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• “Look, esports is not a fad,” Pitaro said to reporters in response to a question at ESPN Media Day last week in Bristol, Conn. “It’s not going anywhere. We believe it is ascending, and in the spirit of us attracting a younger audience, esports has got to be a priority of ours.”

New York Excelsior (L) play the Shanghai Dragons during the inaugural season of Overwatch League at Blizzard Arena on May 4, 2018 in Burbank, Calif. (David McNew/AFP/Getty Images)

In July, Disney signed a deal with Activision Blizzard to broadcast the Overwatch League Grand Finals on its ESPN channels. The first round of the finals aired at 7 p.m. on Friday, July 27, on ESPN — yes, primetime on the main ESPN channel. It was the first time competitive video gaming (or “esports”) aired on ESPN.

The ratings were tiny. Friday night’s first round on ESPN rated a 0.18 (and reached 215,000 households), or 20% lower than a Golden Boy Boxing lightweight bout on ESPN on the previous Friday night, and well below a typical MLS game on ESPN. Saturday night on ESPN2 rated a 0.05.

Nonetheless, ESPN president Jimmy Pitaro says ESPN is doubling down on esports.

“Look, esports is not a fad,” Pitaro said to reporters in response to a question at ESPN Media Day last week in Bristol, Conn. “It’s not going anywhere. We believe it is ascending, and in the spirit of us attracting a younger audience, esports has got to be a priority of ours.”

Indeed, broadcasting the Overwatch finals was not ESPN’s first foray into esports. In 2014, ESPN entered an agreement with esports tournament organizer Riot Games to show the League of Legends World Championship on its ESPN3 streaming network; in 2014 and 2015 ESPN3 showed the International Dota 2 Championships, plus a preview show on ESPN2; and in 2016 and 2017 ESPN2 aired the Street Fighter V World Championship, to name just a few instances.

While esports may still look niche, it has grown rapidly. In 2015, a League of Legends tournament sold out Madison Square Garden. The esports industry is expected to hit $905 million in revenue this year, a 38% increase from 2017’s $655 million, according to market research firm Newzoo.

And according to a Citi research note, total prize money for all esports events held in 2017 topped $100 million for the first time. The 2017 International eSports tournament had a total prize pool of $24.7 million, which Citi points out was twice as big as the total purse for golf’s 2017 Masters.

Pitaro also quibbled with the common definition of esports. “I think it’s helpful to look at esports as just a category within games,” he said. “My 15-year-old son spends a ton of time watching Ninja play Fortnite on Twitch. That’s not esports. People say it’s esports, but that’s not. That is a gaming influencer demonstrating his performance within a specific game. All of that is interesting to us. We’re not looking solely through the lens of esports. We’re looking through the games lens as an opportunity for us to do something that is relevant to a sports audience on ESPN.”

Source: https://ca.sports.yahoo.com/news/espn-says-esports-not-fad-124537864.html

• There’s more than $24 million waiting to be won in a tournament that holds the largest prize pool of any eSports championship — and it’s on Canadian soil for the first time.
• “This is kind of like the Super Bowl,” said Peter Anders, referring to The International Dota 2 Championships tournament that kicks off at Rogers Arena on Wednesday.

In this July 27, 2018 photo, fans fill the arena as the stage is set for the Overwatch League Grand Finals’ first night of competition, at the Barclays Center in the Brooklyn borough of New York. Terrin Waack / AP

There’s more than $24 million waiting to be won in a tournament that holds the largest prize pool of any eSports championship — and it’s on Canadian soil for the first time.

“This is kind of like the Super Bowl,” said Peter Anders, referring to The International Dota 2 Championships tournament that kicks off at Rogers Arena on Wednesday.

“You get these absolute diehard fans that are running around with their countries’ flag, or have the T-shirts of the different players and scream for them when the players walk on the stage,” said Anders, who belongs to the UBC eSports Association.

The game Dota 2 is a mixture of chess and capture the flag, where teams of five are pitted against each other to defend their base and destroy that of their opposition. It’s a game that requires high strategy and foresight, explained Anders, making for an ever-increasing high-stakes championship, and an enthusiasm from the crowd that is comparable to that of any other major sporting event.

With 18 teams at play, the tournament goes through a round robin before entering the double elimination stage. Each game usually lasts between 15 minutes to more than an hour.

Tourism Vancouver, which hopes to pursue more eSports tournaments in the future, said the estimated economic impact of this event will be more than $7.8 million in direct visitor spending.

Technical crew for The International Dota 2 Championship set up the show at Rogers Arena in Vancouver,

BC., August 14, 2018. Nick Procaylo / PNG

While Anders and others from UBC’s eSports club will be attending as spectators, they are among the best collegiate teams in North America, winning two consecutive titles in a different tournament.

Vivian Chung, also part of the UBC team, has attended the event for the past two years in Seattle, and was excited to see it come to Vancouver.

“In my first experience, I remember thinking it’s hard to imagine that something that you just play on the computer has such an amazing large-scale event,” Chung said.

While some of the best international players are from China and Europe, Canada has a handful of names on that list as well.

“There’s only about three to five players that are top competitive (Canadian) players, but some of the most popular players are Canadian actually,” Chung said.

Team “Fnatic” for example not only features famed Canadian player Jacky Mao, but is also coached by Kurtis Ling, a former UBC student who won $6.6 million in the 2016 championships.

“Fnatic is my favourite team,” said Anders. “The fact that their coach went to my school makes me even more passionate about the team.”

he historic decision in July by the game developer, Valve Corporation, to move the tournament from Seattle to Vancouver for this year was based on the fact that Vancouver is an up and coming powerhouse in the industry.

Earlier this month, it was also announced that Canada’s first eSports stadium would be built in Richmond, and is scheduled to open in 2019.

“It’s a big deal to have this come to Vancouver,” said Dal Yong Jin, a professor at Simon Fraser University with an expertise in eSports. “The video game industry is getting bigger than the film industry in terms of both the production and consumption.”

Jin also pointed to the fact that organizers of the 2024 Olympics in Paris are in talks to include eSports in the games. The 2018 Asian Games is Indonesia happening this weekend will also feature eSports for the first time, as a demonstrated sport.

“Vancouver and Canada as a whole should prepare for it coming into the Olympic field,” Jin said. “In four years it will be considered a regular game, and we cannot ignore that.”

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Source: https://vancouversun.com/technology/gaming/thousands-of-worldwide-gamers-flock-to-vancouver-for-massive-esports-tournament

• According to Forbes, the total income of the eSports industry grew from $493 million in 2016 to $655 million in 2017 and is expected to increase to over $900 million in 2018
• Research conducted by SuperData and PayPal meanwhile reports that the total eSports audience grew by roughly 2 to 3 million people in the same period of time.

The last few years have seen eSports develop rapidly. According to Forbes, the total income of the eSports industry grew from $493 million in 2016 to $655 million in 2017 and is expected to increase to over $900 million in 2018. Research conducted by SuperData and PayPal meanwhile reports that the total eSports audience grew by roughly 2 to 3 million people in the same period of time. Companies such as CocaCola, Microsoft, Amazon, Tencent and many others are increasingly investing in eSports, in recognition of the industry’s huge growth potential, as well its unique appeal which has helped it grow an audience of millions. There may even come a day when esports competitions are held in the same regard as those of traditional sports.

The rise in popularity and market size of eSports has also seen a growing number of online gaming platforms emerge. These platforms allow players to become a part of the global gaming community, enabling them to share their experience, play with others, and even earn prizes. However, there are all too often drawbacks to these services, especially where earning from gaming is concerned, be it difficulty withdrawing funds, lack of transparency in the distribution of prize funds, and fraud on the part of third-party services. These problems, as well as many others, may be solved through the implementation of blockchain technology – a technology which has found applications in a variety of other areas and is now poised to bring its benefits to esports gaming.

Blockchain is a huge, constantly supplemented, decentralized database with shared access, which utilizes  a chain of blocks to store transaction data. Data is complementary across multiple blocks, meaning that data cannot be removed or replaced in a single location without altering it across every block. In addition to the lack of a single centralized storage, blockchain technology reduces the potential for hacking or fraudulent activity and is immunized against the threat of a single compromised unit compromising the entire database system.

Despite the potential advantages and benefits offered by blockchain technology, few online platforms have yet to take advantage of implementing blockchain technology. However, one such service currently under development, Cybercube, aims to take advantage of the benefits posed by blockchain technology by using it to build their service from the ground up. Speaking to the Cybercube team, we were able to find out just how blockchain technology can be used to solve the most pressing problems of the eSports industry.

1. Unprotected rights of eSports participants

When creating tournaments, organizers often assign an entrance fee, helping to form the prize fund which is ultimately distributed amongst the tournament’s winner(s). However, outside of major, well-known tournaments, which the vast majority of players are unable to take part in, the distribution of prize pools is largely unregulated. Players often don’t see the promised winnings or are not paid at all. In addition, there are cases when the player plays worse than the rest of the team and, contrary to the agreement, the team deprives him of any compensation.

This particular issue may be solved by blockchain technology via the use of smart contracts – a computer algorithm which prescribes all the conditions for the distribution of prizes. Smart contracts ensure the transparency and execution of the terms of transactions, by automatically distributing prizes per pre-prescribed conditions, which thanks to the blockchain system, are available to all participants, and cannot be changed or altered by a single user or party. The contract code sets out key performance indicators for each player. After the completion of a game or tournament, these figures are automatically compared to the real indicators and, as a result of this comparison, the distribution of the winings occurs.If the indicators lag behind, the reward is automatically cut; if the indicators don’t lag, then the remuneration is calculated in full. Thus, the agreement in a smart contract can not be violated.

1. Refusal of intermediaries in the payment of winnings

Whilst many players are keen to take part in solo tournaments, they may often become victims of fraud due to third parties, especially if they lack management. This is due to third parties withholding, refusing, or otherwise delaying the payment of winnings to players.

Smart contracts again help to mitigate these particular issues by allowing players to safely make contributions, collect winnings, and compete for prize funds without the need for third parties. Since smart contracts ensure that the distribution of winnings are prescribed in advance, players can be assured that they will be executed properly and quickly at the end of a tournament.

1. Fraudulent behaviour within the skins market

Many players utilise the sale of valuable in-game items such as skins in order to earn money from gaming outside of tournaments. Today there exists a huge number of intermediaries and services which allow players to trade skins, though they nearly all have in common incredibly high commission rates, with some charging up to 20% per transaction. There also exist a huge number of fraudulent services, many of which can be hard for the average user to distinguish from legitimate ones.

Blockchain technology allows for the implementation of real-time blockchain auctions, which utilise the advantages of decentralised information storage to mitigate the potential for fraud, whilst also doing away with the need for third party services and hence needlessly high commission rates.

1. Withdrawal of funds earned in-game

Most online games now offer rewards for players or some form of monetised in-game items, be it skins, weapons, clothing, or access to particular maps or game-modes. The cost of these items can vary hugely, from a few cents to tens of thousands of dollars, with the most-expensive skin sold to date, specifically Dragon Lore for CS:GO, selling for $61,000 dollars. Whilst the sale and purchase of skins is supported by established and reputable services such as Steam, the inability of users to withdraw funds from their Steam wallets means they are forced to seek out third party services in order to re-allocate funds to external accounts. These third party services, as is often the case, can charge high commissions, with players sometimes losing up to 50% of the original value of their funds by the time they have been re-allocated.

Blockchain meanwhile operates chiefly using cryptocurrencies, allowing for unprecedented access to and freedom in moving money around between a user’s accounts and wallets, without incurring commission or transaction fees, as well as being quick and secure to use. Cybcercube itself aims to utilise an internal currency which can be converted directly to cryptocurrencies such as Bitcoin or Ethereum to further increase the ease with which players and users can re-allocate their money.

1. Donation chargebacks

Some gamers and prominent eSports figures choose to create and host streams, live broadcasts featuring gameplay and viewer interaction. These streams can attract thousands of concurrent viewers, and several major streaming services offer streamers the opportunity to build up consistent audiences and income streams through allowing viewers to subscribe to their particular streams. Viewers also often choose to donate to their favourite streamers of their own volition in order to support their favourite streamers. However, it is not uncommon for malicious viewers to donate to a streamer in order to request a chargeback – a request for the denial of a transaction and the return of funds to the original cardholder. Chargebacks can be used to harass streamers, particularly large chargebacks, since streamers are required to pay a commission on the return of chargeback donations.

Cybercube’s use of blockchain technology and cryptocurrencies does away with this issue. Since cryptocurrency transactions are decentralised and anonymous, the origin of transactions cannot necessarily be identified, removing the ability to conduct chargebacks, preventing chargebacks being enacted out of spite since those wishing to utilise them so cannot be guaranteed to have their fake donations returned to them.

Conclusion

Blockchain technology has the potential to radically transform the eSports industry. It offers a number of practical solutions and potential improvements to long-standing issues, offering more convenient and transparent alternatives to existing services. It isn’t surprising that the number of online gaming platforms that implement blockchain solutions in their work is constantly growing. The more gaming platforms adopt such a system of work, the sooner the moment of transition of the industry to cryptocurrency begins. It’s only a matter of time.

Source: https://www.newsbtc.com/2018/08/08/professional-esports-challenges-and-solutions/

• Mercedes has announced inaugural Formula 1 eSports champion Brendon Leigh as a driver for its brand-new virtual racing team.
• Leigh, who defeated Fabrizio Donoso Delgado and Sven Zurner in a controversial final last year, will defend his drivers’ championship with Mercedes

“The pressure is somewhat enormous to defend this championship,” Leigh told Autosport earlier this year.

“I’m going to walk into the finals with the biggest target on my back that I’ve ever had in my life. The intensity has risen tenfold.”

The 19-year-old will compete alongside 2017 McLaren World’s Fastest Gamer finalist Harry Jacks, multiple-Polish sim racing champion Patryk Krutyi and Dani Bereznay, who was selected by the team in July’s Pro Draft.

The team will be based at Brackley alongside its real-life F1 team.

It will use a “purpose-built eSports training centre, which will provide the team’s gamers with state-of-the-art facilities and equipment to develop their skills,” according to Mercedes a statement.

The eSports team will be based in the same building as Mercedes’ ‘F1 Driver in Loop Simulator’.

“The eSports programme will benefit from transferable elements pertinent to optimising car set-up and honing racecraft,” the statement continued.

“The programme also focuses on human performance and will give the eSports team members access to the on-site Performance Centre covering the core areas of nutrition, physical conditioning and wellbeing that support the gamers in reaching their full potential.”

The quartet will start competing in October in the next stage of the F1 2018 eSports series.

F1 eSports 2018 line-up so far

Mercedes AMG Petronas Motorsport
Brendon Leigh, Harry Jacks, Patryk Krutyi, Daniel Bereznay

Red Bull Racing eSports
Joni Tormala, Graham Carroll

Renault Sport Team Vitality
Sven Zurner, Kimmy Larsson, James Doherty

Haas F1
Martin Stefanko, Michal Smidl Hype Energy

eForce India
Fabrizio Donoso Delgado, Mads Sorensen, Marcel Kiefer

McLaren Shadow
Olli Pahkala

Toro Rosso
Cem Bolukbasi, Patrick Holzmann Sauber Salih Saltunc, Allert van der Wal, Sonuc Saltunc

Williams eSports
Tino Naukkarinen

Source: https://www.autosport.com/gaming/news/137898/mercedes-launches-official-f1-esports-squad

• Esports in British Columbia has just taken a massive step forward.
• Local group Myesports Ventures Ltd. has announced the building of “The Gaming Stadium,” a one-of-a-kind (and the first of its kind!) eSports stadium.
• Arena is currently being built in Richmond with plans to open for public use in 2019

Vincent Plana

According to a press release, the Gaming Stadium is being built with a singular goal in mind: “To provide a community-driven location that is open for players of all ages and skill levels to watch and participate year-round.”

Dan Cybak, CEO of Myesports, shares that “today is an exciting day for me and the entire team at The Gaming Stadium. Our team is made up of people who have been organizing and participating in tournaments in this city for years.”

Cybak explains that they have built “a group that covers all aspects of eSports” in a pursuit of a facility that is “truly built by gamers, for gamers.”

In addition to hosting high-end players and hosting major events, their goals also include cultivating the future of gaming, aka the younger generation.

Matthew Low, COO of the company, has revealed that they will “be holding leagues for all skill levels while also offering to coach those who want to take their skills to the next level.”

Their plans, according to Low, are “to be the Little League, Junior League, and Major League home of all things eSports in Vancouver.”

The Gaming Stadium will be built with a large “main stage” that can seat up to 250 spectators.

The facility will also include a gaming area with more than 40 set-ups, a casual “drop-in” area, a full broadcast facility, as well as food and beverage offerings.

More announcements regarding the stadium will be made leading up to the launch. More information can be found on their website.

Source: http://dailyhive.com/montreal/metro-vancouver-the-gaming-stadium-esports-2018

NEW YORK — The Overwatch League has planted its flag atop the esports mountain. But just like its twitchy-thumbed superstars, the premier circuit can’t afford to sit still.

Not as long as Fortnite commands the rest of the gaming universe.

The Fortnite phenomenon has put Overwatch in a strange position. The Overwatch League’s inaugural season has been a barrier-breaking achievement, but Blizzard Entertainment’s 6-on-6 first-person shooter isn’t nearly the world’s most popular video game. That would be Fortnite, a battle royale that has transcended gaming and smashed into the mainstream unlike any title in years. Overwatch executives say they aren’t nearly panicked because of one grand gamble: their deep pockets and impressive infrastructure can keep Fortnite from making a successful charge for the crown.

THE LEAGUE

A top-selling game doesn’t necessarily make an elite esport — the latter requires a professional circuit, loyal fans and a product that’s just as enjoyable to watch as to play.

The Overwatch League has set the standard for esports in its first season. Ten million fans watched its opening weekend, and 100-150 thousand tuned in for every second of the regular season. The league’s two-night championship sold out Brooklyn’s Barclays Center, and the opening night aired live on ESPN, the network’s first live broadcast of esports in prime time. The league has a fierce and sizable stable of fans, big-name investors like New England Patriots owner Robert Kraft and the momentum of a monumental first season.

FORMIDABLE FORTNITE

Yet video gamers are clearly more ravenous for Fortnite. The breakout title from Epic Games has 125 million global players, compared to 40 million for Overwatch. Perhaps more jarring, Google searches for “Fortnite” outpaced “Overwatch” 14-to-1 in the week leading up to the Overwatch League Grand Finals.

Fortnite’s crossover appeal is unrivaled, a fact most recently on display when France’s Antoine Griezmann celebrated a goal in the World Cup Final with a dance move popularized by the game .

How could Overwatch not be terrified of a competitor with that kind of organic reach?

Simple: it doesn’t see Fortnite as competition — yet.

“Fortnite right now is 99 per cent a game and not an esport,” said Ari Segal, president of Immortals Gaming, which runs Overwatch’s Los Angeles Valiant. “But I think obviously there’s a path for it to become an esport.”

The distinction is key. Structured, competitive Fortnite events are still in their infancy, and Epic has a ways to go to match the professional experience provided to Overwatch League fans. Epic began that effort by promising in May to offer $100 million in Fortnite esports prize pools — an enormous sum for the industry.

Yet early returns have been shaky, like when the Fortnite Summer Skirmish Series was cancelled mid-play due to technical issues. The tournament has also been hindered by conservative game play, with players waiting until the last possible moment to engage. In a statement, Epic said that it “under delivered” in what was supposed to be its first marquee esports event while laying out plans to improve the viewing experience.

Epic did not respond to a request for comment from The Associated Press.

“It takes a lot more than a press release to build an esport,” Overwatch League Commissioner Nate Nanzer said. “I think I can speak as well as most that there’s a ton of investment and planning and infrastructure that you need to build in order to do professional esports at a high quality bar.”

THE GRAND FINALS

Overwatch’s Grand Finals have been a showcase for that. All it takes is one look at the 165-foot-wide, 36-foot-tall LED screen behind the Barclays Center stage — players and fans alike have been in awe of the massive display this weekend.

But it runs deeper than flashy tech. The league’s broadcasts on Twitch have been nearly flawless technologically all season. Its teams have impressive support staffs including chefs, physical trainers and PR managers. Even the in-event entertainment is first-rate: DJ Khaled will perform at Saturday’s championship finale.

Which isn’t to say Overnight is a finished product. There’s work to be done packaging its events, especially for casual fans. Blizzard plans to experiment with its broadcast structure to better serve diehards and newbies alike. Those adjustments began with more explanatory segments on the ESPN show for uninitiated viewers, and the league will use feedback from that to shape coverage for next season.

“What I saw on Twitter was fun,” said Pete Vlastelica, President and CEO of Activision Blizzard Esports Leagues. “I liked seeing the healthy debate between the old-school, old-guard sports audience who wondered what they were watching and then a lot of young sports fans who were very excited by what they were seeing.”

Even as it experiments, everything about the league has the look and feel of a top-notch pro sports organization, and that’s been a matter of investment and expertise for Blizzard and its team owners — a group that includes Kraft, New York Mets COO Jeff Wilpon and Los Angeles Rams owner Stan Kroenke.

Esports organizations, like Segal’s Immortals, are keeping a close eye on Fortnite.

“Do you have the access to capital and the human resource capacity and the organizational bandwidth to be nimble and flexible to evaluate whatever that next thing is?” Segal asked. “With respect to Fortnite, it’s an ongoing evaluation.”

BUILT TO LAST

At some point, it seems likely that Fortnite — or perhaps another battle royale, like PlayerUnknown’s Battleground — will get there. When it does, Overwatch thinks it’s poised to survive.

For starters, Overwatch the game was built to endure. Blizzard Entertainment specializes in titles with staying power. Its Warcraft franchise launched in 1994 and has remained a hit. Same with series like Diablo (1996) and StarCraft (1998).

That’s the key to Overwatch’s ongoing relevance, according to Jurre Pannekeet, head of esports at market research firm Newzoo. It’s a difficult thing to perpetually innovate and improve a game, but Blizzard might do it better than anyone.

“They have really long-standing franchise with big fans that have played these games for several years,” Pannekeet said.

It’s also possible — some think likely — that the esports landscape can accommodate more than one superleague.

“Certainly, Fortnite is stealing share from everybody, to some degree,” Segal said. “But it’s not just zero-sum. The pie is growing.”

The hope is that players hooked into gaming by the Fortnite experience might shop around for other titles once they’re exposed to esports.

“I think we welcome more investment in the space,” Nanzer said. “And I think esports as an industry is definitely still in the ‘rising tides lift all boats’ phase of our growth.”

Source: https://business.financialpost.com/pmn/business-pmn/fending-off-fortnite-can-overwatch-stay-atop-esports-world