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E3 2021 catch up
If you’re like me, you spent the weekend longing for the mixed bag that is downtown Los Angeles during E3. I’ve got fond memories of fish tacos, The Last Bookstore, watching playoff basketball in garishly lit hotel lobbies and, of course, video game press conference after video game press conference.
For a second year in a row, the show’s gone all virtual, owing to…well, you know, that virus that has defined the past year and a half of our lives. Last year’s show was canceled altogether (though a handful of companies still kept to the schedule). Show organizers simply didn’t think they would be able to pull together a digital event — and frankly, it’s probably for the best that they understood those limitations.
The 2021 event, which kicked off on Saturday, marks the first all-virtual version of the event. For the time being, it’s also the last. Mayor Eric Garcetti kicked off the show by announcing that E3 would return to the LA Convention Center in 2022.
Gaming had a banner 2020, and while growth has slowed, as parts of the world look forward to a post-pandemic life, things are still growing. Some well-timed numbers from NPD this morning point to a 3% year-over-year growth for May 2021, as spending on gaming rose to $4.5 billion. Year-to-date, things are up 17%.
The timing of last year’s canceled event was certainly unfortunate from a hardware standpoint. Console refreshes are massive events at E3. 2020 gave us the PlayStation 5 and Xbox Series X. Announcements were relegated to Sony and Microsoft’s own events. That meant the companies were able to draw things out — revealing small details, piece by piece, rather than saving everything for the big show. It’s a strategy that lends itself much better to virtual presentations and blog posts than it does big conventions.
Sony is sitting this one out, too. While it’s entirely possible the company will be holding a big, virtual State of Play event at some point this summer, it won’t be tied to E3. Still, some Sony execs like PlayStation Studios head Hermen Hulst used the opportunity congratulate Microsoft on “a great showcase” on Twitter. So that’s a nice thing.
Thus far, Microsoft is the only one of the big three to present at the event. Nintendo will be holding a Treehouse event tomorrow. The Switch Pro could be on tap for the event, with an upgraded OLED display and internals. That would likely also mean a bunch of upgraded content for the new version of the four-year-old console.
Microsoft, meanwhile, went big on games. Understandable, given the recent launch of the Series X. And, let’s face it, these virtual events are perfectly suited for playing a whole bunch of trailers. The company showcased 30 games (and a fridge) in all. Of those, 27 will be part of the Xbox Game Pass, in case you had any doubt about what the future of gaming on the Xbox will look like. The event was framed as a combination Xbox and Bethesda showcase, having acquired the publisher earlier this year.
“Our growing family of 23 studios is devoted to advancing the medium we all love,” the company writes, “so we were happy to share that now through the end of the year, you can look forward to back-to-back monthly releases coming to Xbox Game Pass on day one, led by a record five new titles from Xbox Game Studios this holiday, including Halo Infinite.”
Highlights include:
Halo Infinite got a trailer and some in-game multiplayer footage. The latest version of the beloved Xbox mainstay is arriving this holiday season.
Starfield will be arriving November 11 [deep breath] 2022. The expansive space title will be an Xbox exclusive at launch.
Forza Horizon 5 will arrive in November. The latest installment of the popular racing series is set in Mexico.
In a no-brainer crossover event, Sea of Thieves will be teaming up with Pirates of the Caribbean for gameplay featuring Captain Jack Sparrow and others.
Age of Empires IV got an extended trailer and release date: October 28.
Battlefield 2042 got its first gameplay, including a sweet new wing suit.
Microsoft’s Flight Simulator will be hitting the new Xboxes on July 27th, along with a Top Gun expansion pack. That’s in honor of Top Gun: Maverick, which is apparently still coming out at some point.
Square Enix also held its customary big showcase on Sunday. The publisher will be releasing a bunch of new Marvel titles. Highlights include:
The long-awaited Guardians of the Galaxy. The adventure title is set to launch this October.
Marvel’s Avenger, meanwhile, will be getting the Black Panther-themed expansion pack, War for Wakanda. That’s arriving in August.
It wouldn’t be a Square Enix event without a Final Fantasy spinoff, right? The perennial favorite RPG is birthing Stranger of Paradise Final Fantasy Origin, which arrives on a slew of different platforms next year.
Ubisoft, meanwhile, made waves on Saturday with a first look at the new Avatar adaptation, Avatar: Frontiers of Pandora.
Tom Clancy’s Rainbow Six: Extraction is due out on September 16. Originally titled Rainbow Six: Quarantine, the name was changed for obvious reasons.
Capcom and Take-Two will showcase tonight, followed by Nintendo Direct and Bandai Namco tomorrow. On Thursday, EA is set to hold its own Play Live event. Meanwhile, here’s some video of that new Xbox fridge. Who said there wasn’t any new hardware?
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NBA Top Shot maker Dapper Labs is now worth $2.6 billion thanks to half of Hollywood, the NBA and Michael Jordan
From the early success of Crypto Kitties to the explosive growth of NBA Top Shot, Dapper Labs has been at the forefront of the cryptocurrency collectible craze known as NFTs.
Now the company is reaping the benefits of its trailblazing status with a new $305 million financing led by some of the biggest names in Hollywood, sports and investing.
The new round values the company at a whopping $2.6 billion, according to multiple media reports, and comes at a time when NFTs have captured the popular imagination.
Leading the company’s financing was Coatue, the financial services firm that’s behind many of the biggest later-stage tech deals. But heavy hitters from the entertainment world also took their cut — these are folks like NBA legend Michael Jordan as well as current players and funds including Kevin Durant, Andre Iguodala, Kyle Lowry, Spencer Dinwiddie, Andre Drummond, Alex Caruso, Michael Carter-Williams, Josh Hart, Udonis Haslem, JaVale McGee, Khris Middleton, Domantas Sabonis, Klay Thompson, Nikola Vucevic and Thad Young and Richard Seymour’s 93 Ventures.
Entertainment and music heavyweights including Ashton Kutcher and Guy Oseary’s Sound Ventures, Will Smith and Keisuke Honda’s Dreamers VC, Shawn Mendes and Andrew Gertler’s AG Ventures, Shay Mitchell and 2 Chainz also bought in on the action.
And from the venture world comes other strategic investors like Andreessen Horowitz, The Chernin Group, USV, Version One and Venrock.
The company said it would use the funds to continue building out NBA Top Shot and expanding the updated digital trading card platform to other sports and a broader creator community.
Top Shot has already notched over $500 million in sales for its animated trading cards featuring things like LeBron James dunking, and the sky (at least for now) is seemingly the limit for the collectible applications of blockchain.
It’s like the one thing that cryptocurrency can do really well and it’s been embraced far beyond the world of sports collectibles. The recent $69 million sale of a digital piece of art at Christies also marks a watershed moment for the art world.
“NBA Top Shot is successful because it taps into basketball fandom — it’s a new and more exciting way for people to connect with their favorite teams and players,” said Roham Gharegozlou, CEO of Dapper Labs. “We want to bring the same magic to other sports leagues as well as help other entertainment studios and independent creators find their own approaches in exploring open platforms. NFTs unlock a new model for monetization that benefits the fans much more than advertising or sponsorships.”
Powering the Top Shot system and Dapper Labs’ other offerings is a new blockchain protocol called Flow, which purports to handle mainstream consumer applications at scale, and can support mass adoption.
Flow also allows for transactions using fiat currency and credit cards, and provides a much needed ease of cryptocurrency, and can keep customers safe from the fraud or theft common in cryptocurrency systems, according to a statement from Dapper Labs.
Flow enables NFT marketplaces and other decentralized applications that need to scale to handle mainstream demand without extremely high transaction costs (“gas fees”) or environmental concerns, the company said.
“NBA Top Shot is one of the best demonstrations we’ve seen of how quickly new technology can change the landscape for media and sports fans,” said Kevin Durant, co-founder of Thirty Five Ventures. “We’re excited to follow the progress with everything happening on Flow blockchain and use our platform with the Boardroom to connect with fans in a new way.”
Already companies like Warner Music Group, Ubisoft, Warner Media and the UFC, as well as thousands of third-party developers, artists and other creators, are using the Flow mainnet to sell collectible cards and develop custodial wallets.
Additional investors in the round include: MLB players like Tim Beckham and Nolan Arenado; NFL players Ken Crawley, Thomas Davis, Stefon Diggs, Dee Ford, Malcom Jenkins, Rodney McLeod, Jordan Matthew, Devin McCourty, Jason McCourty, DK Metcalf, Tyrod Taylor and Trent Williams; team ownership, including Vivek Ranadivé (Kings); and notable sports investors Bolt Ventures.
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Cloud-gaming platforms were 2020’s most overhyped trend
It was an unprecedented year for [insert anything under the sun], and while plenty of tech verticals saw shifts that warped business models and shifted user habits, the gaming industry experienced plenty of new ideas in 2020. However, the loudest trends don’t always take hold as predicted.
This year, Google, Microsoft, Facebook and Amazon each leaned hard into new cloud-streaming tech that shifts game processing and computing to cloud-based servers, allowing users to play graphics-intensive content on low-powered systems or play titles without dealing with lengthy downloads.
It was heralded by executives as a tectonic shift for gaming, one that would democratize access to the next generation of titles. But in taking a closer look at the products built around this tech, it’s hard to see a future where any of these subscription services succeed.
Massive year-over-year changes in gaming are rare because even if a historically unique platform launches or is unveiled, it takes time for a critical mass of developers to congregate and adopt something new — and longer for users to coalesce. As a result, even in a year where major console makers launch historically powerful hardware, massive tech giants pump cash into new cloud-streaming tech and gamers log more hours collectively than ever before, it can feel like not much has shifted.
That said, the gaming industry did push boundaries in 2020, though it’s unclear where meaningful ground was gained. The most ambitious drives were toward redesigning marketplaces in the image of video streaming networks, aiming to make a more coordinated move toward driving subscription growth and moving farther away from an industry defined for decades by one-time purchases structured around single-player storylines, one dramatically shaped by internet networking and instantaneous payments infrastructure software.
Today’s products are far from dead ends for what the broader industry does with the technology.
But shifting gamers farther away from one-off purchases wasn’t even the gaming industry’s most fundamental reconsideration of the year, a space reserved for a coordinated move by the world’s richest companies to upend the console wars with an invisible competitor. It’s perhaps unsurprising that the most full-featured plays in this arena are coming from the cloud services triumvirate, with Google, Microsoft and Amazon each making significant strides in recent months.
The driving force for this change is both the maturation of virtual desktop streaming and continued developer movement toward online cross-play between gaming platforms, a trend long resisted by legacy platform owners intent on maintaining siloed network effects that pushed gamers toward buying the same consoles that their friends owned.
The cross-play trend reached a fever pitch in recent years as entities like Epic Games’ Fortnite developed massive user bases that gave developers exceptional influence over the deals they struck with platform owners.
While a trend toward deeper cross-play planted the seeds for new corporate players in the gaming world, it has been the tech companies with the deepest pockets that have pioneered the most concerted plays to side-load a third-party candidate into the console wars.
It’s already clear to plenty of gamers that even in their nascent stages, cloud-gaming platforms aren’t meeting up to their hype and standalone efforts aren’t technologically stunning enough to make up for the apparent lack of selection in the content libraries.
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Ubisoft’s subscription service comes to Stadia and Luna
Ubisoft originally announced its subscription service back in June. Today, the company is rebranding the service from UPlay+ to Ubisoft+. The service is also on its way to Amazon’s Luna and Google’s Stadia. Ubisoft is betting on a multi-platform subscription, which means that you’ll be able to subscribe once and play Ubisoft+ games on PC, Amazon Luna and Stadia.
Ubisoft+ is already available on PC. For $14.99 a month, you can download and play more than 100 games — the service includes both classics and newly released titles, such as games in the Splinter Cell and Prince of Persia franchises as well as the company’s upcoming releases. Assassin’s Creed Valhalla, Watch Dogs Legion and Immortals Fenyx Rising will be available in the Ubisoft+ library on their respective launch days.
Ubisoft is trying to include premium editions of the games so that you don’t have to pay for game passes to access additional content. For instance, you can play the ultimate editions of Rainbow Six Siege, The Division 2, Assassin’s Creed Odyssey, etc.
On November 10, you’ll be able to access Ubisoft+ games on Amazon Luna is you’re beta testing Amazon’s cloud gaming service. And Google will also let you connect your Ubisoft+ account with Stadia by the end of the year. Interestingly, you don’t need to pay for Stadia Pro to access Ubisoft+ titles.
Ubisoft is working on cross-platform progression, starting with upcoming titles. It’s a subscription focused on content, not platforms.
As you can see, Microsoft and Sony don’t support Ubisoft+. It means that you won’t be able to subscribe and play on your Xbox or PlayStation. Console manufacturers take a cut on game purchases. That’s why negotiations between third-party game studios and console manufacturers are more complicated.
Image Credits: Ubisoft
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Netflix is developing a live action ‘Assassin’s Creed’ show
Netflix announced this morning that it’s partnering with Ubisoft to adapt the game publisher’s “Assassin’s Creed” franchise into a live action series.
The franchise jumps around in history, telling the story of a secret society of assassins with “genetic memory” and their centuries-long battle the knights templar. It has sold 155 million games worldwide and was also turned into a nearly incomprehensible 2016 film starring Michael Fassbender and Marion Cotillard, which underperformed at the box office.
The companies say that they’re currently looking for a showrunner. Jason Altman and Danielle Kreinik of Ubisoft’s film and television division will serve as executive producers. (In addition to working on adaptations of Ubisoft’s intellectual property, the publisher is also involved in the Apple TV+ industry comedy “Mythic Quest.”)
“We’re excited to partner with Ubisoft and bring to life the rich, multilayered storytelling that Assassin’s Creed is beloved for,” said Netflix’s vice president of original series Peter Friedlander in a statement. “From its breathtaking historical worlds and massive global appeal as one of the best selling video game franchises of all time, we are committed to carefully crafting epic and thrilling entertainment based on this distinct IP and provide a deeper dive for fans and our members around the world to enjoy.”
It sounds like there could be follow-up shows as well, with the announcement saying that Netflix and Ubisoft will “tap into the iconic video game’s trove of dynamic stories with global mass appeal for adaptations of live action, animated, and anime series.”
Netflix recently placed an eight-episode order for “Resident Evil,” another video game franchise that was previously adapted for the big screen. And it also had a big hit with its adaptation of “The Witcher,” which is based on a fantasy book series that was popularized via video games.
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Ubisoft teases Assassin’s Creed and Splinter Cell VR titles for Oculus
One of the biggest complaints around VR is the same issue that’s plagued generations of gaming platforms: content. A console is only as good as its games, as the saying goes. Today at Facebook Connect, however, Oculus just added two of gaming’s biggest franchises to its slate of upcoming titles.
Ubisoft marked the event by announcing that it will be bringing Assassin’s Creed and Splinter Cell games to VR. The key details are still extremely thin at the moment, but the gaming giant calls them both “new, made-for-VR,” implying that they’ll be more than just ports of existing games.
Production for both is being spearheaded by Ubisoft’s Red Storm subsidiary. The developer has been working on Tom Clancy titles since the late-90s. It’s also behind a handful of VR titles, including 2017’s Star Trek: Bridge Crew.
More details — including timing — will be available closer to launch. Whenever that is.
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Despite pandemic, gaming is well-positioned to withstand recession
Efforts to slow the spread of COVID-19 have led to a global economic downturn, but the gaming industry is booming.
With hundreds of millions of people sequestered in their homes, game usage has spiked. And while the economic repercussions will persist after people cease physical distancing, gaming is positioned to fare well during a recession.
Video game usage increased 75% during peak hours
Video game usage during peak hours increased 75% in the first week many Americans began staying home, according to Verizon data. Game distribution platform Steam set a record for peak concurrent users (more than 20 million) on March 16 without any notable new releases driving demand. Gaming chat platform Discord saw its servers go down briefly last week even after the company increased capacity by more than 20% to handle surging usage.
According to Siamc Kamalie, manager of hedge fund Skycatcher, “average time spent per user on mobile games grew 41% during Chinese New Year in 2020 versus 2019, and was up 18% versus the week prior to Chinese New Year in 2020.” (Chinese New Year is when widespread stay-at-home orders began in China.)
All of the gaming industry professionals I’ve spoken to over the last week noted increased popularity of their games, though most were wary of sharing their strong performance publicly, given the unfortunate circumstances.
People don’t just turn to games for entertainment; especially when in-person interactions are restricted and most of the most popular games are multiplayer in one form or another — games also serve as social hangout spots.
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Google Cloud launches Game Servers, a managed cloud backend for games
Google Cloud today announced the beta launch of Game Servers, a managed service that provides game developers with the usual backend services for running their games, including multi-player games, in the company’s cloud. It’s worth stressing that these are not game streaming servers but solely meant to make it easier for game developers to build, scale and manage the backend services for their games.
The service sits on top of the Agones open-source game server, a project Google and Ubisoft first announced in 2018, and the Kubernetes container orchestration platform. As Google Cloud product manager Scott Van Woudenberg told me, the team is also reusing some parts of Anthos, Google’s service for managing multi-cloud Kubernetes clusters. And while Game Servers can currently only run on the Google Kubernetes Engine, the plan is to allow for hybrid and multi-cloud support later this year.
Quite a few gaming companies have already built their own on-premises server fleets, so just like in the enterprise, having hybrid-cloud capabilities is a must-have for a tool like this. Google will also make it easy for developers who already use Agones outside of Game Servers today to bring those servers into the same managed Game Servers ecosystem by registering them with the Game Servers API.
As Van Woudenberg noted, virtually every game now needs some kind of cloud backend, be that for multi-player features, match-making or keeping persistent game stats, for example. That’s true for indie developers and major game studios. Game Servers, ideally, will make it easier for these companies to scale their clusters up and down as needed. Game Servers also provides for A/B testing and canary tests, and, in future updates, it will include integrations with the Open Match matchmaking framework.
To get started, developers still have to containerize their game servers. For those companies that already use Agones, that’s a pretty straightforward exercise, Van Woudenberg said. Others, though, need a bit more help with that, and Google is working with partners to walk them through this.
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Tencent to grow gaming empire with $148M acquisition of Conan publisher Funcom in Norway
Tencent, one of the world’s biggest video and online gaming companies by revenue, today made another move to help cement that position. The Chinese firm has made an offer to fully acquire Funcom, the games developer behind Conan Exiles (and others in the Conan franchise), Dune and some 28 other titles. The deal, when approved, would value the Oslo-based company at $148 million (NOK 1.33 billion) and give the company a much-needed cash injection to follow through on its longer-term strategy around its next generation of games.
Funcom is traded publicly on the Oslo Stock Exchange, and the board has already recommended the offer, which is being made at NOK 17 per share, or around 27% higher than its closing share price the day before (Tuesday).
The news is being made with some interesting timing. Today, Tencent competes against the likes of Sony, Microsoft and Nintendo in terms of mass-market, gaming revenues. But just earlier this week, it was reported that ByteDance — the publisher behind breakout social media app TikTok — was readying its own foray into the world of gaming.
If it goes ahead, that would set up another level of rivalry between the two companies. Tencent also has a massive interest in the social media space, specifically by way of its messaging app WeChat . While many consumers will have multiple apps, when it comes down to it, spending money in one represents a constraint on spending money in another. ByteDance currently profits from having content on its social apps related to Tencent gameplay, so building its own content could be one way of moving away from that. The two have (naturally) also been battling it out in court in China over unfair competition claims, in part related to that gaming content.
Today, Tencent is one of the world’s biggest video game companies: in its last reported quarter (Q3 in November), Tencent said that it make RMB28.6 billion ($4.1 billion) in online gaming revenue, with smartphone games accounting for RMB24.3 billion of that.
Acquisitions and controlling stakes form a key part of the company’s growth strategy in gaming. Among its very biggest deals, Tencent paid $8.6 billion for a majority stake in Finland’s Supercell back in 2016. It also has a range of controlling stakes in Riot Games, Epic, Ubisoft, Paradox, Frontier and Miniclip. These companies, in turn, also are making deals: just earlier this month it was reported (and sources have also told us) that Miniclip acquired Israel’s Ilyon Games (of Bubble Shooter fame) for $100 million.
Turning back to Funcom, Tencent was already an investor in the company: it took a 29% stake in it in September 2019 in a secondary deal, buying out KGJ Capital (which had previously been the biggest shareholder).
“Tencent has a reputation for being a responsible long-term investor, and for its renowned operational capabilities in online games,” said Funcom CEO Rui Casais at the time. “The insight, experience, and knowledge that Tencent will bring is of great value to us and we look forward to working closely with them as we continue to develop great games and build a successful future for Funcom.”
In retrospect, this was laying the groundwork and relationships for a bigger deal just months down the line.
“We have a great relationship with Tencent as our largest shareholder and we are very excited to be part of the Tencent team,” Casais said in a statement today. “We will continue to develop great games that people all over the world will play, and believe that the support of Tencent will take Funcom to the next level. Tencent will provide Funcom with operational leverage and insights from its vast knowledge as the leading company in the game space.”
The rationale for Funcom is that the company had already determined that it needed further investment in order to follow through on its longer-term strategy.
According to a statement issued before it recommended the offer, the company is continuing to build out the “Open World Survival segment” using the Games-as-a-Service business model (where you pay to fuel up with more credits); and is building an ambitious Dune project set to launch in two years.
“Such increased focus would require a redirection of resources from other initiatives, the most significant being the co-op shooter game, initially scheduled for release during 2020 that has been impacted by scope changes due to external/market pressures with increasingly strong competition and internal delays,” the board writes, and if it goes ahead with its strategy, “It is likely that the Company will need additional financing to supplement the revenue generated from current operations.”
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Assassin’s Creed Odyssey gets an educational mode — complete with quizzes
In my review of Assassin’s Creed: Odyssey, I was blown away by the authenticity and level of detail in the game world. The game itself — well, it was fine. But the highlight was ancient Greece in all its classical splendor, and a new educational Discovery Tour mode aims to teach the history of that society through a gaming lens.
The free update, available now to anyone who owns the game, adds dozens of historical “tours” guided by a NPC, in which you can learn about the cities of ancient Greece, the life and crafts of the people who lived there, what they believed and how they were governed, and of course the many famous battles of the era.
It’s an expanded version of a similar feature created for Assassin’s Creed: Origins, which was set in ancient Egypt. It seemed wasteful then, as in Odyssey, to create such a rich world and just have you stab your way through it. Obviously others at Ubisoft felt the same way, especially Discovery Mode director Maxime Durand, who says he envisioned a feature like this a decade ago.
And how could you not with the Assassin’s Creed series? From the very first one players were immersed in a painstakingly recreated period of history that gave variously accurate but always compelling experiences of really living in that bygone era. All the work that went into making it convincing can easily — well, perhaps not easily, but directly — be applied to educating the player as well as thrilling them.
And quizzing them! The end of each guided tour will have an optional live quiz-type chat with the guide, which Ubisoft assures players will be fun and not for a grade. I’d probably skip it myself. But history teachers will probably make you do it for extra credit or something.
There are 30 discovery sites, each with its own tour and modern-day context, so for example an artist in-game may explain how they sculpt, but then you’ll also see a museum artifact showing the process in “real life.”
Here’s hoping the history lessons are a little less lenient on the topic of slavery than some of the quests were.
“I think learning is a lot about agency… as soon as someone tells you you have to learn about something, there’s some of the fun taken away from it,” said Ubisoft’s Alicia Fortier. “So if we look at learning as play and as exploring, we need to make sure players can focus on what’s interesting to them and then they’ll naturally get more curious.”
The Discovery Tour update is free for all players today. Go, learn something.
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