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Google’s Nexus 6 Unlocked Device To Cost Significantly More

October 21, 2014 by mphillips  
Filed under Mobile

Google’s new Nexus 6 smartphone will be offered at $649, unlocked, when pre-orders begin on Oct. 29. The price is almost twice the $349 starting price charged for the Nexus 5 a year ago.

Google didn’t elaborate on the price increase after announcing the Nexus 6, but several analysts said Google may be intending to push the Nexus as a premium brand that can compete with the iPhone 6 and other high-end phones.

Google originally developed Android to be inclusive and global, and indeed, it is the world’s largest OS by far. The company developed the Nexus line in 2010 to show Android phone manufacturers, and the public, how a pure Android phone could look and feel without the added features and bloatware installed by phone makers.

Meanwhile, the four national carriers are expected to sell the Nexus 6 with a subsidized price of as low as $200 with a two-year contract, and separate pricing for installment plans. AT&T will be a Nexus provider for the first time, and Verizon Wireless will carry the phone despite a spotty history with the Nexus line.

Such a carrier push to sell Nexus 6 phones with a subsidy seems to indicate that Google is intent on spreading wider adoption of its pure Nexus line that it so far hasn’t achieved. Google has long described Android as an operating system for all, but Google also wants to promote a more refined Android device, which it is trying to do with its Nexus line.

The $649 Nexus 6, which will run Android 5.0 Lollipop with support for 64-bit architecture, is a better phone than the $349 Nexus 5 that runs Android 4.4 KitKat. Nexus 6 also starts with 32 GB storage, double the capacity of its predecessor the Nexus 5. (A 64 GB Nexus 6 will run $699 unlocked on Google Play.)

But all the enhancements in the new Nexus 6, including its 5.96-in. Quad HD display and Snapdragon 805 quad-core processor, still don’t fully account for the 86% increase in starting price for the unlocked model, analysts said.

Sundar Pichai, senior vice president of Android at Google, noted in a blog post that wireless carriers will offer the Nexus 6 on monthly contracts or installment plans. A number of industry sources predicted the two-year contract price will start at $200, a common industry price for high-end smartphones, including the new iPhone 6.

The four major carriers, Google and Motorola, which is the  Nexus 6 manufacturer,  all refused to discuss the prices that carriers will charge. They also would not disclose the November release date.

 

Tablet Sales Growth Dropped Drastically

October 17, 2014 by mphillips  
Filed under Consumer Electronics

The news about tablet sales isn’t good.

Gartner and IDC both recently dramatically lowered their tablet shipment and sales estimates for 2014 and coming years, citing primarily the longer-than-expected time customers keep their existing tablets. (That phenomenon is called the “refresh rate.”)

Gartner said it had originally expected 13% tablet sales growth for the year globally; it has now lowered that growth rate to 11%. IDC’s forecast change was even more dire: In June, it predicted shipment growth this year would be 12.1%, but in September it cut that number to 6.5%.

In the U.S., things are worse, because more than half of households have a tablet and may hold onto it for more than three years, well beyond analysts’ earlier expectations.

IDC said in its latest update that tablet growth in the U.S. this year will be just 1.5%, and will slow to 0.4% in 2015. After that, it expects negative growth through 2018. Adding in 2-in-1 devices, such as a Surface Pro with a keyboard, the situation in the U.S. improves, although overall growth for both tablets and 2-in-1′s will still only reach 3.8% in 2014, and just 0.4% by 2018, IDC said.

“Tablet penetration is high in the U.S. — over half of all households have at least one — which leads to slow growth…,” Mikako Kitagawa, an analyst at Gartner, said in an interview. “A smartphone is a must-have item, but a tablet is not. You can do the same things on a laptop as you do with a tablet, and these are all inter-related.”

Tablets are a “nice-to-have and not a must-have, because phones and PCs are enough to get by,” added Carolina Milanesi, chief of research at Kantar Worldpanel.

In a recent Kantar survey of 20,000 potential tablet buyers, only 13% said they definitely or probably would buy a tablet in the next year, while 54% said they would not, Milanesi said. Of those planning not to buy a tablet, 72% said they were happy with their current PC.

At IDC, analyst Tom Mainelli reported that the first half of 2014 saw tablet growth slow to 5.8% (from a growth rate of 88% in the first half of 2013). Mainelli said the meteoric pace of past years has slowed dramatically due to long device refresh cycles and pressure from sales of large phones, including the new iPhone 6 Plus. That phone has a 5.5-in. display, which is close to some smaller tablets with 7-in. displays.

 

 

 

Will Smartwatches Hit The 100 Million Sales Mark By 2019?

October 17, 2014 by Michael  
Filed under Consumer Electronics

With so much hype surrounding smartwatches and wearables in general, one could hardly be blamed for thinking the industry is about tap a new goldmine, but the numbers are not encouraging.

Juniper Research now estimates smartwatch shipments will hit 100 million by 2019. The firm expects several high-profile products to launch over the next year or so, helping boost mainstream awareness.

However, the figures are anything but encouraging.

The report, titled ‘Smart Watches: Market Dynamics, Vendor Strategies & Scenario Forecasts 2014-2019′, expects growth will decelerate from 2016 onwards. The first batch will ride the hype, but moving forward it won’t do much for mainstream adoption.

However, the forecast also examines the possibility of sustaining 2014-2015 growth in the long term.

If consumers discover a ‘key use case’ or cases for smartwatches, backed by more product releases on the back of higher demand, higher growth could be sustained. In plain English, if people actually find a use for smartwatches, they will see more growth.

Unfortunately the case is hard to make at this point. Smartwatches face a number of hardware limitations and software support is still limited, which means they are not very useful at the moment. Juniper expects more vendors to integrate GPS, NFC and other technologies, but the downside is that smartwatches are not expected to become very cheap. The firm estimates premium branding and high functionality to keep prices at $200+ until the end of the decade.

Europeans not too keen

One possible application that could generate more demand comes in the form of mobile payments. Apple Pay is coming to the Apple Watch, but the service will be limited to the US for quite a while and Apple won’t have an easy time launching it in other markets, where it enjoys a much lower market share.

The problem with mobile digital wallets is that they have not taken off yet. What’s more, new research indicates that Europeans are not sold on the idea of smartwatch wallets.

The survey, carried out by German market research firm GfK, found that just 20 percent of Germans and 27 percent of Britons are interested in contactless payments built into a watch. However, Chinese and American consumers are more open to the idea, with 40 and 54 percent saying they are interested.

Most consumers said they are interested in health applications and many said they would store identification data on their smartwatches.

Courtesy-Fud

Did Apple Sink GT Advanced?

October 9, 2014 by Michael  
Filed under Computing

It is starting to look like the fruity cargo cult, Apple did its level best to sink its partner GT Advanced, the maker of its Sapphire Glass.

GT Advanced relied on Apple and it appears that made it vulnerable. Apple had withheld the last $139 million payment to the company and no one is sure why. This meant that GT Advanced had spent $248 million in cash in one quarter and had no money coming in.

That may have led to the company’s filing, since its cash, at $85 million, was below a $125 million trigger point that would allow Apple to demand repayment of about $440 million in loans it had advanced. Apple had agreed to lend GT a total of $578 million to help get a large sapphire factory in Arizona up and running. The tech giant reportedly withheld the last $139 million payment it was due to make.

While it might be normal in the cut and thrust business world, does look like Apple might turn out to be the bad guy in this story. We would not be surprised if it offers the bankruptcy accountants a deal to buy the company at a knock down price. After all most of the company debts seem to be owned by Jobs’ Mob.

Courtesy-Fud

Is Adobe Spying On e-Readers?

October 9, 2014 by Michael  
Filed under Around The Net

Adobe has been accused of snooping on e-document readers and using spyware to feedback on user libraries.

The accusation comes from the Digital Reader website and Nate Hoffelder, its editor. Hoffelder said that he was tipped to the issue by a ‘hacker’ associate and has tested and confirmed its authenticity.

At the nut of the issue is Digital Editions 4, which has more features than its users expected.

“My source told me, and I can confirm, that Adobe is tracking users in the app and uploading the data to their servers,” he said.

“Adobe is gathering data on the e-books that have been opened, which pages were read, and in what order. All of this data, including the title, publisher and other metadata for the book, is being sent to Adobe’s server in clear text. I am not joking.”

Hoffelder said that the data is sent from hardware to server in plain text, and that it takes other information with it, including metadata from e-books stored on the user’s hard drive. He added that he is shocked, and has put the issue to Adobe but failed to get a response.

We have followed suit and asked Adobe for comment or explanation as to what the system is and why it is happening.

Hoffelder has uploaded documents with information from tracking software Wireshark that shows material leaving his computer and going to an Adobe IP address.

“This is a privacy and security breach so big that I am still trying to wrap my head around the technical aspects, much less the legal aspects,” he said.

“I would highly recommend that users avoid running Adobe’s apps for the near future – ever again, for that matter. Luckily for us there are alternatives.”

Courtesy-TheInq

iPhone 6 Plus Sales Account For Nearly 20% Of New iPhones

October 8, 2014 by mphillips  
Filed under Mobile

Although Apple’s iPhone 6 Plus remains mostly out of stock, its portion of total iPhone 6 and 6 Plus sales has increased over the last two weeks, according to analysis of usage-tracking data.

Mobile metrics firms Mixpanel and Fiksu, which monitor the activity of iPhone owners via the analytics embedded in clients’ apps, have both noted an improvement in the ratio of the iPhone 6 Plus to iPhone 6 smartphones.

As of Sunday, for example, Mixpanel pegged the iPhone 6 at 6.02% of all iPhones, with the iPhone 6 Plus representing 1.34%. The ratio — 4.5:1, or 4.5 iPhone 6 handsets for every one iPhone 6 Plus — was an improvement for the iPhone 6 Plus from the 6.8:1 of two weeks prior.

Fiksu, another mobile app metrics provider, recorded a similar trend.

On Sunday, Fiksu’s ratio was 3.9:1 in favor of the iPhone 6, a stronger showing for the iPhone 6 Plus than two weeks before, when the ratio was 6.5:1.

In other words, about 18% to 20% of all iPhone 6 smartphones monitored by Mixpanel and Fiksu were iPhone 6 Pluses.

Apple still shows a delay between ordering and shipping for both models, but the lag for the iPhone 6 Plus — at “3-4 weeks” on its e-store — remained substantially longer than the iPhone 6 (“7-10 business days”) by a large margin.

But the increasing share of the iPhone 6 Plus in the usage data indicates that, even though it is harder to find than its smaller sibling, customers are acquiring it in larger numbers. That, in turn, hints that sales — or at least usage — of the iPhone 6 Plus are increasing faster than for the iPhone 6.

Most analysts expect the iPhone 6 Plus’s share to jump even more once the 5.5-in. smartphone goes on sale in the People’s Republic of China (PRC) on Oct. 17. Customers in mainland China can pre-order the iPhone 6 and 6 Plus from Apple’s online store starting Friday, Oct. 10.

While the iPhone 6 Plus is out of stock on Apple’s online market, some of the Cupertino, Calif. company’s brick-and-mortar stores have devices to sell, according to iStockNow.com, a website that tracks iPhone retail availability.

 

Humana Integrates Health App With Apple’s HealthKit

October 1, 2014 by mphillips  
Filed under Mobile

Humana Inc, which manages private Medicare and individual Obamacare insurance plans, has announced that it has integrated its consumer health application with Apple Inc’s HealthKit.

The move, the first announced by a major insurer, allows Humana customers to more easily manage fitness data and other personal health goals, the company said in a statement.

Humana’s wellness program, called HumanaVitality, rewards members for hitting these goals, which include being more active, eating better or losing weight, with items such as movie tickets and fitness equipment.

Apple’s HealthKit gathers data such as blood pressure and weight from various applications, enabling it to be viewed by consumers and doctors in one place. Its ease of use is expected to increase the data sharing between doctors and patients.

Apple delayed the launch of HealthKit earlier this month when it pulled back its iOS 8 operating system for iPhones and iPads. HealthKit and the new Humana application, which has about 3.8 million eligible members, launched lastFriday.

 

 

 

Was Titan A 50M Dollar Loss For Blizzard?

September 26, 2014 by Michael  
Filed under Gaming

When Titan first came to light in 2007, most people assumed it would be Blizzard’s next big thing, ultimately taking the place of World of Warcraft which was likely to see further declines in the years ahead. Fast forward seven years, WoW clearly has been fading (down to 6.8 million subs as of June 30) but Blizzard has no MMO lined up to replace it, and that fact was really hammered home today with the surprise cancellation of Titan. In fact, the developer stressed that it didn’t want to be known as an MMO company and one may not be in its future. Cancelling the project this late in the game may have cost Blizzard several tens of millions of dollars, analysts told GamesIndustry.biz.

“Development costs for Titan may have amounted to tens of millions, perhaps $50 million or more. This is not an unusual event, however. Blizzard has cancelled several games in various stages of development in the past. Costs for unreleased games can be significant, but launching substandard games can harm the reputation of a successful publisher such as Blizzard. Expenses for development can be considered R&D, and benefits can include invaluable training, IP and technology that can be applied to other games,” explained independent analyst Billy Pidgeon.

Wedbush Securities’ Michael Pachter estimated an even higher amount lost: “My guess is 100 – 200 people at $100,000 per year, so $70 – 140 million sunk cost. It’s pretty sad that it took so long to figure out how bad the game was. I expect them to go back to the drawing board.”

Indeed, the market has changed considerably in the last seven years, and while MMOs like EA’s Star Wars: The Old Republic struggle to find a large audience, free-to-play games and tablet games like Blizzard’s own Hearthstone are finding success. Blizzard has no doubt been keenly aware of the market realities too.

“As far back as 2013, they had already stated Titan was not likely to be a subscription-based MMORPG. This is consistent with a market that is increasingly dominated by multiplayer games that are either free to play or are an expected feature included with triple-A games such as Call of Duty. Titanfall and Destiny sold as standalone games supplemented by paid downloadable add-ons. Blizzard maintains very high standards of quality, so expectations will be steep for new franchises as well as for sequels,” Pidgeon continued.

DFC Intelligence’s David Cole agreed, noting that after seven years of development in an industry where trends and technologies change at a rapid pace, Blizzard simply had to pull the plug on Titan.

“They realized that unless a big MMO is out-of-this-world unbelievable it won’t work in today’s market where it competes against a bunch of low cost options. If they felt that it just wasn’t getting to that point it makes sense to cut your losses,” he noted. “Also, you see games like League of Legends and their own Hearthstone which are doing very well on a much lower budget.”

“For Blizzard, I am expecting to see them continue to focus on high quality products but also focus on products with shorter development cycles and less cost. The market is just not in a place where you can have games with 7+ year development. It is changing too fast.”

For most developers, junking a seven-year long project would instantly spell turmoil, but thankfully for Blizzard, it’s part of the Activision Blizzard behemoth, which has a market cap of over $15 billion and, as of June 30, cash and cash equivalents of over $4 billion on hand. It’s a nice luxury to have.

Courtesy-GI.biz

Apple iPhone 6 Pre-orders Sets Record With 4M On First Day

September 17, 2014 by mphillips  
Filed under Mobile

Apple Inc said many customers will have to wait until October for their new iPhones after a record 4 million first-day pre-orders were logged, double the number for the iPhone 5 two years ago.

The company said demand had outstripped supply of the new iPhone 6 and iPhone 6 Plus, which feature larger screens and longer battery life. Deliveries of pre-orders will begin on Friday and will continue through October.

Bumper first-day pre-orders point to first-weekend sales of up to 10 million units, analysts estimated.

“Assuming preorders are similar to the 40 percent of first weekend sales for the iPhone 5, this would imply iPhone 6/6Plus first weekend sales could be around 10 million,” Wells Fargo Securities analysts wrote in a note.

About 2 million pre-orders were received for the iPhone 5 in the first 24 hours after it went on sale in September 2012. Apple sold 5 million of these phones in the first weekend.

Apple sold 9 million iPhone 5Ss and 5Cs, which were launched last year, in the first three days in stores. The company did not reveal pre-order numbers for these phones.

Raymond James analysts said they expect sales of iPhone 6 and iPhone 6 Plus to top 9 million in the first weekend.

“Apple will be selling every iPhone it can make, at least through October. Because of this, the first weekend sales are typically more indicative of supply than demand,” they said.

The company routinely grapples with iPhone supply constraints, particularly in years that involve a smartphone re-design.

Apple’s website showed last week that the larger 5.5-inch “Plus” models displayed a wait time of up to a month. The 4.7-inch version was available for delivery on Sept. 19.

Janney Capital Markets analysts said the large number of pre-orders was due to “pent-up demand” for bigger iPhone screens.

The brokerage raised its sales estimate for the latest iPhones to 37.4 million units for the current quarter and 60 million for the quarter ended December.

 

 

Will EA Make Games For Wearables?

September 16, 2014 by Michael  
Filed under Computing

EA is considering developing games for wearables. The company already has two teams on the job, looking for ways to make wearable games. Their efforts are focused on the Apple Watch for now.

EA told CNET that the company has quite a relationship with Apple and Frank Gibeau, head of EA’s mobile gaming arm, said he is impressed with the new Apple A8 SoC. Gibeau added that Apple’s decision to include 128GB storage in flagship models is more good news for gamers, as it raises the bar for developers and gives them more room to play around with.

Gibeau said EA’s mobile division is “intrigued” by the prospect of gaming on wearables. He said wearables are eventually going to offer more performance and capability, thus enabling new gaming experiences. However, he cautioned that “it’s very early days” for wearable gaming.

“In fact, we have two teams prototyping wearable experiences that are not only standalone, but also some ideas where you can actually use the fitness component in the watch that can unlock capabilities in the game that might be on your iPhone. Or you could do crafting or some other auction trading on your watch that goes back into your tablet game that you might check out later when you get home,” he told CNET.

Courtesy-Fud

iPhone 6 Plus Already Delayed Due To High Demand

September 15, 2014 by mphillips  
Filed under Mobile

Customers may have to wait three to four weeks to get their hands on Apple Inc’s  iPhone 6 Plus, after a record number of orders for the company’s latest smartphones put a huge dent in the available supply.

The new iPhone 6 goes on sale on Sept. 19 in the United States but the company began taking online orders on Thursday. While the larger 5.5-inch “Plus” models now display a wait time of up to a month, the 4.7-inch version remains available for delivery on Sept. 19, Apple’s website showed.

Verizon Wireless, AT&T and Sprint Corp, also showed shipment delays of up to six weeks on their respective websites. Apple said the pace of orders has so far outstripped any of its previous iPhones.

“Response to iPhone 6 and iPhone 6 Plus has been incredible, with a record number of pre-orders overnight. Pre-orders are currently available online or through the Apple Store App,” spokeswoman Trudy Muller said.

Apple routinely grapples with iPhone supply constraints, particularly in years that involve a smartphone re-design. The latest iPhones come with larger screens and some analysts had anticipated that production issues may keep a lid on initial runs.

Its suppliers had scrambled to get enough screens ready because the need to redesign a key component had disrupted panel production, supply chain sources told Reuters last month.

It was unclear whether the hiccup could limit the number of phones available to consumers, the sources said at the time. Apple declined to comment on supply chain issues.

In addition, Chinese customers may also have to wait until the year-end before they can buy the iPhone 6. Apple is yet to set a release date for China, the world’s biggest smartphone market.

The company unveiled its latest iPhones along with a watch and a mobile payments service last Tuesday.

 

BlackBerry Acquires Mobile Technology Start-up Movirtu

September 12, 2014 by mphillips  
Filed under Mobile

BlackBerry has purchased a U.K-based mobile technology start-up whose software allows multiple phone numbers on a single device, the Canadian tech firm said on Thursday.

The acquisition of Movirtu helps BlackBerry ramp up its portfolio of services to cater to the needs of its core base of corporate and government clients. Terms of the transaction were not disclosed.

Movirtu’s virtual SIM technology allows an individual to have both a personal and business number on a single mobile device, with separate billing for voice, data and messaging usage on each number.

This allows employees to switch between work and personal profiles easily without carrying multiple devices or SIM cards.

“Clearly this fits nicely within the strategy we have so far articulated. We are building recurring revenue streams in value-added services and providing more value to enterprises,” the head of BlackBerry’s enterprise unit John Sims said in an interview.

Sims said Movirtu’s technology would allow IT administrators for example to restrict calls and emails to a work number after a particular time, without blocking personal calls or emails to the same device.

BlackBerry, which dominated the smartphone market in its infancy, has been reshaping itself over the course of the last year as its devices have lost ground to Apple’s iPhone and a slew of rival devices powered by Google’s Android operating system.

Under the leadership of its new chief executive John Chen, the company has moved rapidly to stabilize itself by selling certain assets, partnering to make its manufacturing and supply chain more efficient, and raising cash via the sale of its real estate holdings.

Chen, a well-regarded turnaround artist in the tech sector, intends to remain a competitor in the smartphone arena, but is focused on reshaping the company to build on its core strengths in areas like mobile data security and mobile device management.

The company has been making small acquisitions in the last few months, as it looks to build out its offerings for so-called enterprise clients made up primarily by large corporations and government agencies that are in many cases still major users of Blackberry devices.

 

Verizon Has A Deal To Offer Free iPhone 6

September 11, 2014 by mphillips  
Filed under Mobile

Verizon Communications will give customers who trade in an old iPhone a free iPhone 6 in exchange for a two-year contract, the country’s largest wireless carrier announced hours after Apple Inc introduced the widely anticipated device.

The announcement came as critics speculated that Apple’s newest phone, starting at $199 with a two-year contract, would not be competitive as more carriers eliminate contracts and unbundle service charges from the cost of devices.

Analysts say that by making the cost of devices more transparent, equipment financing plans make expensive handsets like the iPhone less appealing. On the other hand, the plans allow customers to pay for devices in installments, making pricy devices like the iPhone more accessible.

Customers who trade in an iPhone 4, 4s, 5, 5c or 5s in working condition will receive a $200 gift card to pre-order the 16-gigabyte version of the newer model, Verizon said in a statement. The offer does not apply to Apple’s other new phone, the larger iPhone 6 Plus.

Verizon has been more reluctant than competitors to dive into equipment financing, and its promotion indicates its attachment to the older contract model, which binds subscribers to the carrier for a fixed term, said Jan Dawson, analyst at JackDaw Research.

“There is an inherent risk in the shift to installment billing that it creates more loyalty to the device than to the carrier,” said Dawson.

“Verizon sees the value of the two-year contract in that tying a device to a two-year plan can prevent churn,” said Dawson.

He pointed out that new device releases are major factors for subscribers in deciding whether to switch carriers.

As the market for new smartphone customers shrinks, carriers have been competing aggressively for subscribers, slashing prices and engaging in creative promotions to poach each others’ customers.

On Monday, T-Mobile announced it would beat any other major carriers’ trade-in rates and give customers a $50 credit as well.

 

 

Intel Releases Edison

September 11, 2014 by Michael  
Filed under Computing

Intel has released its Edison chip for wearables at its Intel developer conference (IDF) in California today. The tiny computer is a dual-core Quark system on chip (SoC) Pentium-class x86 processor made using the 22nm process.

The Edison device runs Linux and has built-in WiFi and Bluetooth modules. The chip can also connect to its own app store, and has 40 I/Os via a 70-pin connector that lets users do many things without going through a custom board. Intel CEO Brian Krzanich Intel said that the module, which has the footprint of an SD card, was to encourage developers to build the next generation of wearable and connected devices now that it is shipping.

All IDF attendees went home with a free Edison developer kit and it will be on sale for $50 retail cost. Like the Galileo board it will be open source so developers can develop it.

“I really hope to see an explosion of innovation around this part, it has everything a person needs and an extension capability to build just about anything you can think of,” he said.

Edison has been developed by Intel to be a simple low-power development platform for people to develop software easily, thus to usher in the next generation of Internet of Things (IoT) and wearable devices.

 

 

Courtesy-Fud

Will eSports Overtake the NHL?

September 11, 2014 by Michael  
Filed under Gaming

You can’t accuse eSports League CEO Ralf Reichert of always telling people what they want to hear. At last month’s FanExpo Canada in Toronto, Ontario, just a few blocks away from the Hockey Hall of Fame, Reichert told GamesIndustry.biz that he saw competitive gaming overtaking the local pastime.

“Our honest belief is it’s going to be a top 5 sport in the world,” Reichert said. “If you compare it to the NHL, to ice hockey, that’s not a first row sport, but a very good second-row sport. [eSports] should be ahead of that… It’s already huge, it’s already comparable to these traditional sports. Not the Super Bowl, but the NHL [Stanley Cup Finals].”

Each game of this year’s Stanley Cup Finals averaged 5 million viewers on NBC and the NBC Sports Network. The finals of the ESL Intel Extreme Masters’ eighth season, held in March in Katowice, Poland, drew 1 million peak concurrent viewers, and 10 million unique viewers over the course of the weekend. That’s comparing the US audience for hockey to a global audience for the IEM series, but Reichert said the events are getting larger all the time.

As for how eSports have grown in recent years, the executive characterized it as a mostly organic process, and one that sometimes happens in spite of the major players. One mistake he’s seen eSports promoters make time and again is trying to be too far ahead of the curve.

“There have been numerous attempts to do celebrity leagues as a way to grow eSports, to make it more accessible,” Reichert said. “And rather than focusing on the core of eSports, the Starcrafts and League of Legends of the world, people tried to use easy games, put celebrities on it, and make a classic TV format out of it.”

One such effort, DirecTV’s Championship Gaming Series, held an “inaugural draft” at the Playboy Mansion in Beverly Hills and featured traditional eSports staples like Counter-Strike: Source alongside arguably more accessible fare like Dead or Alive 4, FIFA 07, and Project Gotham Racing 3.

“They put in tens of millions of dollars in trying to build up a simplified eSports league, and it was just doomed because they tried to simplify it rather than embrace the beauty of the apparent complexity.”

Complexity is what gives established sports their longevity, Reichert said. And while he dismisses the idea that eSports are any more complex than American football or baseball, he also acknowledged there is a learning curve involved, and it’s steep enough that ESL isn’t worrying about bringing new people on board.

“It’s tough for generations who didn’t grow up with gaming to get what Starcraft is,” Reichert said. “They need to spend 2-10 hours with it, in terms of watching it, getting it explained, and getting educated around it, or else they still might have that opinion. Our focus is more to have the generations who grew up with it as true fans, rather than trying to educate people who are outside of this conglomerate… There have been numerous attempts to make European soccer easier to approach, or American football, or baseball, but they all kill the soul of the actual sport. Every attempt to do that is just doomed.”

Authenticity is what keeps the core of the audience engaged, Reichert said. And even though there will always be purists who fuss over every change–Reichert said changing competitive maps in Starcraft could spark a debate like instant replay in baseball–being true to the core of the original sport has been key for snowboarding, mixed martial arts, and every other successful upstart sport of the last 15 years.

“Like with every new sport, the biggest obstacle has been people not believing in it,” Reichert said. “And it goes across media, sponsorships, game developers, press, everyone. The acceptance of eSports was a hard fought battle over a long, long time, and there’s a tipping point where it goes beyond people looking at it like ‘what the hell is this?’ And to reach that point was the big battle for eSports… The thing is, once we started to fill these stadiums, everyone looking at the space instantly gets it. Games, stadiums, this is a sport. It’s such a simple messaging that no one denies it anymore who knows about the facts.”

That’s not to say everybody is convinced. ESPN president John Skipper recently dismissed eSports as “not a sport,” even though his network streamed coverage of Valve’s signature Dota 2 tournament earlier this year. Reichert admitted that mainstream institutions seem to be lagging behind when it comes to acceptance, particularly with sponsors. While companies within the game industry are sold on eSports, non-endemic advertisers are only beginning to get it.

“The very, let’s say progressive ones, like Red Bull, are already involved,” Reichert said. “But to get it into the T-Mobiles and other companies as a strategy piece, that will still take some time. The market in terms of the size and quality of events is still ahead of the sponsorship, but that’s very typical.”

Toronto was the second stop for ESL’s IEM Season 9 after launching in Shenzhen July 16. The league is placing an international emphasis on this year’s competition, with additional stops planned in the US, Europe, and Southeast Asia.

Courtesy-GI.biz