05/03/18: E3 is shoring up its esports presence this year, expanding E3 ESL Arena

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It’s Thursday May 3, 2018 and this is your weekly early morning Esports briefing. (Congrats! In the years we’ve been publishing this edition, this will mark the first issue where there are more Activation stories than Competition ones.)
 


E3 is poised to upgrade its embrace of the esports experience, as the Entertainment Software Association and ESL unveiled plans for the brand new E3 ESL Arena, running June 12-14 in Los Angeles. The main stage will feature custom player experiences with analysts and casters, giving the audience “up-close VIP access to the world of competitive esports.” “Competitive video games are taking sports entertainment by storm, with the global esports audience reaching 335 million people in 2017,” said Michael D. Gallagher, president and CEO of ESA. “With the addition of the E3 ESL Arena, E3 2018 is set to be a non-stop, edge-of-your-seat ride of video game announcements, demos, and competition.”
 
 
COMPETITION and VENUES

E3 will also feature tournaments from Nintendo, kicking off with two days of competitive action at the Belasco Theater in LA on June 11 as qualifying teams representing the United States/Canada, Japan, Europe and Australia/New Zealand will ink their way to glory in the opening rounds of the Splatoon 2 World Championship tournament. The finals will take place the following day on Tuesday, June 12, immediately followed by the Super Smash Bros. Invitational 2018 tournament, which will pit invited players against each other in the recently announced Super Smash Bros. game for Nintendo Switch. “Every year we take a look at E3 and craft the best experience for our fans, regardless of whether they are attending the show or watching from afar,” said Doug Bowser, Nintendo of America’s Senior Vice President of Sales and Marketing. “We expect that each of our E3 activities will give an additional boost to the already strong momentum enjoyed by Nintendo Switch.”
 
Riot Games unveiled its Summer Split schedule with the NA LCS Summer Split slated to begin on June 16 (as 100 Thieves and Team Liquid square off to open play) and running through Aug. 19, before the playoffs kick in. EU LCS plans have not yet been revealed.
 
Tapping into the talent of the top 150 players from each country, the 2018 Overwatch World Cup locked in group play rosters from the 24 qualifying countries who will play a round robin schedule and the top two countries from each group moving on to the Overwatch World Cup Top 8 at BlizzCon. Group Stage – South Korea will include: Team South Korea (host country); Team Chinese Taipei; Team Finland; Team Hong Kong; Team Japan; and Team Russia. Group Stage – United States will feature: Team USA (host country); Team Austria; Team Brazil; Team Canada; Team Norway; and Team Switzerland. Group Stage – Thailand showcases Team Thailand (host country), Team Australia, Team China, Team Denmark, Team Spain and Team Sweden. Finally, Group Stage – France serves up: Team France (host country); Team Germany; Team Italy; Team Netherlands; Team Poland; and Team United Kingdom.
 
The National Association of Collegiate Esports signed a partnership agreement with Hi-Rez Studios to build varsity esports competition in both SMITE and Paladins.  The partnership will help provide the necessary infrastructure and resources for colleges and universities to expand their esports departments into additional esports, creating valuable opportunities for more students to compete and earn degrees. The deal will see both orgs create recruiting systems and outreach to help connect coaches and interested students together with seasons coordinated with Hi-Rez’s professional leagues.  Competition will start beginning in August.
 
Amazon announced that Mobile Masters 2018 would run June 23-24 at Amazon’s HQ in Seattle, dangling a $100,000 prize pool for games that include Power Rangers: Legacy Wars, Survival Arena, World of Tanks Blitz and Critical Ops. Power Rangers: Legacy Wars and Survival Arena will be running early round qualifiers for players to earn a spot, powered by GameOn, Amazon’s recently launched competitive gaming service.
 
The Season 5 RLCS World Championship is London bound with Psyonix announcing that the season will wrap up at the Copper Box Arena from June 8-10. The Rocket League championship pits ten teams fighting for a $250,000 prize pool.
 
The first Esport Superstars: Paladins tournament at Esports Arena Las Vegas has its platform locked and loaded. The event runs on May 5 and 6 and features six top professional teams battling for a $100,000 prize pool, running on Twitch starting at 12:30p PT.
 
Oct 1 will kick off the world’s biggest esports business event with the Esports Business Summit, a three-day deep dive into the industry with debate, open conversation, awards, killer networking and an A-list lineup of speakers. Just announced… four workshops for fine-tune your game before the action begins: Esports 101, Esports for brand and sports marketers, Collegiate Esports and How to produce an esports event. Give me a shout if you are interested in speaking/teaching at these workshops.
 
 
INSIGHTS


This week, the NBA 2K League Tip-off tournament aired its first ever pilot broadcast from its New York Studio. Viewers tuned into the Twitch broadcast to watch 4 teams compete, and see how traditional sports leagues are tackling esports. Here are the takeaways:
Of the 276K viewers that tuned into the broadcast, 13.3K showed up to watch Kings Guard Gaming, managed by Shaquille O’Neal, take on Cavs Legion GC. The Cavs edged out the Kings by just 3 points. 3 out of the top 5 emotes express messages of support and positive sentiment (Never Stop Grinding, We Live, Big Shot), signifying that 2K League is likely to be a Brand Safe environment.
Source: Streamhatchet.com
 
 
ACTIVATION


Immortals and Microsoft are blazing a new partnership path, announcing place to co- host a series of events in 2018 focused on “increasing access to esports by targeting both students and minority communities in gaming.” Events will see executives from Immortals, which owns and operates the Los Angeles Valiant franchise in Overwatch League, and Microsoft appearing together, including at this week’s Milken Institute 2018 Global Conference. The first, part of the Los Angeles Valiant’s “Be Valiant” community event series will take place on May 19 at the Microsoft Lounge in Culver City.
 
Meanwhile, heritage footwear brand K-Swiss also inked a new partnership with Immortals, to launch the first signature sneaker for a professional gaming team. The first offering in the partnership with Immortals is based on the Kompass, K-Swiss’ latest style that melds cutting-edge technology with a sleek aesthetic. Incorporating engineered mesh with four-way stretch on the upper, the lace-up sneaker emulates a sock molding the foot like second skin. The lifestyle shoe for Immortals will launch to consumers in December for a suggested retail price of $110. Distribution will include select retailers and kswiss.com.
 
FlyQuest Sports stuck a deal with Fathead to launch of a FlyQuest product line of wall graphics. This agreement marks Fathead’s entrance into the competitive world of esports, making FlyQuest the first officially licensed team offered through Fathead and its third-party retailers The partnership with FlyQuest will incorporate various FlyQuest inspired designs into wall decals, wall murals and big head cutouts.
 
The launch of the NBA 2K League saw a bevy of deals cemented before opening tipoff. One partnership announced will make Scuf Gaming the Official Gaming Controller of the league. The partnership will also include a merchandising component, giving fans of the NBA 2K League the chance to game with the same official NBA 2K League controllers that will be used in competition.
 
Meanwhile, the NBA 2K League will also see athlete endorsed footwear designer ISlide courtesy of a licensing deal to design and sell custom slides for all league teams. The slides are now available for all 13 teams for just $49.99 on the ISlide website.
 
Continuing the theme, NBA 2K League team Cavs Legion, owned operated by the Cleveland Cavaliers, named Quicken Loans’ Rocket Mortgage as a founding partner, joining Hot Pockets under the moniker. Logos for both companies will appear on the teams virtual in-game uniforms.
 
Monumental Sports & Entertainment and Events DC, the District’s convention and sports authority, announced a partnership to make Events DC a sponsor of Wizards District Gaming, beginning with its inaugural season in 2018, as a member of the NBA 2K League. “As the official convention and sports authority of the District, Events DC’s partnership with Monumental Sports & Entertainment to sponsor Wizards District Gaming fortifies our city’s commitment to the future of esports in Washington, DC.  Cities are competing on a global level to drive tourism, new events and economic impact to their region – and esports is just another opportunity for DC to lead the country,” said Max Brown, Chairman, Board of Directors at Events DC. “Our collaborative partnership with MSE in the esports landscape is vital for our city’s growth in this rapidly-expanding vertical.”
 
Monumental Sports & Entertainment also locked in a deal with Giant Food, the leading DC regional grocery chain, to make Giant Food a sponsor of Wizards District Gaming beginning with the new season. Giant Food’s logo will be featured on in-game on-court signage, around player accounts and at the Wizards District Gaming Practice Facility. Additionally, Giant will be highlighted as a sponsor in various in-game virtual assets. Giant Food will retain exclusive ownership of a number of streamed practice sessions and games throughout the season.
 
The Utah Jazz partnered with SpaceStation Gaming, the multi-game esports team founded by Salt Lake City-based social media influencer Shaun “Shonduras” McBride, according to ESPN. The Jazz and SpaceStation will share marketing efforts and resources as they continue to push into the esports space.
 
Finally, NBA 2K League launched a tip-off spot titled It’s Our Time. The promo showcases a variety of players participating in the new league, which debuts on May 1. Narrated by Yeah I Compete, a member of the inaugural class, the spot introduces viewers to the players and combines visuals of the players with in-game moments, alternating between the two as the league’s new players proclaim that, at last, “it’s our time.”
 
Turtle Beach inked a multi-year extension of its partnership with OpTic Gaming. The updated agreement will continue seeing Turtle Beach arming OpTic’s World Champion Call of Duty and Gears of War teams, as well as OpTic’s Counter Strike: Global Offensive (CS: GO) team with its Elite Pro line of gaming headsets and additional gear, and now extends and includes OpTic’s DOTA 2 and PUBGsquads. Additionally, other esports franchises under Infinite Esports & Entertainment – OpTic Gaming’s holding company, are also a significant part of this partnership expansion, with further details to be revealed over the coming weeks.
 
Esports squad North locked in a global deal with Adidas that will see their players compete in Adidas merchandise for the remainder of 2018, according to Esports Insider.
 
ESL locked in a deal with global telecommunications giant Vodafone that will span a variety of ESL’s flagship events, including the Intel Extreme Masters, ESL One and the ESL Pro League. Vodafone will also work with ESL to support a series of initiatives that promote diversity and female participation in historically male-dominated esports activities. Vodafone will become a Premium Partner of the female esports challenge held during the IEM Sydney, and will collaborate with the world’s top female esports personalities to highlight the opportunities for women to participate professionally in esports or pursue a career in the esports industry.
 
 
PLATFORMS


MSG Networks announced the upcoming debut of Knicks Gaming, described as a first-of-its kind show that will feature the official NBA 2K League team of The Madison Square Garden Company throughout their inaugural season competing in the new professional eSports league. The 30-minute series runs on Tuesday nights throughout the summer starting May 8 at 10p. The new show will chronicle the team’s collective journey during their first season in the NBA 2K League. Actor Jerry Ferrara (Entourage and Power), who was hired as the team’s Head Scout and Creative Consultant, will be prominently featured throughout the series.
 
Turner and IMG’s ELEAGUE will premiere the third episode of its first reality television series – ELEAGUE The Challenger: Street Fighter® V with a special appearance from Grammy-winning recording artist and fighting game enthusiast Lupe Fiasco. In the episode, Fiasco will orchestrate a three vs. three team-based Street Fighter showdown, as the five remaining contestants aim to will their team to victory and avoid potential elimination. The ep runs Saturday at 2a on TBS.
 
The Twitter Newfront presentations also saw the platform unveiled its lineup of gaming and esports-themed programming on the schedule. Content is set to include the Call of Duty World League including highlights and finals from CWL Anaheim Open (June 15-17), CWL Pro League- Stage 2 Playoffs (July 27-29), and the 2018 Call of Duty Championship (August 15-19); the Game Awards; Gamespot; IEM; and IGN. For more info, check out our interview with Twitter below.
 
FilmRise is set to release John Keating’s “Gamechangers: Dreams of BlizzCon,” a feature length documentary that explores esports as seen through the eyes of StarCraft II players – Mun “MMA” Seong Won and Jang “MC” Min Chul. Content will be available for sale and rental on Prime Video, iTunes, Google Play, and Vudu, beginning June 12. The film was produced by Wild West Productions with producers Peter Billingsley, Daniel Chalfen, Zachary Henderson and Vince Vaughn Executive Producers are Joel Cheatwood along with John Kingston and Laura Smith through Kingston Road Pictures.
 
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TEAMS


Fnatic announced today the release of the Fnatic Gear Generation 2 hardware line, marking the next step for pro gaming equipment: the STREAK and miniSTREAK keyboards, as well as CLUTCH 2 and FLICK 2 mice. All products are available now online in the Fnatic Shop, and Amazon Europe, along with Best Buy, which becomes the exclusive US retailer for the products. The development and launch of the Fnatic Gear Generation 2 line of gaming peripherals further emphasizes Fnatic’s mission to lead the world’s fastest growing sport into every household through content, products and experiences. ““It’s been an incredible experience being invested in end-to-end product development of the Fnatic’s Gear Generation 2 line, which took two rigorous years to perfect,” said Felix Guerra, Fnatic Head of R&D and Engineering. “The team spent countless hours listening to feedback from players and fans, to create the product line that’s fully loaded with new features and built-in functionality to give gamers everything they need to perform.”
 
ReKTGlobal continued to add high-profile investors to its umbrella, announcing that members and management of multiplatinum band Imagine Dragons had joined the roster of owners. In addition to stake in ReKTGlobal, Daniel Platzman and Wayne Sermon of Imagine Dragons join Grammy-nominated artist Steve Aoki as co-owners of ReKTGlobal’s Las Vegas-based esports organization Rogue. “We love gaming and esports and have been looking for new ways to contribute to this community for a long time—but we never found the right fit until now,” said Mac Reynolds, Manager of Imagine Dragons. “We expect to see esports continue its rapid growth internationally, and we think Rogue and ReKTGlobal are the partners who will help make our hometown of Las Vegas the premiere team and gaming event destination.”
 
76ers Gaming Club announced that Jeff Terrell has been named the team’s first-ever head coach. Terrell will oversee the team’s player management, practice schedule and day-to-day performance.
 
 
INDUSTRY


2018 will see, for the first time ever, the global games industry pull half of its revenue numbers from mobile platforms, according to the latest Global Games Market report from Newzoo. The company forecasts a base of 2.3 billion gamers worldwide who will spend a total of $137.9 billion on games this year, up 13.3% year-over-year. While mobile now taking up the majority of the space, console revenues would reach $34.6 billion for the year for 25% of the total gaming spend, while PCs will contribute $32.9 billion to the total, or nearly 24% of all gaming revenues. “In the span of a decade, mobile gaming will have grown from the smallest segment in 2012 to a 100-billion-dollar industry in 2021,” the company said. “Remarkably, the rise of mobile gaming has not significantly cannibalized revenues from PC or console gaming markets. In the coming years, mobile game revenue growth will continue to outpace the overall games market, growing to $106.4 billion in 2021. By then, smartphone and tablet games combined will generate 59% of revenues in the entire market.”
 
Superdata reports that Fortnite is now the largest free-to-play console game of all time, in both revenue generated and monthly active users with March seeing the title score the  highest conversion rate of any free-to-play PC game in March, generating $223 million across all platforms, 73% from February. Overall, worldwide digital spending in March grew 2%, with consumers spending $8.9 billion globally across all platforms during the month.
 
Speaking of Fortnite, after taking on the release of the game in China, Tencent is now on the cusp ofalso  picking up a chunk of PUBG developer Bluehole. ESPN writes that Tencent is believed to be investing around $470 million into the company, laying claim to a 10% stake in the South Korean developer.
 
Back to E3 news, Geoff Keighley announced that this year’s gathering will see a tribute to the 20th anniversary of Grim Fandango at E3 Coliseum. The event will include a live read from the full original cast, along with live music, Tim Schafer and more. Fans not in attendance can watch on Facebook Live.
 
 
POWER PLAYERS – Twitter’s Rishi Chadha


After unveiling a full lineup of programming at this year’s Newfronts, Twitter continues to bolster its offerings for its legion of gaming and esports fans. Among the announcements are content dedicated to Call of Duty World League, The Game Awards, Gamespot, IEM, and IGN. Cynopsis asked Rishi Chadha, head of gaming content partnerships at Twitter, about the company’s approach to gaming, content and advertisers.
 
Chadha on Twitter’s approach to gaming: Gaming and Twitter go hand-in-hand. The audience is here talking about everything and that’s only been solidified as time goes on. So to drive the narrative, the four key verticals we are working on here at Twitter are: esports; editorial (with folks like IGN and Gamespot); communities, whether it is content creators or esports teams; and lastly publishers and developers. That’s the way we are shaping all of our content deals and how we are framing partnerships now. You may fall in one or many of those buckets, but those are the distinct verticals we are supporting now. Lastly, while the audience may Tweet about games very well, there are products we offer that they haven’t really utilized yet. I think that is the big focus for me now is educating our partners on that front. Of course, there is still a lot of room for education for advertisers and I think we at Twitter have a very unique opportunity to provide that education because we already have existing relationships around traditional content.
 
On content: We are unique in the sense that we don’t show just one type of content on our platform. Our deals allow us to be a little more flexible in terms of what we can support. We want to play to the strengths of all of our partners.
 
On activating through Twitter: Advertisers are still learning that we have this huge audience for gaming. Year-to-date, we have had over 200 million Tweets associated with gaming and there is a huge conversation happening on the platform that I don’t think people are recognizing. The other thing is that looking at other platforms, especially other video platforms, there is more of a “lean back” experience for the user. For us, it is more “lean in” in that people are coming to have more meaningful conversations.
 
On Call of Duty World League: One of the big deals we announced at the Newfront presentation was the partnership with Activision Blizzard for Call of Duty World League where we will be carrying Call of Duty World League Anaheim, the season two playoffs as well as the World Championships in August. We will have all the clips associated with that and will also bring the shoulder programming that they will be streaming on the platform. There is a huge Call of Duty audience on the platform so this deal made a lot of sense because the content lends itself well to the platform and added to the conversation that was already happening.
 
On programming: In addition to that, we announced our partnerships with IGN and Gamespot for E3 as well as San Diego Comic-Con. Same thing here, as there was already a lot of chatter happening around those two big event and IGN and Gamespot are leaders and we wanted to work with them. We also announced our renewal with Intel Extreme Masters, extending the partnership we have had with them. Separate from that is our new Esports All-Access Program , where he are working with a lot of the world’s best teams to help them monetize their content and share their content from their perspective, whether it is tournament clips or gameplay.
 
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ON THIS DAY in 1982: Walt Disney Productions files a lawsuit against Williams Electronics for trademark infringement for Tron by the video game Robotron.
 
Trivia: Which gaming console had the tagline, “Play It Loud”? (Email [email protected] with your answer and be sure to include your name, company and city.)
 
Answer to Our Last Sports Trivia Question: Name the game pictured last week. Answer: Portal. Kudos: Julie Reuther/Sydney; Chris Davies-Virgin/London;  Alexandra Bacharach-Daddi Brand Communications/NY; Mike Burch-Team Epiphany/NYC; Gabrielle Pedro Fredrick- National Geographic/DC’ Joey Olson/Arlington; Mark Phillip-Are You Watching This?!/Austin; Hayne Park-Crunchyroll/San Francisco; Andy Babb-Super League Gaming/Santa Monica
 

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