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09/14/23: FaZe Clan’s Board of Directors has terminated CEO Lee Trink

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Medias First Morning Read
Thursday September 14, 2023

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

FaZe Clan’s Board of Directors has terminated CEO Lee Trink as the organization continues to struggle on the public market. Trink, who was brought in as an advisor for FaZe in 2016 prior to his appointment as CEO in 2018, will be replaced in the interim by FaZe COO and CFO Christoph Pachler.

While Trink oversaw the buildup of FaZe to its landmark leap to the Nasdaq in 2022 as part of a SPAC merger with B. Riley Principal, he was also at the helm for FaZe’s nosedive from around $15 per share during its September debut to below $0.20 per share this month. FaZe’s freefall is perhaps the best example of larger-than-life budgets meeting more realistic market expectations, and in the midst of a down year for esports and gaming, things have gone from bad to worse for one of the world’s best-known gaming lifestyle organizations.

So, what’s next for esports? How does competitive gaming, and gaming in general, bounce back from a year defined by layoffs, closures, and harsh reality checks? We’ll be discussing just that at the Esports & Gaming Business Summit from Oct. 22-24 in Las Vegas. Want to be part of the conversation, network with the biggest decision-makers in the business and learn about the path forward? Get your tickets HERE.

COMPETITION AND GAMING NEWS

G2 Esports League of Legends pro Rasmus “Caps” Winther won his 10th domestic title following a League EMEA Championship title on Sunday. Caps, one of the most decorated players among North American and EMEA League of Legends pros, hit double digits in the LEC with a win over G2’s longtime rival, Fnatic, in the LEC Season Final. Caps, at just 23 years old, is only matched by the League of Legends GOAT Lee “Faker” Sang-hyeok in domestic titles over his career. The Denmark native will look to accomplish one feat he’s never been able to this season when G2 heads to the League of Legends World Championship later this year.

TSM won the Apex Legends Global Series Championship this weekend following an intense final day of competition that saw multiple teams one win away from the title. TSM, which won the ALGS Split 1 playoffs this year and was the runner-up in Split 2, earned several accolades alongside the championship, with player Evan “Verhulst” Verhulst being recognized with the EA Positive Player award and one of the world’s best Apex Legends players, Phillip “ImperialHal” Dosen, earning MVP honors.

Massive fighting game franchise Mortal Kombat gets its next release today, with Mortal Kombat 1 launching for Premium Edition buyers and for the general public on Sept. 19. NetherRealm Studios’ marquee title will reset the series entirely, with familiar characters but a start-from-scratch approach to the lore and plot of Mortal Kombat. The fresh start, combined with next-generation graphics and overwhelmingly positive reactions to gameplay teasers so far, set MK1 up for a fight with Street Fighter VI for best fighting game of the year.

Borderlands developer Gearbox Entertainment might soon find itself under different ownership, as parent company Embracer Group considers options for cost-cutting amid a difficult year, according to Reuters. Embracer Group, which saw a multi-billion dollar deal with Savvy Games Group reportedly fall apart in the final hours late last year, has been looking for ways to cut back spending, including the sale of the Remnant 2 publisher – just a couple months after Gearbox’s and Gunfire Games’ release hit 1 million sales in less than a week following its release.

SPONSORSHIP & ACTIVATION

Enthusiast Gaming is working with Netflix and Metavision on an Unreal Editor for Fortnite project focused on anime-turned-live-action show One Piece. The live action version of One Piece began airing on Netflix on Aug. 31, and Enthusiast’s activation, alongside Fortnite Creative studio 3D Lab, will use the popular battle royale title’s sandbox to recreate pirate ship battles similar to the swashbuckling story of One Piece. The game mode was featured on EG’s NFL Tuesday Night Gaming show this week, showing synergy across multiple major activations for Enthusiast.

Fandom and Instagram are partnering for a showdown between two stars who met on the platform, the companies announced Wednesday. Rapper Offset and competitive gaming content creator Kris “FaZe Swagg” Lamberson will face off in Madden NFL 24 to kick off Fandom’s and Instagram’s deal, which includes video, digital, and social content initiatives from Fandom on the social platform. Fandom hopes to leverage its sizable audience of Gen Z consumers to enhance the Instagram Connections campaign, an effort by Instagram to highlight the interpersonal relationships built via users’ interactions on the platform.

Gen.G and Crocs are re-engaging for a metaverse activation along the lines of a September 2022 partnership between the esports and footwear apparel brands. The updated Crocs World game experience will include a competition on the Zepeto user-generated content platform as well as the launch of Crocs World Tycoon, a Roblox game releasing Sept. 15. Both titles will allow players to create custom Crocs and avatars. “Supporting Crocs on delivering unique and gamer authentic experiences in metaverse platforms have been rewarding on so many levels,” Gen.G Chief Revenue Officer Martin Kim said in a statement.

OverActive Media is moving further into the creator economy with the announcement of its Content Creator Academy, featuring talent representing three of OAM’s primary esports brands: the Call of Duty League’s Toronto Ultra, Overwatch League’s Toronto Defiant, and MAD Lions, which operates in several esports. The Content Creator Academy roster includes 20 creators with an aggregate reach of 15 million on social platforms, according to a statement, with nine representatives each for MAD Lions and the Ultra and two for the Defiant.

STREAMHATCHET

The 10 year anniversary of one of live-streaming’s most successful games.

According to Stream Hatchet’s data, since 2016, the game’s viewership has grown quickly and in Q2 2021, the game’s viewership peaked at 874 million hours watched. The record was set for highest hours watched, and hasn’t been broken for any game across the three primary live-streaming platforms and dethroned Just Chatting from the top spot. From that point on, the game remained in second place behind the Non-Gaming category for 6 straight quarters, becoming the most watched game on live streaming for almost 2 years.

Read more on Stream Hatchet’s blog.

2023 Esports & Gaming Business Summit

LET’S DANCE!

With the new EBS AFTER DARK Package, you’ll have access to the Marquee, Jewel and OMNIA, to make your Vegas trip more fun than ever! Availability is limited, so add it to your registration for EBS, taking place October 22-24 at Las Vegas’ MGM Grand, now!

PURCHASE A TICKET NOW

YOUGOV LIVING DATA INSIGHTS

Mobile gaming genres: Hardcore, mid-core, and casual gamers’ choices

Hardcore mobile gamers exhibit strong preferences for Action Games (40%) and Adventure Games (35%). These genres resonate less with mid-core gamers (22% and 20%, respectively) and casual gamers (10% and 8%, respectively). Puzzle/Breakout Games are the only category of games that are more popular among mid-core (25%) and casual (29%) gamers, respectively. Additionally, mid-core and casual gamers also express a relatively high level of interest in Card/Casino Games (20% each). While hardcore gamers show a significant inclination towards Empire-Building/Strategy Games (26%) and Shooter Games (23%), these genres are less popular among mid-core (17% and 13%) and casual gamers (6% and 4%). This highlights the diversity of gaming preferences, with hardcore gamers gravitating towards action-packed and immersive experiences, while mid-core and casual gamers lean more towards puzzle and card games.

TEAMS

Despite winning VALORANT Champions, Evil Geniuses is reportedly making major roster changes. Evil Geniuses players have been allowed to explore other team options during the offseason, but if they return to EG, they will face a “significant pay cut,” VALORANT insider Max Katz reported.

Cloud9 is bringing back former in-game leader Anthony “vanity” Malaspina several months after suddenly dropping the North American standout. Vanity, who played with Shopify Rebellion in the VALORANT Challengers League following being cut by C9 in March, will re-sign with C9, according to Blix.gg, and Cloud9 is also bringing on former G2 Esports player Francis “OXY” Hoang to help round out its roster.

Esports organization KOI has reportedly offered a long-term extension to League of Legends Emil “Larssen” Larsson. Larssen, who has been a staple in European premier play since 2018, has verbally agreed to a four-year extension of his contract with the Spanish organization, according to Alejandro Gomis. Larssen, 23, has been with the organization, known as Rogue prior to KOI’s acquisition of the LEC spot, since December 2018 and, if all goes well, will hit nearly 10 years with the organization before the next round of negotiations.

G2 Esports is looking to bring in The Guard’s VALORANT roster, and in doing so join VALORANT Champions Tour franchising, following The Guard forfeiting its VCT spot and disbanding its VALORANT roster. G2, which was not accepted into North American franchising and competed in the VALORANT Challengers League this past year, would need Riot Games approval to leverage the former roster’s victory in the Ascension tournament into a VCT spot; VALORANT Ascension, a regional VCL season finale, was designed to add the winning team with a VCT position in its region, but with The Guard disbanding, Riot had originally planned to not add a team to VCT Americas in 2024.

INDUSTRY

Unity is adding a developer-side fee for installations of games built with the Unity Engine, the company announced Tuesday. The so-called Runtime Fees could reach up to $0.20 per time a game is installed – not purchased – on a new device. The fees only apply to developers who hit certain revenue or lifetime download benchmarks (for studios using Unity’s lower-volume plans, the threshold is $200,000 in revenue in a year and 200K lifetime downloads), but the shift could have significant implications for studios and publishers on the platform. The changes begin January 1 and apply to existing games as well as future titles; non-gaming content built on Unity is not affected.

ESL FACEIT Group has hired longtime gaming events veteran Guy Blomberg as its Events Director for DreamHack in the Americas. DreamHack, an international festival, will lean on Blomberg’s experience managing events such as E3, PAX and more to build on a standout year that saw back-to-back record-breaking attendance for North America’s DreamHack San Diego in April and DreamHack Dallas in June. Blomberg will begin his role by overseeing DreamHack Atlanta, set to take place Dec. 15-17 this year and also coordinate DreamHack Dallas 2024 (May 31-July 2) and DreamHack Atlanta 2024 (Oct. 4-6).

Mobile puzzle games have made more than $42 billion in the past 11 years, according to a report from Sensor Tower, a digital economy research firm. Sensor Tower, which began tracking the genre in 2012, also reported more than 50 billion downloads of mobile puzzle titles in that timeframe, as well as the performance of sub-genres such as real-time puzzles like Tetris. Swap titles like Candy Crush Saga, physics-based puzzles like Angry Birds and trivia or “riddle” titles were the most-downloaded sub-genres of the decade, with casual play as the preeminent presence in the marketplace.

2023 Esports & Gaming Business Summit

NEW: A Live Focus Group with Gen Z
At this year’s Esports & Gaming Business Summit, Gen Z gamers will share their perspectives on advertising in gaming. From how they like to be marketed to, to what turns them off, to which brands and products they actually use and more, this no-holds-barred conversation is not to be missed!

REGISTER TO ATTEND HERE

TRIVIA
Cincinnati’s Joe Burrow got his payday, but he didn’t exactly put up a performance to match his $275 million contract in Week 1 of the NFL season. How many yards did Burrow pass for in the Bengals’ loss to the Cleveland Browns? (Email [email protected] with your answer, and be sure to include your name, company and city).

Answer to Our Last Trivia Question
What major sports video game title was released last week? Answer: NBA 2K24. Kudos: Tom Moore | Kalt Productions, Los Angeles; David Westberg | SAG•AFTRA Federal Credit Union, Burbank, California

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