03/30/23: Misfits’ journey from esports organization to something more

Thursday March 30, 2023

Good morning! It’s Thursday and this is your early morning Esports and gaming brief.

Misfits’ journey from esports organization to something more continued this week with the announcement of Pixel Playground, a Roblox game studio co-founded by two recent additions to Misfits: co-owners and Misfits creative directors Kreekcraft, the world’s largest Roblox creator, and variety content creator Karl Jacobs.

The move is part of the company’s strategy to empower its esports and gaming operations through helping creators develop original intellectual property. Misfits founder and CEO Ben Spoont said the IP-focused approach helps give his organization an edge in the marketplace and provide net-new revenue streams by just letting creators do what they do best.

To learn more about Misfits’ business strategy and how the company helps its creators build things like Pixel Playground, The Streamer Awards and more, check out our Q&A with Spoont later this week on esportsbiz.com.

COMPETITION AND GAMING NEWS

E3’s big return could be in jeopardy, according to a report from IGN, with Sega and Tencent reportedly joining Microsoft, Nintendo, Sony and Ubisoft in backing out of participating in what was once the most-important gaming event of the year. The Entertainment Software Association has yet to address the story or Ubisoft backing out of the event just weeks after publicly announcing its involvement in E3. “There’s no possible way this show can happen,” one source told IGN.

PGL will host the first-ever Counter-Strike 2 major, with the PGL CS2 Major Copenhagen marking the game’s debut at a global championship in 2024. The event will take place March 17-31 of next year, more than nine months after BLAST.tv Paris, the final Counter-Strike: Global Offensive major. CS2 continues to generate fanfare following publisher Valve’s confirmation that the game is near release and ongoing closed beta testing ahead of its Summer 2023 release.

The TEKKEN World Tour has named its nine Master events for the year, with Evo Japan, Combo Breaker and CEO 2023 among the premier competitions for the fighting game’s esports circuit. The main Evo tournament in Las Vegas will be what’s known as a Master+ event, developer Bandai Namco announced, and Evo will be one of three TEKKEN 7 Master tournaments in the U.S. Alongside Japan and the USA, the U.K., India, France, Bolivia and Australia will host Master events.

A 10-minute stream of the upcoming The Legend of Zelda: Tears of the Kingdom took the gaming world by storm on Tuesday, with many already heralding the May 12 release as another watershed moment for the franchise and publisher Nintendo. Tears of the Kingdom is the highly anticipated mainline sequel to the Nintendo Switch’s launch title for the franchise, The Legend of Zelda: Breath of the Wild. The game and console came out in 2017, with critics near-universally praising Breath of the Wild as an exciting step not just for the franchise but in showing just how powerful and rich handheld gaming experiences could be. Six years later, Tears of the Kingdom and Nintendo will hope to shatter expectations once again – though hopes are already sky-high for fans and reviewers alike.

STREAMHATCHET

Best Brand Activations at the Streamer Awards

The Streamer Awards was one of the biggest events this year for both creators and their communities in live streaming. Overall the production of the show was phenomenal, but the activations were just as intriguing.

Since live streaming is still a relatively new industry, it can be difficult trying to partner with an influencer and create memorable marketing campaigns, especially when the offering is outside of the gaming space. However, the activations that we saw during the Streamer Awards stood out compared to other activations we’ve seen in the past.

SPONSORSHIP & ACTIVATION

NRG Esports has partnered with DXRacer as its gaming chair sponsor, with NRG’s Overwatch League franchise, the San Francisco Shock, being part of a new line from the gaming chair company. The partnership will bring Shock branding, such as its memeatic “#winnable” slogan and color palette, to DXRacer hardware, and NRG will also have chairs of its own to highlight the esports org overall.

Esports organization Kansas City Pioneers has partnered with its city’s MLB team to bring a “Gamer Night” and additional activations to the Kansas City Royals’ home, Kauffman Stadium, according to local news organization Startland News. The Pioneers have previously worked with the Royals on similar events, including a partnership in 2022 that brought Halo Championship Series teams to Kauffman for a three-day of bootcamp ahead of a premier tournament hosted in Kansas City.

Monumental Sports and Entertainment has opened the doors of District E, a gaming and entertainment venue in Washington, D.C., supported by Ticketmaster. The 14,000-square-foot facility next to Capital One Arena will play host to esports events as well as teams, including Wizards District Gaming, the NBA 2K League affiliate of the Washington Wizards.

Tournament organizer BLAST and the Fortnite Championship Series have renewed a deal that makes BLAST the producer for some of the biggest esports events for Epic Games’ battle royale title. The Fortnite Championship Series is a global circuit with a $10 million prize pool in 2023 and a global championship scheduled to take place in Copenhagen, Denmark – home of BLAST’s headquarters – later this year. BLAST has worked with the FNCS since 2021 and will produce remote competitions in both North America and Europe throughout the year.

2023 Sports Media Awards

Did you hear the news?

There are so many exciting finalists in the mix for this year’s Sports Media Awards… from Disney, Chipotle, ESPN, CBS Sports, Harlem Globetrotters, New York Jets, UFC, Telemundo Deportes and many more, we have some major fan favorites coming to town! Join us in just a few weeks on April 18th at Edison Ballroom in NYC… this is an event you simply can’t miss!

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YOUGOV LIVING DATA INSIGHTS

Brand engagement with US esports fans

Nearly half of all esports fans in the US say brands should engage with them through online advertising mediums, compared to only three-tenths of all Americans (48% vs 30%). Esports followers are also more than twice as likely to pick podcast adverts as a means of brand engagement (30% vs 12%). TV adverts (39% vs 29%), in-store promotions (32% vs 28%) and billboards (28% vs 17%) also have the favor of esports followers.

TEAMS

Content creator-founded esports org Disguised is adding a VALORANT Game Changers team, owner Jeremy “DisguisedToast” Wang announced. Disguised GC has signed some of the best-known VALORANT creators, with in-game leader Lydia “tupperware” Wilson heading up the squad, which also includes popular streamers Tenzin “TrulyTenzin” Dolkar, Sydney “Sydeon” Parker, Jodi “QuarterJade” Lee and Kyedae “Kyedae” Shymko. The team will compete in open qualifiers for Game Changers beginning April 4 and attempt to show that these top content creators can be among the best players of the game, too.

FaZe Clan has received a deficiency notice from the Nasdaq due to its stock staying below the $1 per share threshold for “30 consecutive business days,” according to a filing with the U.S. Securities and Exchange Commission. FaZe, once valued as high as $24.69 in August of last year, has plummeted since it initially went public, with shares trading for as low as $0.40 at close multiple times during the month of March. In order to avoid being delisted by the Nasdaq, FaZe will need to see its stock close above $1 for at least 10 consecutive business days within the next six months.

Evil Geniuses is the latest esports organization to be hit with layoffs, according to multiple former staff members. Former EG Director of Talent Management John Derment confirmed the news on LinkedIn as well as his departure from the company on Tuesday. “Tough day for a lot of us at Evil Geniuses, myself included, as more roles were impacted by restructurings and layoffs,” he said in a statement. “I’m disappointed that we didn’t get to finish what we set out to build, but I’m grateful for and proud of the great work the team did, particularly during these recent challenging weeks.” Evil Geniuses has not publicly commented on the number of positions affected.

Former Cloud9 VALORANT in-game leader Anthony “vanity” Malaspina has a new home after signing with Shopify Rebellion’s VALORANT Challengers roster. The 24-year-old, who played for Cloud9 from August 2021 to his release in mid-March of this year, takes the place of former Shopify Rebellion in-game leader Will “dazzLe” Loafman. Shopify Rebellion hope vanity can be a spark for the former Luminosity Gaming roster, which went 1-4 for a 10th-place finish out of 12 teams during Stage 1 of VALORANT Challengers North America.

INDUSTRY

Ubisoft’s in-house AI scripting tool, Ghostwriter, has received mixed reactions following a look under the hood by Ubisoft last week. The technology is used by Ubisoft to create drafts of “barks,” or the sounds or phrases used by non-player characters during unscripted interactions, “which gives scriptwriters more time to polish the narrative elsewhere,” the company said. Industries around the world are testing the utility of tools such as ChatGPT, Bard and other artificial intelligence software to help produce content or provide additional support for things such as coding. Most pushback on the technology centers on the unreliability of AI and its tendencies to plagiarize or “hallucinate,” or provide false information or responses outside of its modeling. While AI isn’t reliable enough on its own, Ubisoft is banking on its in-house tool as a proprietary tool that can handle what AI is best positioned for right now: saving time by creating thought-starters or drafts that can then be shaped by a real person.

Australia is taking a hardline approach to in-game gambling simulations, with any game featuring simulated gambling soon getting an adult-only rating under a new government proposal. The R18+ (restricted to 18 or older) rating would apply to any game that simulates casino-style gambling, while titles that use lootbox systems for rewards – including titles like Overwatch and many sports games – will be designated with an M (mature) rating, according to the Australian Broadcasting Corporation. The proposal is the latest move in ongoing global conversations about the impacts lootboxes or pay-to-win rewards can have on players and particularly younger consumers.

The ongoing spat between Microsoft and Sony over Microsoft’s acquisition of Activision-Blizzard hit another turn this week as U.S. Congress members commented on Sony’s alleged monopoly over the gaming market in Japan. The statement, reported by Politico, seems to be a counter-narrative to the one Sony has been pressing elsewhere in the world, particularly in the U.K. and Europe: that Microsoft’s acquisition would give it an insurmountable advantage in the gaming market and edge out competitors like Sony’s PlayStation.

Meanwhile, Microsoft got another big win in its acquisition battle, with the U.K.’s Competition and Markets Authority pivoting to support Microsoft’s argument that using game exclusivity to cut competitors out of the market would harm Microsoft and Xbox rather than help the company. The CMA issued provisional findings in February that claimed Microsoft could take games like Call of Duty off the market for PlayStation in order to create a monopoly that could be harmful to U.K. gamers’ wallets. A month later, Microsoft has cleared one of the final hurdles in its $69 billion acquisition of Activision-Blizzard. The Xbox creator’s success stemmed from tendering negotiations to assure non-exclusivity for Call of Duty and its fact-finding research, which showed going the exclusive route would actively hurt the company’s financials.

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Name the women’s basketball star whose standout 41-point performance against Louisville helped Iowa reach its second-ever Final Four. (Email [email protected] with your answer, and be sure to include your name, company and city).

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After Purdue’s loss during the opening round of the NCAA Tournament, how many No. 1 seeds have lost to No. 16 seeds during March Madness? Answer: Two. Kudos: Creed Heilsko | ImOn Communications, Cedar Rapids, Iowa; Sean Devlin | Netflix, Los Angeles; Michael Goodman | Radio One Atlanta, Atlanta; Travis Wacker | ESPN Chicago/Good Karma Brands, Chicago; Matt Deprey | C-SPAN; Washington, D.C.; Dory Petsrillo | CoxReps, Dallas, Texas; Andy Pittman | Baylor University, Waco, Texas; David Westberg | SAG•AFTRA Federal Credit Union, Burbank, California; Tom Moore | Kalt Productions, Los Angeles; David Hauptman

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