Commentary

Content publishers, venues vie for dominance of exploding e-sports

The impact of e-sports on the streaming and conventional broadcast media has become evident in e-sports events, while the adoption of e-sports venues to dedicated VR experiences has been evident in the emergence of both genres.

Image courtesy of iStock.

May 10, 2021 by Kevin Williams

Consolidation in the e-sports landscape was inevitable in the face of the explosion of interest in the platform. This includes attempts to control the ownership of the key providers of content, and the places to compete.

February saw the completion by Electronic Arts of the acquisition of U.K. game developer and publisher Codemasters for $1.2 billion, making EA the largest game publisher of racing videogames and entertainment properties, ranging from ownership of the Formula 1 properties, World Rally Championship properties, Project Cars, Dirt and Grid properties on console and PC, as well as the Real Racing mobile game properties.

While many will be familiar with the consumer titles in these series, there is also the use of IP that has seen Sega Amusement International release several amusement titles based on these games, working closely at the time with Codemasters development teams.

Electronic Arts grabs the spotlight

Regarding the greater impact of this momentous acquisition, this development will make EA the world's largest sports-related e-sports game publisher, as observed by Esports News UK, with a calculated 430 million players subscribed to the company's multi-platform subscription service.

The impact of e-sports on the streaming and conventional broadcast media and the EA acquisition will obviously have impacts on the F1 Esports Series, Virtual Grand Prix and FIFA Esports championships.

There are several peripheral e-sports competitions that currently use Codemasters game properties, which will also be up for review as EA charts its new direction for these properties. EA is infamous for several elements added to its competitive titles, such as "Ultimate Team" mode or microtransactions (loot boxes), and questions were raised if these elements would creep their way into existing Codemasters properties.

EA is about to undertake a considerable restructuring of its operations following this latest acquisition, along with other developments. It is expected that a dedicated e-sports operation in support of EA's multi-platform subscription service will be cultivated, along with a possible cross-platform competition element that could be linked to a unique streamed channel.

It is important to understand that EA itself is rumored to be under consideration for acquisition by China-based Tencent, the largest game publisher in the world. Reports started to surface at the beginning of the year that Tencent was looking at a North American expansion, and the acquisition of EA was a strong possibility to achieve this.

The corporations have not confirmed the validity of these reports, but industry watchers are not surprised by the possibility. EA is speculated to generate $1.79 billion per year and Tencent, with already extensive interests in the e-sports arena, could easily see this as a perfect fit. The industry awaits developments with interest.

Motorsport Games steps forward

Continuing the trend in the game market (if not all aspects of the entertainment landscape), there were more mergers and acquisitions. Again, directly reflecting the interest in e-sports, it was reported that Motorsport Games had started the process to acquire Studio397 — the developer and publisher of the popular "rFactor2." The game is one of the most popular realistic racing simulator engines, with a large following of players and deployment in the e-sports community.

Motorsports Games would, in fact, pay Studio397 owners Luminis International a sum of $16 million for all the shares in the developer, whilst retaining control.

Studio397 supplies the simulation platform for e-sports competitions such as the 24 Hours of Le Mans Virtual and the Formula E Race at Home Challenge, formally the AAB Formula E Race at Home Challenge.

Concerning the rFactor 2 racing content, this has been deployed into several commercial sim racing centers, in malls and training venues, over the years.

Will Bally's be next?

The acquisition free-for-all that seems to be growing in e-sports continued to gain pace with the latest news that an unsolicited proposal had been received by Allied Esports Entertainment to be acquired by Bally's Corp. The casino resort and racetrack operator and gaming company placed an offer to buy all equity in the company for the sum of $100 million. This was reported to be under evaluation by the board of directors at AEE — while another acquisition proposal to sell equity to Element Partners is also ongoing. A consolidation of operations in this sector seems to be gaining momentum.

As with the other reports we have been covering from the immersive landscape, e-sports is also seeing its own explosion in new facility development. Recent announcements also included what is called the "best-in-class performance venue" in the world. The facility will comprise a vast theater/stadium arena, comprising 7,000-person seating, supported by broadcast capability, with its own entertainment space (planning to hold 200 events a year) and extensive hotel accommodation.

This is a project that will see a $500 million investment by Overactive Media. To be created in Exhibition Place in Toronto, Canada, the venue is scheduled for opening in 2025. The hope is that this site will place Canada on the map for holding and promoting e-sports events and tournaments, and will also drive the coverage of this sport to new levels internationally.

This is the latest ambitious e-sports arena project reported in recent months, including plans in China, Los Angeles, Las Vegas and London — and sure not to be the last.

VR showcase parade

The adoption of e-sports venues to dedicated VR experiences has been a continuing element in the emergence of both genres. Most recently, VRstudios Sports announced the launch of its "Hoops Madness" basketball tournament sports experience.

Following this, ePLEX, the South East California e-sports venue with its sponsored and purpose-built stage and arena, revealed it will be hosting events which incorporate the VRstudios VR e-sports competition across their two venues.

The need for a strong tournament capability, emulating what has been seen in the bowling community, is a factor that drives much of the new investment in what is generally labeled as e-sports, even if the definition is not exact.

Other VR developers employing a dedicated e-sports component to their releases include Virtuix, celebrating surpassing some 2 million plays on its platform, supporting five dedicated e-sports games.

Another VR manufacturer, VEX Solutions, represented by Shaffer Distribution in the U.S., has also promoted its competition credentials with an e-sports model that is available for its VEX Arena platform.

Other e-sports developers are following suit.

(Editor's note: Extracts from this blog are from recent coverage in The Stinger Report, published by KWP and its director, Kevin Williams, the leading interactive out-of-home entertainment news service covering the immersive frontier and beyond.)

Music & Games

About Kevin Williams

Along with advisory positions with other entrants into the market he is founder and publisher of the Stinger Report, “a-must-read” e-zine for those working or investing in the amusement, attractions and entertainment industry. He is a prolific writer and provides regular news columns for main trade publications. He also travels the globe as a keynote speaker, moderator and panelist at numerous industry conferences and events. Author of “The Out-of-Home Immersive Entertainment Frontier: Expanding Interactive Boundaries in Leisure Facilities,” the only book on this aspect of the market, with the second edition scheduled for a 2023 release.

Connect with Kevin: