Research Summary
The report provides a comprehensive analysis of the gaming industry, covering key topics such as Nintendo’s new community tournament guidelines, marketing strategies for gamers, Netflix’s gaming strategy, a case study on the streamer ‘shroud’, and the acquisition of FaZe Clan. It also includes insights on the future of esports, the role of creators in game development, and the impact of user-generated content and platformization.
Key Takeaways
Nintendo’s Community Tournament Guidelines
- Strict Regulations: Nintendo has announced stringent guidelines for community-run tournaments, including a limit on cash prizes and participant numbers, and a strict policy against unlicensed hardware. The enforcement of these policies remains uncertain.
- Community Criticism: The gaming community has criticized Nintendo’s hardware policy, arguing that it restricts gamers who require certain modifications or new controllers for better accessibility.
Marketing to Gamers
- Behavioral Differences: A survey revealed that half of the gamers behave differently in-game than in real life, raising questions about the effectiveness of demographic targeting and segmentation.
- Data Limitations: Current tools are not robust enough to segment gamers based on their in-game behaviors, and game publishers are not openly sharing this data.
Netflix’s Gaming Strategy
- IP Leverage: Netflix plans to outcompete other mobile games by leveraging its intellectual property and recommendation engine to convert existing subscribers into gamers.
- Studio Selection: Netflix has opted to acquire certain studios and partner with others, and is open to receiving pitches from studios on how they would use Netflix’s IP.
Streamer Case Study: Shroud
- Streaming Hours: In September, shroud streamed 283 hours, significantly more than a standard work schedule.
- Viewer Engagement: Shroud brought in 2.2M Unique Registered Viewers and 783k Returning Registered viewers, with 5.5% actively engaging in the chat.
FaZe Clan Acquisition
- Financial Decline: FaZe Clan was acquired for $17M, a significant decrease from its $725M SPAC. At its peak, it traded at a $1.2B market cap on the NASDAQ exchange.
- Esports Industry Challenges: The esports industry is facing an identity and sustainability crisis, struggling to convert views into dollars despite growing viewership numbers.
Actionable Insights
- Investigate the Potential of User-Generated Content: The rise of user-generated content and platformization could provide new opportunities for game development and marketing. Creators are increasingly building their own games and experiences, leveraging their fan base for distribution.
- Explore In-Game Behavior for Marketing: The behavioral differences between gamers’ in-game and real-life personas suggest a need for more sophisticated segmentation and targeting strategies. There may be potential in developing tools that can segment gamers based on their in-game behaviors.
- Consider the Impact of Strict Regulations: Nintendo’s stringent community tournament guidelines highlight the potential challenges of enforcing strict regulations in the gaming community. Companies should consider the potential backlash and enforcement difficulties when implementing similar policies.
