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Esports and the Data Behind It | Mike Hines
1. @MikeFHines MikeFHines
THE GROW TH CASE FOR COMPETITIVE GAMING
THE NUMB ERS B EHIND THE HYPE
MIKE HINES
D E V E L O P E R E V A N G E L I S T, A M A Z O N
2. A B O U T
Mike Hine s
Amazon Appstore
@MikeFHines
Founder @ 2 Financial Services Startups
Founder @ 2 Software Startups
QA Engineer @ Now Software
QA Manager, Product Manager @ Microsoft
Evangelist @ Amazon.com
Mentor @ GameFounders, Dev Bootcamp
Games Judge @Casual Connect Indie Prize, White
Nights, and Pocket Gamer Very Big Indie Pitch
Speaker @ GDC, GDCE, Casual Connect, Pocket
Gamer Connects, AnDevCon, White Nights, CES,
PAX Dev, etc…
4. W H AT I S I T
C O M P E T I T I V E
G A M I N G
Real time competition
between two or more
players.
5. W H AT I S I T
E S P O R T S
F R A N C H I S E S
The games that made
esports big
6. W H AT I S I T
S T R E A M
Y O U R G A M E
Stream your game, or
watch others play your
favorite game and learn
new tricks
Streamer/
Broadcaster
Viewer ChatGameplay
7. W H AT I S I T
I N T E R A C T
W I T H F A N S
Chat with fans of game
you’re watching
19. N E X T S T E P S
Take advantage
of Competitive
Gaming as a
developer
WHAT CAN YOU
D O N O W ?
Be a part of Twitch
Watch and play games on Twitch
Empower your community
give your community the tools to
organize their own tournaments.
You can do a lot without ever streaming
Promote your players who stream
When developing your game, use a
streaming-first lens
20. M O R E I N F O
G E T T H E B O O K
COMPANION TO THE
AMAZON APPSTORE
P u b l i s h i n g , p ro m o t i n g
a n d m a k i n g m o n e y w i t h
y o u r a p p
bit.ly/AmazonAppstoreBook
21. THANK YOU!
Mike Hines
Twitter - @MikeFHines
Facebook - /MikeFHines
Thank you for attending our event.
Please take a moment to complete our
survey for a chance to win the grand
prize.
Get my favorite indie dev
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Hinweis der Redaktion
Hi there!
Thanks for joining me to talk about some of the numbers behind eSports and Competitive Gaming
I’m Mike Hines, and thanks in part to Twitch, our partners at Newzoo, and our own Amazon Appstore market research teams, we’ve been able to put together some pretty interesting data on Competitive Gaming.
Okay, so what is competitive gaming and what can it do for you?
Images sources from Amazon.com
When we think of competitive gaming, our minds go
Immediately to eSports. However, competitive gaming is
More than eSports. Any time you play against another person,
You are participating in a competitive game.
Humans are wired for competition. While most people don’t
Consider themselves competitive gamers, but almost all of us
Participate in competitive games. There is a reason games
Like Chess and Go have existed for centuries. Playing games
Competitively against others is more fun. More importantly,
Competition creates social connection and builds strong
communities.
These are the big boys. They don’t get all the traffic, but they get a majority of it.
These franchises become esports when the players compete for prizes, play in front of audiences, or stream their games for the public.
And more often than not, that happens on Twitch.
For those of you unfamiliar with Twitch, here is how it works.
The twitch screen includes a Streamer/broadcaster window, where we can see the person doing the streaming and commenting on the game, a Gameplay window where we see what the steamer is playing, and a viewer chat pane where the audience can chat with each other and with the streamer.
For example, here we see someone playing poker and chatting with the fans watching him play the game.
Great! But who watches other people play video games?
Well I’ve got some interesting numbers for you:
This is the audience participation part of our talk today! Everyone think of a number for ….
33 million hours to build Pyramid of Giza (Wikipedia)
360 million hours for the most popular YouTube video of all time. (https://en.wikipedia.org/wiki/List_of_most-viewed_YouTube_videos)
664 million hours watching College Basketball tournament in the US March Madness (fortune.com/2015/03/06/march-madness/)
In 2016, Twitch viewers spent 4.8 Billion hours watching people play games. (http://www.esprts.com/4-8-billion-hours-spent-watching-twitch-in-2016/)
So yeah, lots of people watch video games, and not just a few really popular games either.
Where is competitive gaming taking off?
Well, it’s the growth markets; the markets you probably want to be in.
Of 191 Million participants, APAC will get just over half of them, with Europe, North America, and the rest of the world sharing roughly equally in the other half.
And not just in hard core fans (the darker part of each bar) but in casual fans too (the lighter part).
Last year was the first year where the casual audience was bigger than the hard core audience, and that trend should continue through 2020.
(Huge thanks to our friends at Newzoo for this data!)
With the number of viewers esports attracts, there is no doubt it will grow to a multi-billion dollar industry in the coming years. The only question is at what pace this will occur. Currently, esports in its adolescence phase and there a couple of key factors that will influence the speed of its growth. These include the success of
new leagues and monetization initiatives, the rise of
new esports titles, the uptake of
media rights, and team profitability. On its current trajectory, Newzoo estimates the esports industry will reach $1.5 billion by 2020. Should any of these factors accelerate, a more optimistic scenario places the revenues at $2.4 billion.
Why will traditional media players and traditional brands reach out to Competitive Gaming and eSports?
Well, the audience isn’t trivial, their spend isn’t trivial…
… but it’s who the audience is and how they are behaving that will drive early entry.
Take the case of ESPN…
They’ve been losing subscribers at an alarming rate. Cable-cutters are a part of that to be sure, but so are millennials. People who look first to the internet for their content instead of their TV sets.
By the way: 21% of all customers consume their video content on mobile. Esports enthusiasts consume 49% of their content on mobile! So think about competitive gaming for mobile to reach a growing market!
Is it working?
22% of men aged 21-35 (a desirable demographic) watch more esports than baseball or hockey.
Media rights and Franchising?
Here’s what we have so far. Take a look at the brands on the bottom of this slide.
Room to grow? You bet! Take a look at the interesting data point on the top right. If esports made as much per viewer as the NBA does, we’d have make 3.5 Billion instead of 700 million last year. About 5 times as much. So yes, there is plenty of room to grow.
So who generates what part of the revenue?
Brand investments like media rights, ads, and sponsors have generated over half of the revenue in the past and should generate over half of the revenue moving forward as well.
And just as APAC and North America generated a lot of users, they generated a lions share of revenue as well.
North America generated the most revenue at 41%, while China and South Korea made up 36% and 7% respectively.
Be a part of Twitch – Set up an official channel and work to grow your audience through consistent streams.
Empower the community – give your community the tools to organize their own tournaments.
You can do a lot without ever streaming – If you give your players to proper tools and incentives, they will do the hard work to actually stream. Consider developing an official streamer program to help reward your top streamers. You can even have your best streamers and influencers stream through your own official channel.
When developing your game, use a streaming-first lens to ensure you create a great viewing experience for those watching the game and an easy-to-stream experience for your streamers.
Be active with your community and listen – engage with your community in their streams. Share their content. And most importantly, listen to their feedback and integrate it into your product and marketing programs.
Do everything you can to remove toxic players – A few toxic players can sour your game for thousands. Take a strong stance and work diligently to create a healthy, accepting community.
Feel free to reach out to me if you have any questions, or if you have questions about Seeds and their work doing Social Good, we’ve got Nate Barker on the line with us to answer those questions.
I’ll give you a minute to type in your questions…