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Is Video Game Development Going Truly Global?

July 18, 2017 by  
Filed under Gaming

The international video games industry owes a considerable amount to the efforts of immigrants from countries like Syria.

Companies like AdMob – founded by Syrian Entrepreneur Omar Hamoui, and later acquired by Google for $750 million – have helped reshape the conventions of game publishing as we know it. Steve Jobs’ own biological father was a Syrian emigrant to the states. On taking that journey, Abdulfattah ‘John’ Jandali unknowingly set events in motion that would lead to Apple’s reinvention of how we play, make and distribute games.

Beyond games there are numerous other examples of Syrian people who have helped better the world through technology, empowered to do so through freedom of travel. People like Sirin Hamsho, a Hama-born engineer who today resides in the United States, and has helped revolutionise renewable energy through her work with wind turbines.

Technology is, of course, progressed by collaboration, and cooperation happens most readily when people can get together. It’s the reason travelling to other countries – be it for a single meeting or a new life – is so often the catalyst for technological change. That’s why most in the games industry go to conferences all over the world; it’s a chance to understand distinct approaches, secure contacts, form alliances and spark collaboration.

When Trump’s long-promised travel ban became a rather chaotic reality, numerous games makers suddenly found their potential severely jeopardised. Suddenly, every US games conference was off the radar of hundreds of developers. No GDC, no E3, no nothing. Studios needing to take a couple of days to attend a meeting with a US publisher had the rug pulled from beneath their feet. Chances to meet new staff and find new partners were thrown into disarray.

That inspired Unity Technologies to conceive the ‘Unity Without Borders’ initiative, which sought to bring 50 developers to the Unite Europe conference in Amsterdam last month. After a selection process, Unity would handle and cover travel, accommodation, visas and anything else needed to afford games makers limited by Trump’s ban to engage with the free exchange of ideas that is the founding spirit of almost any game convention.

Meeting the developers brought to Unite as part of Without Borders, it is clear they greatly appreciate the opportunity. That, perhaps, should be obvious, but there is a sense on the show floor that the effort is about more than one middleware-specific company conference.

Ziad MollaMahmud is a man with many skills. By day he is a .NET developer for web applications, while also doing 3D modelling work in the architectural space. A Syrian based in Turkey, he has in recent years embraced game development, acquiring a taste for AR, which he has explored through modest projects of his own conception.

“This is a very, very good opportunity for me,” MollaMahmud says of his success in visiting Unite Europe as part of Without Borders. “It’s a breaking point in my life, where I can move to a better position and change my way of thinking about the future. I believe coming here will have a very good effect over me and my future.”

That’s not to say MollaMahmud is new to being overseas for his career. He estimates that he has visited some 13 countries during his 20-year career, but with the outbreak of Syria’s civil war – and long before the impact of Trump’s presidency – the ambitious developer started to realise global politics would limit his professional potential.

“It’s not only Trump. There’s a lot of restrictions on Syrian’s travelling and doing other things, and that makes it very hard”

“After the Syrian war started a lot of Middle Eastern countries placed travel bans on Syrians, just because of their nationality,” he says. “I was travelling before – without any visa – but after the war they all started to do these travel bans, and I couldn’t travel to the Middle East. It’s not only Trump. There’s a lot of restrictions on Syrian’s travelling and doing other things, and that makes it very hard.”

Those restrictions – whatever their source or motivation – continue today, and in many other ways that also prevent developers from collaborating. Many Iranian and Syrian studios keen to apply for Without Borders were faced with limitations on web access that impeded their submissions for the initiative. There’s a logic to the internet making face-to-face meetings less relevant today, but when the web you can access is restricted presence at real-world events is all the more important. And that was, Unity says, what inspired the Without Borders initiative.

“In some of their communities – especially in countries like Iran and Syria, where they can’t move around as much – they don’t have a lot of access to a lot of game developers or creators,” says Elizabeth Brown, Chief People Officer at Unity, who has been pivotal in implementing Without Borders. “Coming to a conference not only fuels inspiration, but establishes skill sets, sparks ideas and builds networks. They don’t always have access to a local game development community, so they rely on international conferences to feed them and develop their creations and businesses. When they are limited from going to those conferences, they are super limited. That’s as creators, but also as business owners. Some of them are making their living by making games.”

For Brown, this isn’t just a matter of providing those with a passion for games an exciting opportunity; it is about helping developers put food on their tables. Often, that is incredibly limited for a developer restricted to just their home country, market and development community.

“We don’t have anything like this in Iran,” explains Amin Shahidi, as he glances around the main expo hall of Unite Europe, smiling. Shahidi is team lead, animator and game designer at the Tehran-based studio Black Cube Games, and he’s at Unite thanks to Without Borders. “We don’t have these kind of networks,” he continues. “So in Iran, all the movement of developers is very limited, or even blind. So this kind of event – and the moment of being here – is very, very cool and very, very helpful.”

“It shows us that people actually care about us,” adds Ali Boroumand, a game developer at Dutch studio Ferox Games, and a former colleague of Shahidi’s. “We’re all humans, and we’re all pretty much the same people. So it’s very heart warming to think that, even in hard times, people see game developers as game developers. We’re all game developers, and it doesn’t really matter where we come from. We’re all trying to make good games.

“But before this, we had to rule out contributing to any conferences or studios inside the United States. We couldn’t contribute to anything there, and that’s probably a loss on both sides. And beyond the travel ban, there are quite a few other United States restrictions, mostly on money. Selling games outside of Iran is hard for us.”

Boroumand makes a very important point with regard to what Iranian developers have to offer the rest of the global games development community. Restricting developers’ opportunity to travel doesn’t only harm the game industry in their home countries; it equally detracts from the nations they would otherwise be visiting. Collaborating is at least a two-way process, and the learning, inspiration and innovation it engenders rarely passes only in a single direction.

“Syria, like anywhere, has talented people who can bring a lot of things to games development and all technology,” suggests MollaMahmud. “But we need a chance to open the window and say ‘we are here, you can do things for us, and we can do things for you’. We just need a chance to elevate ourselves and do something not just for ourselves, but for all those that make games. We can help your games when we can travel to you freely.”

Equally, there’s an obvious creative opportunity for any studio looking to bring distinct aesthetics and approaches to the global market.

“Iran has quite a long history,” says Boroumand, who is presently based in Sheffield. “The Persian empires have been around for a few thousand years, so Iranian art and Iranian culture is pretty rich in that respect. Games of Iranian art and Iranian influence can bring something to the rest of the world, definitely; something that isn’t often seen.”

There’s an irony to all this, of course. Trump’s travel ban has afforded the Unity Without Borders teams an opportunity to visit a conference they may never have seen had the US President not targeted the various nations blacklisted. For MollaMahmud, however, the irony of opportunity born from limitations runs a little deeper. Buoyed by his experience of attending Unite, he can be remarkably optimistic about a situation that had s dramatic impact on his life.

He believes the horrific Syrian war, which broke out just a couple of years after he returned to live in the country, offers an ultimate example of the potential opportunity hardship can bring game developers.

“After the war is finished – and I hope that is soon – I believe there will be a very good opportunity in Syria for all kinds of business, including game development and software in general,” he considers. “The war will leave a country that will have to start from scratch. Now there are millions of Syrian refugees outside of Syria. It’s really bad to be a refugee, and I believe a lot of refugees are ready to seize the opportunity – having learned many new things – of heading back to Syria.”

Forced displacement is no better than placing mandatory travel restrictions, of course, but in a strange, counter-intuitive way, migration from conflict could represent what freedom to travel can bring in terms of advantages.

“The war, I hope, will finish soon,” MollaMahmud repeats firmly. “Then a lot of people will come back to Syria, and help build our country from scratch. I always say that Germany after the second world war, for example, started from scratch, and they have built a very good, very beautiful, respected country. Then more of us can make successful games.”

MollaMahmud isn’t suggesting that the development of a healthy national games industry justifies a war; not at all. For one, there are more important things than the games industry to consider when a country emerges from conflict. But if Syrians can pool the experience gained through their peoples’ diaspora and establish a game industry to rival Germany’s, it would contribute a great deal to that renewal and rebuilding.

Movement of people can push technology like little else, for the benefit of everyone involved, regardless of their home or country of origin; Apple and AdMob are proof of that. War will likely exist forever, but its horror doesn’t preclude it from being used to inspire positive movements large and small.

Nobody is calling for the forced displacement of people for the benefit of the game industry, of course. But based on the enthusiasm and appetite for learning of every Without Borders developer at Unite Europe, it’s apparent that supporting thoughtful freedom to travel benefits us all.

Courtesy-GI.biz

Facebook Has Plans To Build Housing In Silicon Valley

July 10, 2017 by  
Filed under Around The Net

The housing crunch in California’s Silicon Valley has gotten so bad that Facebook Inc has proposed taking homebuilding into its own hands for the first time with a plan to construct 1,500 units near its headquarters.

The growth of Facebook, Alphabet Inc’s Google and other tech companies has strained neighborhoods in the San Francisco Bay area that were not prepared for an influx of tens of thousands of workers during the past decade. Home prices and commute times have risen.

Tech companies have responded with measures such as internet-equipped buses for employees with long commutes. Facebook has offered at least $10,000 in incentives to workers who move closer to its offices.

Those steps, though, have not reduced complaints that tech companies are making communities unaffordable, and they have mostly failed to address the area’s housing shortage.

“The problem with Silicon Valley is you don’t have enough supply to keep up with the demand,” said Sam Khater, deputy chief economist at real estate research firm CoreLogic.

With Facebook’s construction plan, the company said it wanted to invest in Menlo Park, the city some 45 miles (72 km) south of San Francisco where it moved in 2011.

The company said it wants to build a “village” that will also have 1.75 million square feet of office space and 125,000 square feet of retail space.

“Part of our vision is to create a neighborhood center that provides long-needed community services,” John Tenanes, Facebook’s vice president for global facilities, said in a statement.

The 1,500 Facebook housing units would be open to anyone, not just employees, and 15 percent of them would be offered at below market rates, the company said.

Facebook said it expects the review process to take two years.

Alphabet has taken a smaller step, buying 300 modular apartment units for short-term employee housing, the Wall Street Journal reported last month.

Menlo Park Mayor Kirsten Keith said in an interview that there were concerns about whether the Facebook plan would increase traffic, a subject the city’s planning department would study.

She said, though, that Facebook’s plan fits with the city’s own long-term plan for development, and that the city was excited about the additional housing.

Facebook’s Tenanes said the density of the proposed development could also entice spending on transit projects.

“The region’s failure to continue to invest in our transportation infrastructure alongside growth has led to congestion and delay,” he said.

Facebook Looks To Enter Original Content TV Market

June 27, 2017 by  
Filed under Around The Net

Facebook Inc is holding discussions with Hollywood studios about producing scripted, TV-quality shows, with an aim of launching original programming by late summer, according to the Wall Street Journal.

The social networking giant has indicated that it was willing to commit to production budgets as high as $3 million per episode, in meetings with Hollywood talent agencies, the Journal reported, citing people familiar with the matter.

Facebook is hoping to target audiences from ages 13 to 34, with a focus on the 17 to 30 range. The company has already lined up “Strangers”, a relationship drama, and a game show, “Last State Standing”, the report said.

Facebook could not be immediately reached for comment.

The company is expected to release episodes in a traditional manner, instead of dropping an entire season in one go like Netflix Inc and Amazon.com Inc, WSJ reported.

The company is also willing to share its viewership data with Hollywood, the report said.

Apple Inc hired co-presidents of Sony Pictures Television, Jamie Erlicht and Zack Van Amburg, earlier this month, to lead its video-programming efforts.

Apple began its long-awaited move into original television series last week, with a reality show called “Planet of the Apps”, an unscripted show about developers trying to interest celebrity mentors with a 60-second pitch on an escalator.

The company’s future programming plans include an adaptation of comedian James Corden’s “Carpool Karaoke” segment from his CBS Corp  show that will begin airing in August.

 

Will Doom VR Be A Successful Game

June 21, 2017 by  
Filed under Gaming

Doom is getting a virtual reality (VR) mode that will up the frights and will probably have you clawing at your face.

You know Doom, everyone knows Doom and people are always trying to play it on things that it was never meant to go on, like cash machines and cars, for example.

Doom was born for VR. The facefirst run and shoot game will lend itself very well to the format, and we can admit to wanting a go on it.

There is a reveal trailer, and Doom VFR certainly looks, smells and bleeds like the Doom we have come to know and love. The trailer is marked as unsuitable for some viewers which if you ask us, makes it sound like a perfect trailer for Doom. It is quite a bloody thing, it is certainly exciting, action-packed and violent.

“If you flinched the first time you saw a meaty Mancubus charging at you in last year’s critically acclaimed Doom, wait till you get up close and even more personal with rampaging demons in Doom VFR,” says Bethesda Softworks. “Doom VFR is a new virtual reality game from legendary developer id Software, coming to PlayStation VR and Vive platforms.”

Bethesda and ID Software, the companies behind Doom, said that VR has opened up fresh opportunities for both them and the games that they are aiming it at.

“Developing a Doom game specifically for virtual reality has provided an exciting opportunity to not only surround players with the world of Doom like never before, but also let them experience and explore the UAC and Hell in new ways, playing as new characters with totally unique tools and abilities,” said Robert Duffy, CTO at id Software.

The game’s director, Marty Stratton, explained that Doom VFR gives the fans what they want. “Since the hallmark of any Doom game is combat, we’ve made it our top priority to ensure moving, shooting and killing demons with overwhelming force in virtual reality is as brutal and rewarding as it is in the Doom experience that fans have been enjoying for the past year.”

Courtesy-TheInq

Will The US Video Game Industry Grow To A 28 Billion Dollar Market

June 16, 2017 by  
Filed under Gaming

According to the 18th PwC Global Entertainment and Media Outlook 2017-2021, which covers a number of major industries (not just games), the total video games revenue in the US is expected to grow at a 6.3% CAGR rate to reach more than $28.5 billion by 2021. The research firm notes that the PC games sector looks a bit rosier than consoles in the next few years in terms of growth. While total PC games revenue in the US is set to grow from $3.7bn in 2016 to $5.0bn in 2021, at a 6.6% CAGR, consoles will only grow at a 2.8% CAGR, hitting $9.4bn in 2021.

Consoles’ slowed growth “can be attributed to the increase in digital full game downloads which is mostly offset by a decline of physical console game sell-through revenue, which is set to drop by a 4.3% CAGR during the forecast period,” PwC noted. At the same time, the PC sector is seeing “healthy growth” in the online/microtransactions department – online PC revenue is expected to climb at a 7.0% CAGR to $4.2bn by 2021. PwC said that much of this can be attributed to the ongoing success of F2P, more subscription services and the rise of eSports. Digital sales on consoles are getting stronger and stronger as well, expected to grow at a 9.8% CAGR to hit $3.7bn by 2021 – but as noted above, the decline in physical is still offsetting much of this growth.

Virtual reality continues to draw lots of attention across the industry, and according to PwC, the segment should grow at an impressive 64% CAGR to reach $5bn by 2021, or roughly 17% of the entire US games business revenue total. The firm estimates that dedicated high-end VR (Rift, Vive, PSVR) should climb to an installed base of 13 million by 2021, while the overall VR headset installed base will reach 68 million. Additionally, “Portable dedicated headsets – a new category of self-contained headset that will emerge from 2017 designed exclusively to render VR experiences – will have an installed base of 5.3mn by 2021 (CAGR of 87.5%) because of their superior capabilities compared to smartphone-based devices, and ease of use,” the firm said.

While games as a technology have been the driver of VR, PwC expects VR content revenues to be driven by non-gaming experiences like VR video, which will “grow at a CAGR of 87.8% to represent 58.3% of overall content spending in 2021. It will surpass interactive experiences and games revenue…in 2019.” PwC remarked that established media like Netflix, HBO and ESPN, would play a big part in driving VR content along with major game publishers; that said, “expect smaller developers like Jaunt to get an increasing share of this content revenue as they act as the technical partners for both the big studios and non-specialist start-ups.”

The other smaller, but quickly growing segment that should boost total industry revenues in the US is, of course, eSports. PwC expects the sector to grow at a 22% CAGR to reach almost $300 million in 2021. Streaming advertising is the lion’s share of that total at $149 million, but sponsorships, voluntary consumer contributions and ticket sales all add to the pie as well.

“The US is the largest market in revenue terms, having overtaken South Korea in 2015, although the latter will stay far ahead in terms of per-capita revenue,” PwC explained. “The development of eSports has grown at a breakneck pace in the US over recent years, receiving perhaps its biggest boost into the mainstream when ESPN began covering major events on both its streaming and regular channels – most notably the August 2015 final of The International, a tournament for Defense of the Ancients 2 (Dota 2). In September 2015 the company even advertised for an eSports general editor, in recognition of the specialist knowledge required to cover the discipline comprehensively.”

Streaming sites are still the dominant medium for eSports viewing, however. Amazon-owned Twitch is said to rank behind Netflix, Google (YouTube) and Apple in terms of peak internet traffic, PwC noted. There’s no doubt that eSports is capturing the attention of major corporations and advertisers. “Companies are moving in swiftly to sponsor both teams and events, with fast-moving consumer goods companies like Coca-Cola, Doritos and Snickers all forging a niche…

“Notably, in September 2016 the NBA’s Philadelphia 76ers bought the long-time franchise Dignitas and Apex, which offers a guaranteed spot in the League of Legends circuit. For the 76ers, the purchase offers an opportunity to diversify into a market that is particularly popular with the protean 18-24-year-old market and get a named presence at eSsports tournaments, while their newly signed-up players can also live-stream and create content under their parent owner’s banner. If the space continues to grow exponentially, sports teams such as the 76ers that become early movers will have the upper hand – as well as a usefully sized stadium for hosting tournaments. Certainly signs are positive here, with the NBA in February 2017 announcing plans to create a new league based around the game NBA 2K.”

Courtesy-GI.biz

Is Digital Rights Management On The Way Out?

May 8, 2017 by  
Filed under Around The Net

Two years ago, Cory Doctorow joined the EFF’s campaign to eliminate DRM within eight years and he claims that he is on target to do that thanks to tractors

Talking to the DEF CON hacking conference, Doctorow said that the farmers and the Digital Right To Repair Coalition have done brilliantly and have a message which is extremely resonant with the political right as well as the political left.

The entertainment industry seems to oppose extending the DMCA to tractors and if Big Content, which is very proprietary towards laws that protect DRM, thinks that it is silly then it acknowledges that there are cases were DRM is bad.

“They really feel that they lobbied for and bought these laws to protect the business model they envisioned. For these latecomer upstarts to turn up and stretch and distort these laws out of proportion has really exposed one of the natural cracks in copyright altogether,” he said.

Doctorow one good thing which will come from Brexit, is that the UK will renegotiate and reevaluate its relationship to the Organisation for Economic Co-operation and Development and other directives.

“The UK enjoys a really interesting market position if it wants to be the only nation in the region that makes, exports, and supports DRM-breaking tools,” he said.

Courtesy-Fud

Twitter, Bloomberg To Team Up On Streaming TV News Service

May 2, 2017 by  
Filed under Around The Net

Twitter Inc is teaming up with Bloomberg Media for a round-the-clock streaming television news service on the social networking platform, according to a report by the Wall Street Journal.

The channel, which is yet to be named and is expected to begin operations this fall, would be announced Monday, WSJ said.

Twitter’s user growth has stalled in the past few quarters and the company has been trying to convince advertisers that it will strengthen its user base.

As part of its efforts, it has updated its product offerings including live video broadcasts from its app and launched new features to attract users.

Twitter CEO Jack Dorsey said in an internal memo last October one of the company’s missions was defined as being the “people’s news network”.

Twitter has made a push into news and sports on mobile devices last year and this foray could pique the interest of a media company as an acquirer, analysts have said.

Can Washington D.C. Become The Center Of eSports?

March 22, 2017 by  
Filed under Gaming

Washington D.C. intends to become the home of eSports in the United States, with a strategy that includes sponsorship of the NRG Esports team and the construction of a $65 million stadium.

The city’s plans, which were revealed to Mashable, will be executed by Events D.C., the District of Columbia’s convention and sports authority. The deal with NRG Esports is among the first instances of a city sponsoring a pro gaming organisation, and Washington D.C. will now have its logo and branding on NRG teams’ uniforms, livestreams and websites.

NRG, which has teams competing in Overwatch, Counter-Strike: GO, Hearthstone and Rocket League, has roots in the world of traditional sports. It was founded by Andy Miller and Mark Mastrov, the co-owners of the NBA’s Sacramento Kings, and counts the basketball player Shaquille O’Neal and the baseball stars Alex Rodriguez and Jimmy Rollins among its investors.

“This is just another prong in our strategic approach to continue to make D.C. a great place to live and work and play,” Events D.C. chairman Max Brown told Mashable, highlighting the number of students attending the city’s many universities.

“There are lots of younger kids who are here and are coming here every year through our universities, so we think it makes a lot of sense for us as a city to plant a flag [for eSports], and ultimately be the capital of eSports like we’re the capital of the United States.”

There are other “prongs” to the city’s strategy, the most notable being the construction of a new stadium. The arena will be used by the WNBA team the Washington Mystics, as well as other events, but it is being built “with eSports in mind.”

“A $65 million 4,200-seat, state-of-the-art arena,” Brown added. “[It will] come online in late-2018, early-2019. Fully tailored and wired for esports.”

Courtesy-GI.biz

Mass Effect: Andromeda PC Specs Revealed

March 6, 2017 by  
Filed under Gaming

EA and Bioware have released official PC system requirements for its upcoming Mass Effect: Andromeda game that has gone gold and will be launching on March 21st.

According to details provided over at EA’s Origin site, those looking to play the new Mass Effect game will need at least an Intel Core i5-3570 or AMD FX-6350 CPU, 8GB of RAM and Nvidia Geforce GTX 660 2GB or AMD Radeon HD 7850 2GB graphics card.

The recommended system requirements rise up to an Intel Core i7-4790 or AMD FX-8350 CPU, 16GB of RAM and either an Nvidia GTX 1060 3GB or AMD RX 480 4GB graphics card.

Both minimum and recommended system requirements include at least 55GB of storage space as well as a 64-bit version of Windows 7, Windows 8.1 or Windows 10 OS.

The official release for the game is set for March 21st in the US and March 23rd in Europe and it will be coming to PC, Playstation 4 and Xbox One. Those with EA Access and Origin Access should get the game five days earlier.

Courtesy-Fud

Verizon Reportedly Gets Discount On Yahoo Acquisition

February 17, 2017 by  
Filed under Around The Net

Verizon Communications Inc  is close to an updated deal to purchase Yahoo Inc’s core internet business for $250 million to $350 million less than the original agreed price of $4.83 billion, according to a source briefed on the matter.

Since last year, Verizon had been trying to persuade Yahoo to amend the terms of the acquisition agreement to reflect the economic damage from two cyber attacks. A source told Reuters that the deal, which could come as soon as this week, will entail Verizon and Yahoo sharing the liability from potential lawsuits related to the data breaches.

Another person familiar with the situation said the price cut was likely to be around $250 million, a figure that Bloomberg reported earlier on Wednesday.

A representative from Verizon declined to comment. Yahoo did not immediately respond to requests for comment.

“Maybe this isn’t quite as much of a discount as initially thought, but it’s at least something,” said Dave Heger, senior equity analyst at Edward Jones.

Verizon hopes to combine Yahoo’s search, email and messenger assets, as well as advertising technology tools, with its AOL unit, which Verizon bought in 2015 for $4.4 billion. Verizon has been looking to mobile video and advertising for new sources of revenue outside an oversaturated wireless market.

But Sunnyvale, California-based Yahoo has been under scrutiny by federal investigators and lawmakers since disclosing the largest known data breach in history in December, months after disclosing a separate hack.

The U.S. Securities and Exchange Commission has launched a probe into whether Yahoo should have disclosed the breaches, which occurred in 2013 and 2014, sooner, according to a report in the Wall Street Journal last month.

On Wednesday, Yahoo sent a warning to users whose accounts may have been accessed by intruders between 2015 and 2016, as part of a data security issue related to the breach it disclosed in December. A person familiar with the matter said notifications have gone out to a mostly final list of users.

Facebook Launches App For Smart TVs

February 16, 2017 by  
Filed under Consumer Electronics

Facebook Inc is launching an app for smart TVs that will aid the social network’s users in being able to view its videos on a larger screens.

The app will roll out soon from app stores for Apple TV, Samsung Smart TV and Amazon Fire TV, the company said in a blogpost on Tuesday.

The blogpost also said users can scroll through their news feed and simultaneously watch videos on their timeline.

 Sound also fades in and out as one scrolls through videos in news feed now. Videos in news feed have previously played silently — one needed to tap on a video to hear its sound.

The Wall Street Journal reported last month that Facebook was creating an app for TV set-top boxes that would bring the company closer to live video and video advertisements.

Facebook Chief Executive Mark Zuckerberg during a post-earnings call said this month that the company expected a major ramp-up in hiring and other spending during 2017 as it invests in video and other priorities.

The company last year expanded its live video product, Facebook Live – a potential threat to broadcast television.

Are Publishers Missing The Billion Dollar Opportunity Of eSports?

February 6, 2017 by  
Filed under Gaming

The traditional sports ecosystem is dominated by three models of organisation. The most decentralised sports, like the PGA Tour or NASCAR, consist of largely independently organised competitions, which are sanctioned and governed by an administrative body and are open to any qualifying athlete. From there, we have typical leagues like the NBA or Premiership, which have a set number of recurring teams and players, and are extensively managed by a league front office that’s owned by each team.

eSports are quite different. If you choose to race without NASCAR or play basketball without the NBA, there’s nothing – and no official body – that can prevent you from replicating the experience. No one ‘owns’ racing or basketball, but someone does own Overwatch, and if you want to play you essentially have to go through that company. If you wanted to create your own eSports league, your ability to market or represent it would be entirely dependent on the legal team of the game’s publisher. Furthermore, the core experience is fully controlled by that publisher.

“No one ‘owns’ racing or basketball, but someone does own Overwatch, and if you want to play you essentially have to go through that company”

Leagues that are operated or endorsed by publishers can do unique things – e.g. item drops, exclusive/first-release capabilities, bundled original content – and offer unique monetisation opportunities. Three months before The International, the annual world championship for Dota 2, Valve sells interactive in-game items that directly contribute to the tournament prize pool. This model has been so successful that, in 2016, the prize pool reached $19.17 million.

Most tier-one publishers also handicap the data streams that the public can leverage. Whereas in traditional sports there are multiple providers of a firehose of sports data, game publishers offer barebones APIs that allow access to little more than character information and select match data. Valve offers an open API but, as events this year have demonstrated, it can shut off access and change policy at any time. On the platform side, Twitch is miles ahead of its competitors in terms of creating an external ecosystem thanks to its two year head-start and passionate developer community, but it maintains an ever more precarious balance between build vs. buy.

Because of these walled gardens, the investible opportunities within eSports often end up being features not products, which set them and their investors up for more of an acquihire than a Twitch-esque exit. There’s a strong argument to be made to publishers that working with third-party developers will lead to a stronger overall bottom line, foster innovation and provide defensibility.

Economics 201

It’s no secret that being a top publisher is a lucrative business. Activision reported $1.57 billion in revenue for Q2 of 2016 and EA $1.271 billion. It’s rumoured that Valve’s 2015 revenues reached $3.5 billion in 2015, and Riot Games’ over $1.6 billion. It’s not hard to see why partnerships with third parties and external API infrastructure aren’t a priority with so much money flowing, but that’s shortsighted. As publishers start thinking about how to monetise beyond game licenses and IAP, every moment not spent developing the ecosystem is a wasted one.

This isn’t unparalleled, and we can see examples of where large platforms in other verticals have made the decision to invest in their future, often early on in their company lifecycle. Salesforce, an enterprise software company, has a market cap of $50 billion. A report last year by IDC put the opportunity front and center: the AppExchange currently generates 2.8x the revenue of Salesforce itself and is expected to grow to 3.7x the size of Salesforce.

“As publishers start thinking about how to monetise beyond game licenses and IAP, every moment not spent developing the ecosystem is a wasted one”

Slack, the enterprise collaboration tool darling, also gets it. Even before raising money in April 2016, at a $3.8 billion valuation and boasting over 1.25 million paying users, they announced the Slack fund in December 2015 - an $80 million investment into supporting new integrations. Slack and Salesforce could have gone the closed route and developed these integrations and products internally, but they understood that the immediate revenue trade-off was well worth the ability to focus on creating the best core product possible, in addition to leveraging minimal company resources.

Now to everyone’s favourite eSports comparison : traditional sports. During the height of the daily fantasy sports craze in 2014/15, the NBA entered a multi-year partnership with FanDuel that gave it an ownership stake. The NFL expanded its partnership with Providence Equity in 2013, investing $300 million to participate in, “media and technology deals where it believes the league could help play a strategic role.” And these are just a few examples. Partnering with and investing in new properties allows older, larger establishments to participate in the upside of nascent industries quickly and cheaply.

Publishers are thinking about the shelf-life of games.  The NFL and NBA will both be around in 25 years, but what about League of Legends or Counter-Strike? Opening up the ecosystem not only benefits players and fans by allowing them an outlet to interact with their favorite IPs, but ultimately enhances the core value of those IPs and gives publishers an opportunity for additional exposure through revenue share, API fees and strategic investments.

In addition to commercial benefits, let’s look at network effects. Valve is the publisher of both Counter-Strike: Global Offensive (25 million+ copies sold, 8.2 million+ players in the last two weeks), and Dota 2 (87 million+ times downloaded, 11 million+ active players in the last two weeks.) While the titles have richer histories than virtually any other competitive esport, Valve’s open API, developer tools and hands-off approach has contributed to their sustained success and status as two of the top eSports titles.

ELeague, FaceIt Esports Championship Series and Gfinity, ESL One and IEM. These streams of revenue have contributed to a high demand for professional CS:GO players, leading to lucrative contracts and opportunities.

3: The most lucrative has been the in-game skins economy, which allows players to purchase crates that contain different cosmetic versions of CS:GO weapons or Dota 2 items. During major tournaments, Valve has offered exclusive stickers that generate up to high six-figures for qualified teams. Valve has also allowed free reign on opening up use cases within this skins economy, which led to wagering, gambling and marketplaces (Bloomberg estimated yearly transaction volume to be >$7 billion.) Variations of this model have since been followed very conservatively by multiple franchises, including Call of Duty, Halo, H1Z1 and Overwatch.

On the platform side, Twitch’s dominance in livestreaming can largely be credited to going all-in on eSports first, but Twitch also has numerous native or platform exclusive features for its users. Diving deeper, this experience is powered by a blend of features that were built in-house or created by third parties. Examples include:

Bits, preceded by Streamlabs and StreamTip: direct donations from viewers are one of the foundations of a streamer’s income.

Clips, preceded by Oddshot, Plays.tv and Forge: allows viewers and creators to efficiently capture highlights and share to different social media channels.

Subscriptions / Partner Program and 3rd-party services (Revlo, Gamewisp and Curse/Discord integrations): subscriptions are another big source of income for streamers, and the third-party services all add further value to a sub and reduce churn.

TwitchPlays: what started out as a fun social experiment (TwitchPlaysPokemon) is now its own category to interact with potential customers for publishers.

Chatbots (Moobot, Nightbot and Xanbot): automated assistants that help moderate chat to prevent spamming and inappropriate behaviour.

Stream+ currency: Twitch’s new currency announced at TwitchCon 2016, which will allow developers to integrate monetisation options directly into games.

Facebook Live has launched to much fanfare, and given the massive distribution channel it will always be a huge threat. However, until it can get to feature parity Facebook Live will need to rely on traditional media partnerships or viral hits to create consistent content. These types of partnerships don’t scale when we’re talking about the individual streamers and professional players that have played a large part in getting Twitch to 100m+ MAUs, although the signing of G2 and Heroes of the Dorm is a good first step. YouTube Gaming is farther along and is doing a great job of starting to launch some analogous features.

How, then, should publishers look to partner with entrepreneurs and third parties? I’d like to see publishers create a vehicle, individually or collectively, in the model of Disney Accelerator, to offer mentorship, funding and support to kick-start the next generation of eSports businesses. Publishers should be developing their games as platforms, not individual entities - tons of data are being generated and archived and there is a treasure trove of use cases for them.

I’m confident that we’re slowly moving in the right direction. One day we’ll see a truly open ecosystem with publishers and third parties living in harmony.

Courtesy-GI.biz

Yahoo Under Scrutiny By SEC Over Hacking

January 24, 2017 by  
Filed under Around The Net

The U.S. Securities and Exchange Commission is investigating a previously disclosed data breach at Yahoo Inc, the company published in a recent filing.

Yahoo said in a November 2016 quarterly filing that it was “cooperating with federal, state and foreign” agencies, including the SEC, that were seeking information and documents about a “security incident and related matters.”

The SEC is investigating whether two massive data breaches at Yahoo should have been reported sooner to investors, the Wall Street Journal reported on Sunday, citing people familiar with the matter.

 An SEC spokesman declined to comment. A Yahoo spokesman directed Reuters to the company’s November filing.

Yahoo has faced pointed questions about exactly when it knew about a 2014 cyber attack it announced in September that exposed the email credentials of half a billion accounts.

In December, Yahoo said it had uncovered yet another massive cyber attack, saying data from more than 1 billion user accounts was compromised in August 2013.

The SEC issued requests for documents in December, as it probes whether the technology company’s disclosures about the cyber attacks complied with civil securities laws, the people said, according to the Journal.

Securities industry rules require companies to disclose cyber breaches to investors. Although the SEC has long-standing guidance on when publicly traded companies should report hacking incidents, companies that have experienced known breaches often omit those details in regulatory filings, according to a 2012 Reuters investigation.(reut.rs/2dblx5S)

Democratic U.S. Senator Mark Warner asked the SEC in September to investigate whether Yahoo and its senior executives fulfilled obligations to inform investors and the public about the 2014 hacking attack.

The disclosures from Yahoo about both breaches came after the company agreed to sell its main business to Verizon Communications Inc in July, triggering questions about whether the deal would still be viable and, if so, at what price.

It Appears That The Video Games Market Had A Bang-Up Year

December 30, 2016 by  
Filed under Gaming

Games generated $91 billion worldwide in 2016, according to a report from beancounters at SuperData Research who have been adding up some numbers on Christmas Party napkins.

Most of the cash was made in the mobile game segment some $41 billion (up 18 percent), followed by $26 billion for retail games and $19 billion for free-to-play online games.

Beancountrs at SuperData said that the new categories such as virtual reality, esports, and gaming video content were small in size, but they are growing fast and holding promise for next year. Hardware firms like Sony and HTC to take the lead in 2017. Still,

VR grew to $2.7 billion in 2016. Gaming video reached $4.4 billion, up 34 percent.

Mobile gaming was driven by Pokémon Go and Clash Royale. The mobile games market has started to mature and now more closely resembles traditional games publishing, requiring ever higher production values and marketing spend. Monster Strike was the top mobile game, with $1.3 billion in revenue.

The esports market generated $892 million (up 19 percent) in revenue. A string of investments in pursuit of connecting to a new generation of media consumers has built the segment’s momentum, as major publishers like Activision, Riot Games, and EA are exploring new revenue streams for selling media rights, according to the report.

Consumers increasingly download games directly to their consoles, spending $6.6 billion on digital downloads in 2016 which has helped improve margins.

PC gaming continues to do well, earning $34 billion (up 6.7 percent) and driven largely by free-to-play online titles and downloadable games. League of Legends together with newcomers like Overwatch are driving the growth in PC games.

PC gamers also saw a big improvement with the release of a new generation of graphics cards.

Courtesy-Fud

Apple’s Postponed AirPod Headphones Finally Go On Sale

December 15, 2016 by  
Filed under Consumer Electronics

airpods-1-150x150Apple finally began selling the delayed AirPods, but the wireless headphones almost immediately predicted  a 2017 ship date.

The Cupertino, Calif. company warned customers that the product would be available in “limited quantities at launch.”

The $159 headphones — which resemble enlarged ear buds sans wires — debuted on Apple’s online store earlier Tuesday. Within minutes, the estimated ship date shifted from Dec. 21 to mid-January 2017.

 Apple introduced the AirPods in September, alongside the iPhone 7 and 7 Plus. At the time, executives said that the headphones would be available in October. Late in October, however, Apple confirmed that the AirPods were delayed, saying, “We need a little more time before AirPods are ready for our customers.”
Apple’s Tuesday press release did not offer a reason for the two-month delay, but added that the headphones will be available in Apple’s retail stores next week.

Today’s launch came just four days after a report by the Wall Street Journal, which claimed that the AirPods would miss the holiday selling season.

 

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