MMO Money: Arena of Valor Finds Success At Last

Here we are at the second to the last Tuesday of the year, which means this is our last look at the news from the business side of the games industry. Next week we’ll have an article that looks back at the biggest stories of the year so keep an eye out for that. For now, though we have Blizzard to discuss along with the Zenimax vs Oculus lawsuit, esports, and Arena of Valor’s success on the Nintendo Switch.

HGC Western Clash

 

Blizzard Kills Heroes of the Storm Esports

There have been a lot of unpopular things going on with Blizzard recently that are leaving lifelong fans wondering what has happened to the beloved brand. Most recently Blizzard took a chainsaw to Heroes of the Storm. They put an end to the competitive esports scene saying that the Heroes Global Championship and Heroes of the Dorm won’t be returning in 2019. This very sudden change has put a lot of people out of jobs. Stars who left college to pursue esports, team managers wondering what to do next, and many others from all aspects of the esports scene.

At the same time, Blizzard says that they will continue developing the game, though the cadence of releases will change. In other words, they will be releasing content less often. Blizzard also moved some developers, though they didn’t say how many, from the Heroes of the Storm development team to other teams. While they aren’t giving up on Heroes of the Storm completely it certainly sounds like this is the beginning of the end for the game, which would be just another unpopular move on Blizzard’s part. That really breaks all of this to one final question….is Blizzard working on a Battle Royale game? Only time will tell, but based on the decisions they’ve been making recently it wouldn’t be too much of a stretch.

Source: Official Site

arena of valor switch

 

Arena of Valor Downloaded 1 Million Times on Switch

In China, Tencent has seen massive success with Honour of Kings. It’s been at the top of the mobile charts every month in terms of revenue for the entire year. However, when they released it as Arena of Valor in the West it wasn’t a massive success at all. At least that is until it was released on the Nintendo Switch. Since Arena of Valor launched on the Switch at the end of September it has been downloaded 1 million times and the United States was the biggest market. While Arena of Valor hasn’t been performing as well in the West as it has in China it hasn’t all been bad news for the game. In September the MOBA reached the $15 million milestone in player spending between the App Store and Google Play. At that time the game also experienced 49% growth month over month in comparison to August. So even almost a year after launching it was still growing in a big way.

Arena of Valor is Tencent’s first console game, but with results like this, it almost certainly won’t be the last. This is especially true as the company has to try to claw back from the really quite awful year they’ve had.

Source: Games Industry

 

Intel and ESL Announce $100m Esports Investment

Blizzard might be taking a step back from the Heroes of the Storm esports scene but in other corners of the esports world, things are looking good. Intel and ESL have announced that they will be continuing their partnership to 2021 and more than $100 million in investments in the industry will be made. The partnership between the two companies is 18 years old, making it the longest standing partnership in all of esports. The deal will help to drive growth in new regions which includes a focus on hosting and large-scale events within some Asia-Pacific countries.

“ESL and Intel have worked side by side on growing esports for nearly two decades,” said Ralf Reichert, ESL founder and co-CEO. “We built a number of cornerstones of this industry together and helped many gamers in becoming legends of the sport. The long-term extended partnership with Intel opens even more opportunities for us to take our efforts to a whole different level on a global scale.”

The Vice President and General Manager of VR, Gaming, and Esports at Intel had this to say, “This joint investment with ESL into the ecosystem means that the esports growth and innovation that we’ve led over the past two decades will continue. This partnership will advance the rapid evolution of esports, and Intel is committed to ushering in this new era with technology solutions that place the gaming community and fans first.”

If you’re wondering how the esports industry is doing, on the whole, we’ll have more on esports in the coming weeks as we take a look back at 2018 from a business point of view. So be sure to keep an eye out for that.

Source: Games Industry

 

Zenimax and Oculus Settle Their VR Lawsuit

It might feel like Zenimax and Oculus have been involved in a lawsuit over the Oculus VR system forever. It all started in 2014, which certainly feels like an eternity ago. In 2017, Zenimax was awarded $500 million by a judge, but that was later cut in half upon appeal. That then led to even more appeals, though those have now been dropped. The two companies reached a settlement outside of court through the Fifth Circuit Court of Appeals mediation program. The terms of the settlement weren’t disclosed and they likely never will be.

Both sides seem to be quite pleased with the outcome, and Zenimax Chairman and CEO Robert Altman said, “We are pleased that a settlement has been reached and are fully satisfied by the outcome. While we dislike litigation, we will always vigorously defend against any infringement or misappropriation of our intellectual property by third parties.”

A representative for Facebook, who own Oculus said, “We’re pleased to put this behind us and continue building the future of VR.”

It’s nice to see this story finally put to rest.

Source: Games Industry

The post MMO Money: Arena of Valor Finds Success At Last appeared first on MMOGames.com.

Chinese Regulations Result in Tencent’s Market Value Dropping By $20 billion

There’s more bad news for the gaming industry that expands well beyond the borders it was intended for and has resulted in Tencent’s market value dropping by $20 billion.

Regulators in China have recently been putting a lot of strain on the gaming industry and they just hit the industry with a massive blow. China is cracking down on online games specifically in an attempt to combat screen-related myopia, that’s nearsightedness. There isn’t any scientific proof that online gaming has and an impact on myopia, however. In addition to this move to limit games, they’re also going restrict the amount of time young people spend playing games and they’re exploring an age-appropriate restriction system as well.

League of Legends

As you would expect this news didn’t go over well in the stock markets. This is where Tencent, a company that has been spreading its wealth far and wide to international game companies. These deals with them have also allowed Tencent to publish many of the games in China. But, since China will be restricting games…it looks like those deals aren’t going so well for Tencent anymore. The $20 billion loss is actually only a drop of 5%. In all though, Tencent has lost more than $160 billion in market value since January because of all of the recent regulation changes in China.

Tencent mobile financials - MMOGames.com - Your source for MMOs & MMORPGs

While the BBC speculates that Tencent will continue to invest in markets outside of China it is equally possible that they won’t given the fact that they won’t be able to release the games they invest in for Chinese audiences. This lack of investment could very well have a snowball effect that has a massive impact on the gaming industry as a whole. We may see Tencent and other Chinese gaming companies shifting gears to focus more on single player, offline games.

 

Source: Reuters, BBC

The post Chinese Regulations Result in Tencent’s Market Value Dropping By $20 billion appeared first on MMOGames.com.

MMO Money: Huge Disappointment for Tencent

Seed has raised more than 8 million dollars for development of the unique MMO, while Niantic has acquired another game studio. Fortnite is still making more money than anyone could ever count, but a massive mobile game from China has turned into a huge disappointment for Tencent. Plus, we have more lootbox news, which includes some very interesting statistics that show most players don’t care about them at all.

 

Klang Raises $8.75 million for space MMO Seed

Space colony MMO Seed has an extra $8.75 million to work with for the development of the game thanks to recent fundraising efforts. This brings the total the studio has raised for the game up to $13.95 million, thanks to a previous funding round in March. Speaking about the latest funding Klang’s CEO Mundi Vondi said: “We’re truly humbled to have secured the Series A for the development of Seed, a project that we believe will play an integral role in the next generation of social simulations. We are honored to share our vision with Northzone, and are more excited than ever to tackle this very ambitious project.”

 

Fornite Earned $1 Billion From In-Game Purchases Alone

Yes, Fortnite has become one those topics we’re covering every week and starting next week we’re going to lump all the Fortnite news into one section. This week thankfully we only have one thing to talk about, and that is that Fortnite has earned 1 billion dollars just from in-game purchases. Monthly revenue for the game has done nothing but climb since October as shown by the graph above. In May viewers watched almost 700 million hours of battle royale content, 83% of that was Fortnite. More on Fortnite coming soon…

 

“Coming Soon” No Longer Allowed in German Preorders

star citizen like eve online

A recent court ruling in Germany may have a ripple effect around the world as it was declared that using vague terms like “coming soon” in preorders isn’t allowed. Part of the ruling said: “in the view of the judges, this information was too vague to comply with the statutory information obligation of the providers. According to this, potential customers should know before the end of the ordering process how long the delivery time will be at the maximum.” Exactly what this means for the future of gaming isn’t clear yet but it could possibly put an end to vague release dates, Kickstarter claims, and much more.

 

Video Game Kickstarters Equal Almost $10 million So Far in 2018

ICO Partners have put out their regular report on Kickstarter campaigns for video games which shows that video game Kickstarters have brought in $9.82 million so far this year. That’s up just $400,000 from the same period last year. This was in fact done with fewer Kickstarter campaigns than in previous years, just 723, the lowest first half of the year since 2012. Kickstarter is generally seeing a bit of a slowdown when it comes to video games, as people are learning how difficult it is to put a successful campaign together.

 

Niantic Acquires Seismic Games

Just last week we were talking about Pokemon Go creators Niantic acquiring a company and now here we are with another, their fourth acquisition in recent months. This time they have acquired Seismic Games, the makers of Marvel Strikeforce and VR experience Blade Runner: Revelations. John Hanke, the CEO said this in a statement: “We recently gave a peek under the hood of the Niantic Real World Platform, and we see the addition of Seismic Games as a significant accelerant for realising our vision of an operating system that bridges the digital and the physical worlds. At Niantic, we’re committed to our mission of motivating people to exercise, be social, and discover new places. We’re confident that Seismic Games will help us deliver on that mission – faster, and better.” All of these acquisitions are putting Niantic in position for a lot of awesome in the future which makes you wonder, what are they coming up with next?

 

Mobile Game Spending Up in the First Half of 2018

Mobile game revenue is up 19% in the first half of 2018 in the App Store and Google Play. App Store spending was about $6 billion higher than Google Play. Combined, the estimate is that global spending on the two platforms was at $26.6 billion. That’s a 19.1% increase year on year. One thing that may have an impact on Google Play’s revenue is that it isn’t available in China, at all. Also, many Android apps are available in third-party stores which isn’t the case for iOS. The top grossing games across both stores were Honor of Kings, Monster Strike, and Fate/Grand Order. But, PUBG mobile was the most downloaded. All of this just goes to show that mobile gaming is here to stay and there’s a lot of money to be had.

 

Arena of Valor Revenue Passes $3 million in 7 Months

Arena of Valor

Its only been 7 months since Arena of Valor launched in the west and in that time they’ve brought in $3 million. For any other game that would be fantastic, but Arena of Valor is Tencent’s Honor of Kings, one of the most successful mobile games at the moment. The Chinese version of the game has 200 million players and in 2017 brought in $1.9 billion in revenue. The founder of Sensor Tower, the intelligence firm who released this information spoke about the launch of the game and why they think it’s underperforming. “Arena of Valor launched in the US just as the battle royale craze was beginning to heat up, with Fortnite hitting mobile three months later-and subsequently dominating the time and wallets of the very users Tencent’s MOBA is gunning for. Undeterred, the publisher has continued to build out the game in the West, adding new modes, content, and characters, most recently the eagerly anticipated debut of Batman as a playable hero.” All fair points…also, Batman will be playable? Where do I sign up?

 

Lootboxes

A patch was introduced to CS:GO for Dutch and Belgian players that locks containers, making it so you can’t open lootboxes in those countries. In June, Valve disabled item trading in the Netherlands in response to the threat of prosecution from the Dutch Gaming Authority. At the time they also said they hoped to fight it, now it seems that item trading is back but lootboxes may be gone for good.

A survey of gamers from the UK, France, Germany, and Spain has revealed that the majority of gamers are either unaware of lootboxes or largely indifferent to them. According to the survey, only 27% of gamers in these countries are aware of lootboxes. When it comes to general consumers that number drops to 17%. When asked if lootboxes are a positive influence on the games industry, 29% had no opinion while only 25% thought they don’t. In question after question, the respondents showed they had very little opinion on lootboxes at all. It would seem that those talking about them and thinking about them often are in the vocal minority.

The post MMO Money: Huge Disappointment for Tencent appeared first on MMOGames.com.