he didn’t see the acquisition as an “exclusivity play.”

Along the way, Microsoft Gaming CEO Phil Spencer made a commitment under oath that Call of Duty would not become platform-exclusive and noted that the true prize for Microsoft might be the mobile gaming trove that is King Digital Entertainment, another publisher under the Activision brand that has Candy Crush Saga, Arena of Valor, and other high-grossing mobile titles under its umbrella.

The mission for both parties is clear: Microsoft is attempting to establish its message that it’s a distant third in the “console wars” between itself, Sony and Nintendo, and that the ABK acquisition would not dramatically shift the market. The FTC, meanwhile, aims to dispel that narrative and show how Microsoft’s advantage in cloud gaming, alongside scooping up the CoD, World of Warcraft, Diablo and Overwatch publisher, will tilt the gaming landscape too far in the favor of what is already a tech giant.

Proceedings will wrap up Friday, with the result determining whether an Aug. 2 injunction by the FTC has merit. If so, the acquisition will be put on hold past its July 18 deadline, which will trigger a $3 billion penalty payment for Microsoft to ABK for not closing the deal and a period of renegotiation between the two parties to see the deal done internally once again.

COMPETITION AND GAMING NEWS

Nintendo brought the heat during its latest Direct showcase, with announcements for multiple heavy hitters among its main IP, a remake of one of the popular Super Mario RPG and, yes, an elephant version of the titular hero in new title Super Mario Bros. Wonder. The at-times-whimsical, often surprising showcase also provided more details on two expansions for Pokémon Scarlet and Violet, which are both scheduled to release in 2023, and a Nov. 17 release for Super Mario RPG’s long-awaited return stunned fans. Other highlights included a standalone game for Mario’s longtime love interest in Princess Peach (scheduled for 2024), a Detective Pikachu sequel (Oct. 6, 2023), a Luigi’s Mansion: Dark Moon port (late 2023) and more. Looks like the fall could be as busy as this summer, with top-tier IP competing in what’s been the best year for gaming fans in recent memory.

Final Fantasy XVI has sold 3 million units worldwide following its June 22 release date, according to developer Square Enix. The 16th mainline title in the storied role-playing game franchise was met with mixed reviews as it pivoted away from open-world exploration and some RPG elements in favor of a more action-adventure style, but the game managed to push Legend of Zelda: Tears of the Kingdom off the top of the boxed sales charts in the U.K.

FIBA has joined the NBA 2K League to provide international pathways to esports. The multiyear deal with the International Basketball Federation highlights the development of eFIBA events by opening doors for regional talent, establishing a national team competition system and offering eFIBA participants the chance to bridge their talents to NBA 2K League events or the NBA 2K League Draft. The calendar includes Qualifiers, four Regional Finals and the annual eFIBA World Finals.

Joseph “Jos x 10” Olmstead was crowned the EA Sports NHL 23 World Champion. After defeating North American and European competitors, including three of the world’s top CHEL players, Jos x 10 took home the $28k prize for the first time since 2019.

REV/XP PRESENTS
In this episode of REV/XP Presents, Senior Vice President Chris Mann is joined by XSET Co-Owner and Chief Culture Officer Erin Ashley Simon. Erin’s love and passion for video games, sports, music, and content have helped to shape who she is today, pushing the culture forward and breaking barriers as a female in the industry. Erin shares how XSET is driving culture in gaming and the unique brand opportunities the organization presents.

SPONSORSHIP & ACTIVATION

Fandom, Paramount+ and Electronic Arts are partnering to bring the Fandom Party back to San Diego Comic-Con for the sixth year. The partners, along with sponsors Z2 Comics and Pinfinity, will take over the Hard Rock Hotel on July 20, the opening day of the internationally renowned convention. Paramount+ will activate at the event with its Star Trek: Strange New Worlds and Yellowjackets IP, while EA will bring to life Immortals of Aveum, a first-person shooter game published by EA that will also release on Day 1 of Comic-Con.

Saudi Esports Federation adds Razer as Gamers8 festival sponsor. The announcement of the continued partnership with the gaming peripherals company secures Razer as the gaming gear partner of Gamers8: The Land of Heroes, which will take place in Boulevard Riyadh City for eight weeks, starting July 6. The festival will feature esports tournaments, live concerts and other activities.

PepsiCo also joins in for Gamers8. The beverage and food corporation will be the exclusive water, beverage and snacks partner for the upcoming Saudi Arabian festival. Brands such as Pepsi Zero Sugar and Doritos, as well as over 1.5 million bottles of Aquafina water, will be available onsite at the event.

STREAMHATCHET

XQC’S AVERAGE VIEWERSHIP 23% LESS ON KICK IN FIRST 10 DAYS

The newest live-streaming platform on the market, Kick, has been gaining traction among creators with their desirable 95/5 revenue split. Recently signing Twitch top creators, xQc and Amouranth, to non-exclusive deals has helped the platform gain considerable attention in recent weeks.

So far in his first 11 days post-Kick deal, xQc has streamed 10 of those days, both on Twitch and Kick. His average viewership on Twitch was 62.4K viewers, but in the same time period on Kick, his numbers were slightly depressed at 48.1K, a drop of 23%. His peak viewership hovered around the same metrics, with 88.2K on Twitch and 86.6K on Kick.

Read more on Stream Hatchet’s blog.

2023 Tempest Awards

Have you heard the news? New Hall-of-Famer Announced!

Join us at this year’s Tempest Awards to honor the one and only Amber Dalton, Senior Director of Global Events at Twitch! Amber is a pioneering force in esports and gamer marketing, and we can’t wait to have her headline the many industry legends we’ll be honoring this fall! Enter now to be a part of this unforgettable night:

ENTER NOW

YOUGOV LIVING DATA INSIGHTS

Which type of games to US teens play?

YouGov Teen Profiles data shows that well over half of American teenagers play video games for at least an hour each week – but which genres most catch their fancy? Nearly half of them play action/adventure titles (48%), giving it a comfortable lead over other genres in the popularity stakes. Roughly a third of them also play fighting titles (32%), while battle royale (31%) and FPS games (30%) follow closely.

TEAMS

Longtime Call of Duty pro Octane retires and becomes a content creator. With nine Championships under his belt and one ring, Sam ‘Octane’ Larew has played for some of the industry’s top teams, including OpTic Gaming and 100 Thieves, before the CDL. In his final year, the veteran helped secure the title of Team of the Year, ending with a 1.06 overall K/D. In the video announcement, he said, “Spending time with my family, going home, and having that personal thing I haven’t had my entire life” has become more of a priority.

MrBeast could join other content creators as an esports team owner. YouTube creator Jimmy ‘MrBeast’ Donaldson has expressed interest in joining the North American Challengers League scene, the second tier of North American League of Legends. MrBeast first revealed his interest last year, when discussing the possibility of buying a slot in the LCS. “Oh, yeah, 100 percent,” he said. “The question is when. When we do it, I want to have a team that makes it to a stage like this.”

INDUSTRY

Meta has launched a VR subscription service known as Meta+, the Facebook owner announced, with two titles each month for users at $7.99 per month or $59.99 per year. Players will get to keep the games they receive throughout their Meta+ subscription period, the company said, as Meta attempts to add more utility to its hardware and software offering through a service similar to traditional gaming companies like the Big 3 of Sony, Nintendo and Microsoft.

The Entertainment Software Association said it is exploring solutions for its E3 conference following information from the City of Los Angeles showing the gaming event is not on the city convention slate for 2024 or 2025. “We expect E3 to continue to be a part of ESA’s storytelling,” ESA said in an internal memo to members obtained by Axios, “and are currently in conversation with a number of stakeholders about what E3 2024 (and beyond) should look like to best serve the interactive entertainment industry.”

More than half of Roblox, The Sims and Among Us players identify as girls/women, according to data from consumer research firm Circana. The information, provided by Circana Executive Director & Video Game Industry Analyst on Twitter, also showed that the majority of Pokémon Scarlet and Violet and Hogwarts Legacy players are women. The Roblox mention, given the game’s backbone of user generated content and metaverse-style activations, provides proof that women are not just engaging with but are part of the foundation of what could be the next iteration of gaming, while the demographic’s majority stake in several highly trafficked IPs reinforces that being a gamer is more gender-agnostic than ever despite the toxicity and other obstacles women often face within gaming communities.

Collegiate Sports Management Group and ESPORTSU, in collaboration with Esports Foundry, are launching the ACE (Accelerating College Esports) Program. The initiative focuses on three areas – Program 365 Build, Esports Development, and Scholastic Esports Commercialization – providing a holistic approach that caters to every aspect of gaming and esports programs for facilities in colleges nationwide. “With the ACE Program, colleges and universities can captivate, engage, and retain students by meeting the rising demand for gaming and esports on campus,” said Angela Bernhard Thomas, Chief Esports Officer for CSMG/ESPORTSU. “The true power of ACE lies in its ability to expand enrollment strategies within STEAM-related subjects, creating new pathways for students pursuing careers in these fields. Moreover, it invigorates student engagement and fosters active participation in campus life, shaping a compelling educational experience.”

Esports Gaming & Business Summit

90% of Gen Z are gaming enthusiasts- what are you doing to take part in this global phenomenon?

In a recent study by PwC, the gaming and esports industry is expected to gross over $325 billion in annual revenue by 2026. It’s time to capitalize on the world’s fastest growing industry and find the marketplace’s beating pulse, right at Esports Gaming & Business Summit this fall. Purchase your pass today:

PURCHASE MY PASS

TRIVIA
Last week aside, it’s been a while since a mainline Final Fantasy game came out. When was Final Fantasy XV released? (Email [email protected] with your answer, and be sure to include your name, company and city).

Answer to Our Last Trivia Question
Which players make up the new Big 3 for the NBA’s Phoenix Suns? Answer: Kevin Durant, Devin Booker and Bradley Beal. Kudos: Travis Wacker | ESPN Chicago/Good Karma Brands, Chicago; Tom Moore | Kalt Productions, Los Angeles; David Westberg | SAG•AFTRA Federal Credit Union, Burbank, California; Jim Himmel | TCB Media, San Clemente, California

Cynopsis Team

Lynn Leahey
Editorial Director
@Lynn_Leahey

Kerry Smith
Division President
Access Intelligence

Robbie Caploe
VP/Group Publisher
@robertacaploe

Executive Director of Sales
Jon Mcloughlin
212-621-4698?
Cynopsis Job Listings Sales
John Cox

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