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Cynopsis Esports & Gaming 4/25/24: Embracer plans to split; Fortnite feature courts controversy; Alliane rebrands


Medias First Morning Read
 

Thursday April 25, 2024

Good morning! It’s Thursday, and this is your monthly Esports and Gaming Brief.

Gaming conglomerate Embracer Group plans to split into three entities as part of its ongoing course-correction, the company announced this week. Embracer, which noted the plan is still not set in stone, plans to spin off both tabletop publisher Asmodee Group and “Coffee Stain & Friends,” an entity that will encompass Embracer’s indie and AA studios. Embracer will retain “Middle-earth Enterprises & Friends,” a AAA game development arm centered on its largest IP, including The Lord of the Rings, Tomb Raider and others.

The move, when completed in 2025 with the separation of Coffee Stain from the Embracer portfolio, will end a lengthy saga that began in May 2023, when Embracer CEO Lars Wingefors informed investors that a deal that would have brought $2 billion to Embracer’s coffers fell through. Later that year, Embracer began restructuring its company and cutting projects and personnel, and its projections for the year to come fell significantly. The deal, which Axios reported was to be between Embracer and Savvy Games Group, was all but finalized, Wingefors said, before the fallout led to what will be a very different Embracer – if it even retains that name – by the end of 2024.

There will certainly be some obstacles ahead for Asmodee, which will take on around $960 million in debt from its parent company via loans Embracer is taking against Asmodee’s assets. “The proceeds from the financing are used to repay existing debt and reduce leverage in the remaining Embracer Group,” the company said in a statement. The path forward for the rest of the portfolio is no less murky, and Wingefors, who will remain the owner of all three companies, will be under no less scrutiny amid yet another tectonic shift for one of the gaming industry’s biggest players.

COMPETITION AND GAMING NEWS

The Call of Duty League plans to eliminate or refund the league’s $25 million team entry fees, increase team revenue from sales of in-game merchandise and increase subsidies for teams that organize in-person CDL events, Call of Duty Esports general manager Daniel Tsay announced April 16. The move, which also includes a “two-year minimum guarantee of revenue” for participating teams, is designed to bring additional relief to Call of Duty League franchises that have seen their slots become loss leaders for their esports organizations.

Saudi Arabia’s Esports World Cup will feature a $60 million prize pool, the EWC Foundation announced, making this summer’s tournament in Riyadh the largest-ever prize pool for an esports event. The competition, which will feature 19 game titles, will offer a $20 million prize pool to be divided amongst the 16 best-performing teams across all games, more than $30 million distributed as individual tournament prizes, and additional prizing for qualification competitions ($7.6 million) and for tournament MVPs ($1.1 million).

A new feature in Fortnite that lets players block “confrontational emotes” has sparked some controversy in the battle royale’s community. The change allows players to block four in-game emotes that, over time, have primarily become tools for antagonizing fellow players. Critics have called Fortnite’s move a step too far, as the emotes themselves are innocuous and have to be purchased to be used.

Riot Games is reportedly planning to add a third international event to its League of Legends schedule that would take place between the Winter and Spring splits, according to Sheep Esports. Riot plans to provide an update on the 2025 schedule for League of Legends esports in June, a spokesperson told Sheep Esports.

SPONSORSHIP & ACTIVATION

Gaming lifestyle organizations OpTic Gaming has partnered with soccer club Juventus, the teams announced April 5. Juventus, a Serie A club, and OpTic, best known for its tenure in Call of Duty esports, will hope to connect two global fan bases through co-branded merchandise, social media and content collaborations, and “joint activations at live events in both the football and esports worlds.” “OpTic and Juventus are built on different foundations, but we share values in how we compete and foster communities with unmatched passion and engagement,” OpTic CEO Hector Rodriguez said in a statement. “We’re looking forward to making this partnership one that unites people … elevates Juventus, and makes OpTic a more global organization than ever.”

Esports organization Alliance has rebranded with a new look to its logo that does away with the letter-and-shield combination it’s sported for about a decade. The rebrand, which also restyles the “A” logo that the team has leaned on for so long, goes with a sleek and simple approach, using just the Alliance name and a three-tone color palette. The new logo will be implemented across all of Alliance’s esports programs and its social channels.

Esports organization BIG and gaming peripheral company Logitech are partnering to promote the company’s Logitech G brand, they announced. BIG, which operates out of Germany, will use Logitech G products both in competitions and for content initiatives, while BIG will also get additional visibility through activations and promotional materials put on by Logitech in Germany.

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YOUGOV LIVING DATA INSIGHTS

Quality over price for high-end graphics card buyers

Nearly a tenth of PC/Console gamers say they intend to buy a high-end graphics card within the next six months (9%), but what factors will they consider when making this purchase? Nearly nine in ten of them say they will prioritize quality when they are next in the market for gaming accessories (85%). This puts quality well above price (63%) as the most commonly cited decision-making factor. Features and technical specifications will also be pored on (56%), while brand name also has significant sway (54%).

STREAM HATCHET INSIGHTS
Q1 2024 Live Streaming Trends Report: Stream Hatchet

Stream Hatchet’s Q1 2024 Live Streaming Trends Report is live. Get the free report to dive into the latest live-streaming and gaming trends for the first quarter of the year.Key takeaways include:Live-streaming viewership is up 10% from Q1 2023 to 8.2 billion hours watched, indicating a resurgence in the industry since the post-pandemic dip.

While many of the smaller platforms in the market are losing viewership, big players like Twitch, and YouTube Gaming continue to grow. Steam was a breakout star in Q1, doubling its hours watched. New South Korean platform, Chzzk, helped AfreecaTV to overtake Twitch’s influence in the country.

Palworld was the top Q1 game launch by a mile – with 95M hours watched in its first 30 days, it outperformed mega-popular Hogwarts Legacy (Q1 2023’s big star) by 25M hours watched.

The report offers critical insights, serving as a strategic guide for stakeholders in the streaming ecosystem, emphasizing the importance of leveraging analytics for informed decision-making.

Download the report for free here

A WINDFALL FOR FALLOUT

Another video game-based TV series, another win for fans everywhere: Prime Video’s adaptation of the Fallout franchise has drawn millions of viewers and, in a new twist, revitalized the player community around the Bethesda title’s mainline Fallout games.

Fallout released to strong reviews on Metacritic from fans and reviewers alike, and the show drew viewership from 1.5 million households, according to The Wrap. The series’ popularity inspired two immediate developments: The announcement that Fallout will get a second season, and a surge in players of Fallout franchise games, including single-player role-playing games Fallout 3, Fallout: New Vegas and Fallout 4, and a massive boom for Fallout 76, the game’s multiplayer online RPG.

Fallout 76, which averaged just under 6,000 concurrent players in March, saw its player base swell to around 18,000 average players following the release of the Fallout adaptation. On Tuesday, Bethesda announced it had seen 1 million unique players load into the Wasteland in a single day – and the game’s peak concurrent players are higher than ever before, including when Fallout 76 first released in November 2018.

While box offices and subscription services have swelled as a result of high-quality video game adaptations in the past, this noticeable growth in player acquisition and resurrection of former players is new. Part of the recipe might be that, while the Fallout show made many references to the events and inside jokes of the overall Fallout franchise, Season 1 was an original story that both tugs at the nostalgia of longtime fans and enriches the existing Fallout universe with new canon.

Bethesda’s and Amazon’s success might seem like more of the same, but there’s a different feel to the results for Fallout. It’s a holistic win, and one that shows how offering new windows into a beloved universe can reignite the passion of both your long-standing community and bring in new faces.

INDUSTRY

The U.S. Federal Trade Commission’s ban of non-compete agreements could have a particularly noteworthy impact on the games industry. Non-compete clauses are a staple in contracts in this industry, for everyone from game developers to quality assurance specialists, community managers, and even reporters on the esports and gaming markets. The FTC estimated that 18% of U.S. workers will be impacted by the change when it goes into effect in 120 days, though the ruling could still face a challenge in court.

Twitch’s loss in South Korea has been streaming platform CHZZK’s gain, according to new data from StreamElements and Stream Charts. CHZZK, which is owned by South Korean web platform Naver, reached 47 million hours watched in February 2024 as Twitch shuttered in the country. That mark, which nearly doubled watch hours for CHZZK from January, leapt once again in March, with 59 million watch hours.

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TRIVIA
When did the first game in the Fallout series release? (Email [email protected] with your answer, and be sure to include your name, company and city).Answer to Our Last Trivia Question
How many double-digit seeds won in the first round of both the men’s and women’s NCAA basketball tournaments? Answer: Nine. Kudos: Creed Heilskov | ImOn Communications, Cedar Rapids, Iowa; Michael Goodman | Radio One Atlanta, Atlanta; Tom Moore | Kalt Productions, Los Angeles

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