Industry News Weekly – Issue #128

Football Manager trying to data-fy the real world’

Researcher at Sports Interactive, Stephen Davidson, explains some of the magic going on behind the scenes of Football Manager. He shares how his typical day at work looks like, how they try to data-fy the real world and bring real-world happenings to the game as soon as possible. 

You Screwed Up: The Value of Errors in Game Tutorials

Psychology of Games published a blog post on using error management techniques in game tutorials which might be beneficial to players learning the game mechanics, instead of the traditional guided tutorials. Read more here…

The esports game

This week brings two different articles about esports, industry that, according to newzoo, generated around $900M in 2018. and will grow to $1.65B by the end of 2020. The article from Venturebeat focuses on revenue stream opportunities (media rights, sponsorships, merchandise, etc.) and explains that current growth drivers are nowhere near what future holds for esports. sportsbusinessdaily, on the other hand, points out that there is a growing concern about short-term sustainability of the business model: In the two years since traditional sports teams started acquiring esports organizations, faith in the long-term potential of video games has grown stronger. But pessimism about the short- and medium-term prospects of esports teams is also growing, as spending pressures grow faster than revenue. The terms at which some leading teams have raised additional investment capital appear divorced from standard business metrics. According to a recent attempt by Forbes magazine to estimate the value of the top-12 esports organizations, those teams on average trade at values 14 times their annual revenue. To put that into context: That’s more than double the NBA average valuation of 6.5 times annual revenue, according to Forbes, The article points out the possibility that market correct is coming for esports.

How Terry Karavoulias Built His First Video Game

Terry wrote on his side-project experience creating a pizza-based game. You can read it here.

PC games market is heating up

So far, Steam from Valve Corporation has been the undisputed king of digital PC games distribution. However, in the past few months, very interesting developments in the market seem to be bringing possible change to status quo and traditional 70/30 revenue split. In October, gaming chat and messaging platform entered the PC games distribution arena with its own store and just last week, after the announcement, Epic Games launched its own store with 88/12 revenue share. In the meantime, Steam introduced pricing tiers (higher the earnings, lower the revenue share) and now, Discord is bringing news again saying it will change its revenue cut and switch to 90/10 model, the most generous one so far. To support its intentions to grow its store, it just received one more funding round of $150M bringing its value up to $2B. More about the news here and here.

News around the globe

  • More than 100 employees from Blizzard’s customer support office in Ireland accepts contract buyouts and are expected to leave the office by the end of the month. Some reports claim that the buyout has been offered several times in the last few months and that the sum offered has increased to equal one-year salary. More here.
  • My PS4 Life, a new feature from Sony, offers one interesting and probably unplanned feature. My PS4 Life will show a user the total number of users who have acquired the rarest trophy they possess and on they also reveal what percentage of all players got this trophy. So, by doing some simple math, it is revealed that, for example, FIFA 18 has 32.5M players in total, FIFA 19 12.5M, Grad Theft Auto V 52.7M, etc.. Details here.

Notable new releases


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