Research Summary
The report provides a comprehensive overview of the latest developments in the gaming industry. It covers key topics such as the finalization of the Microsoft-Activision Blizzard deal, PUBG Mobile’s $100 million creator fund, the testing of Netflix’s cloud gaming service in the US, changes to Fortnite’s creator payout policy, and the projected growth of the SEA-6 gaming market.
Key Takeaways
Microsoft’s Acquisition of Activision Blizzard
- Deal Completion: After 633 days, Microsoft’s $69 billion purchase of Activision Blizzard has been finalized. The deal includes Microsoft acquiring IPs like Call of Duty, Crash Bandicoot, Diablo, and more.
- Ubisoft’s Role: Ubisoft has taken control of cloud gaming rights for Activision Blizzard for the next 15 years, which was a key factor in the deal’s approval.
- Leadership Changes: Activision Blizzard’s CEO, Bobby Kotick, is set to step down at the end of 2023.
PUBG Mobile’s Creator Fund
- Investment Plan: PUBG Mobile plans to distribute $100 million over three years to incentivize game creation and support. This is part of their strategy to stimulate user-generated content.
- Comparison with Epic Games: Unlike Epic Games’ direct revenue-share approach, PUBG Mobile is focusing on indirect economic support, which may be more attractive to some creators.
Netflix’s Cloud Gaming Service
- Testing Phase: Netflix has begun testing its cloud gaming service in the US, allowing subscribers to play games on smart TVs and TV-connected devices.
- Subscription Model: The service is not intended to replace consoles but to add value to existing Netflix subscriptions. This bundling strategy could be a game-changer given Netflix’s large consumer-subscriber base.
Fortnite’s Creator Payout Policy
- Policy Changes: Fortnite is altering its creator payout economics to incentivize creators to stimulate player spending. The new policy will reward creators when players buy or spend V-Bucks within a certain timeframe of engaging with the creator’s experience.
- UGC Trend: This move aligns with the growing trend towards user-generated content and the creator economy.
SEA-6 Gaming Market Growth
- Market Size: The SEA-6 gaming market, which includes Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam, is projected to grow at a 5.4% CAGR, reaching $7.2 billion by 2027.
- Mobile Gaming Dominance: Mobile gaming accounts for two-thirds of the region’s revenue and is expected to climb to 70% in 2027.
- Esports Influence: Esports is a key driver for gaming in this region, with teams in Thailand and Malaysia earning the most esports medals.
Actionable Insights
- Investigate the Potential of Cloud Gaming: With Netflix testing its cloud gaming service, there’s a clear indication of the potential growth in this sector. Companies should explore opportunities in cloud gaming, considering the increasing demand for device-agnostic gaming experiences.
- Consider the Impact of User-Generated Content: The changes in Fortnite’s creator payout policy and PUBG Mobile’s creator fund highlight the growing importance of user-generated content in the gaming industry. Businesses should consider how they can leverage this trend to engage users and stimulate spending.
- Explore Opportunities in the SEA-6 Gaming Market: The projected growth of the SEA-6 gaming market suggests significant opportunities in this region. Companies should consider strategies to tap into this market, particularly in mobile gaming and esports.
