05/25/23: TSM, one of the foundational members of the League of Legends Championship Series, is looking to sell its LCS slot

Thursday May 25, 2023

Good morning! It’s Thursday and this is your early morning Esports and Gaming brief.

TSM, one of the foundational members of the League of Legends Championship Series, is looking to sell its LCS slot and move into a different competitive region, founder and CEO Andy Dinh confirmed. The team, which has become synonymous with North American League of Legends and is one of the best-known esports organizations worldwide, is aiming to become a franchised member of another Tier 1 league such as the League of Legends Pro League (China), League Europe/Middle East/North Africa Championship or League Champions Korea.

The New York Times reports TSM began speaking to interested parties in early May and is asking for $20 million for its LCS slot. The plan to transition to a new region, Dinh said, has been in the works for the past three years. And while TSM’s owner said in a video announcement early this week that the decision was unrelated to economic headwinds and instead based on TSM’s desire to be more competitive in international play, the move has been cynically placed as another example of organizations’ desire to seek greener pastures outside of a struggling North American esports market.

That opinion neglects the fact that competitive gaming’s struggles are global in nature and that, to counteract current economic trends, teams should be looking for opportunities to expand their brands in proven markets. TSM’s sale of its LCS slot could give it access to a region that better aligns with the organization’s hopes of bringing home a world championship, and any regional shift could also open new market opportunities for TSM, which is a recognized name both in South Korea and China, the ripest traditional esports markets in the world.

COMPETITION AND GAMING NEWS

Team Vitality won the final Counter-Strike: Global Offensive Major with a 2-0 win over GamerLegion to close out a decade of CS:GO competition. Vitality’s victory at the BLAST.tv Paris Major marks the end of an era for Counter-Strike esports, which is coming up on a month-long competition break and the Summer 2023 release of Counter-Strike 2, Valve’s next edition of the title. The Major’s final drew 1.52 million peak viewers, according to Esports Charts, the third-highest peak viewership total of any CS:GO competition.

League Championship Series players will reportedly vote on a walkout at the request of the LCS Players Association following League of Legends developer Riot Games’ decision to rescind the requirement for LCS teams to field a North American Challengers League team. According to Mikhail Klimentov, the NACL, the developmental league for the LCS, has been upended by the decision, which Riot supported after teams requested the removal of the stipulation as a cost-cutting measure. Of the 10 LCS teams, only three will now field squads in the 16-team NACL, a move that the LCSPA says affected “as many as 70 players, coaches and managers” in the amateur league, according to a statement from the association. “Riot lied to us,” LCSPA executive director Phil Aram told Klimentov. “And the outcome of that lie is that half our players’ jobs are gone overnight.”

The popular Mortal Kombat fighting game series is getting a reboot with its next title circling back from Mortal Kombat 11 to Mortal Kombat 1. The title, which will release later this year, will bring fans of the NetherRealm Studios game into an alternate universe. The shift in scene will allow the studio to revamp the combat system and game modes as the storied franchise shifts to next-gen hardware. Mortal Kombat esports competitions typically surge around the time of new releases, so expect to see some new opportunities in the space as MK1 makes what could be its biggest shift since moving from arcades to home consoles.

Male characters in role-playing games have 50% more dialogue than women, according to a study published in the Royal Society Open Science journal. The research, which was put on by University of Cardiff and University of Glasgow, looked at 50 RPGs released from 1986 to 2020 and determined nearly 95% of them feature more dialogue from men than women. However, the report also points to a positive trend in representation: While women only spoke an average of 18% of the dialogue in the studied RPGs during the 1980s, that number increased by about 6% per decade to around 40% in 2020.

SPONSORSHIP & ACTIVATION

Evil Geniuses has partnered with crypto casino platform Thunderpick as a sponsor for its Counter-Strike teams. Thunderpick will be the leading partner for all three of EG’s CS:GO programs, the organizations announced, with the esports-focused betting site working on event activations and promotional content with Evil Geniuses.

Esports archive Liquipedia has added Formula 1 Racing content pages as the platform expands beyond its competitive gaming roots. Liquipedia, which acts as the largest repository of tournament and team information on the web, has operated for around 15 years. This is the first time it has reached outside of esports-related content, though the platform covers a broad swath of games, from the most popular titles in the world to niche games and independent tournaments.

Gen.G and McDonald’s will continue their partnership to put on the McDonald’s Gaming League, an esports competition provided to employees of McDonald’s franchises in multiple regions. Davis Elen, the advertising agency for the markets that support the McDonald’s Gaming League, will work with Gen.G on competitions for McDonald’s Southern California, Southern Plains (Kansas, Oklahoma, Texas), DMV (D.C., Maryland, Virginia) and the Pacific Northwest . “A positive employee experience is of course a priority for McDonald’s,” Patricia Chambers, Director of Media & Partnerships at Davis Elen, said in a statement, “and offering competitive gaming is a great way to promote that.”

TikTok took its first step into Counter-Strike esports by airing the BLAST.tv Paris Major playoffs live. Paris Major content on the social media platform passed 100 million views prior to the knockout stage, according to a statement, spurring the tournament organizer’s decision to bring the event to fans in-app. BLAST.tv has not yet reported the results of the activation, though it sets an interesting precedent for TikTok as it continues to integrate live gaming and streaming into its viral video offering.

STREAMHATCHET

EUROPEAN VIDEO GAME LIVE STREAMING TRENDS

This European Live-Streaming Trends Report dives into the regional streaming market and analyzes trends specifically for European countries in the global entertainment market. The report should be insightful for game publishers, brands, agencies, and esports stakeholders who are operating in the European market, and also for those who want to get a better idea of the global streaming market as a whole

Of the European esports events in Q1, over 60% of the hours watched were generated from non-English-speaking channels. In addition, of the 39.4% of the English-speaking hours watched last quarter, two-thirds of those channels were located in Europe.

Germany and Spain dominate the European market for live-streaming creator hours watched, with 209M and 201M respectively, in Q1 2023.

Download the Full Report Here

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YOUGOV LIVING DATA INSIGHTS

ashion and esports

Attitudinal data from YouGov Profiles data shows why esports sponsorships and partnerships might be an attractive proposition for apparel makers. American esports followers are more than twice as likely as the national population to say they spend a lot on clothes (64% vs 29%). They are also more than twice as likely to keep up with fashion trends (66% vs 32%) and consider themselves more fashionable than most people (65% vs 31%). Luxury fashion brands might find particularly good leverage among the esports crowd given they are 32-percentage points likelier to say they’d be willing to pay more for luxury brands (65% vs 33%).

TEAMS

FaZe Clan is cutting nearly 40% of its workforce, according to a report from Digiday, and former president and COO Zach Katz is resigning his position less than a year after joining the publicly traded esports and gaming lifestyle company. FaZe, which recently reported a $14 million net loss in Q1 of 2023, has consistently traded under $1 since early February as the organization has struggled to show a path to profitability since hitting the stock market in July 2022. Newly announced company president Erik Anderson and COO Christoph Pachler will lead efforts to turn around FaZe.

Content creator-owned esports organization Disguised has its eyes on League of Legends, founder Jeremy “Disguised Toast” Wang said on Twitter. Developer Riot Games’ decision to remove mandates that Tier 1 teams field an amateur organization in the North American Challengers League could open additional spots for grassroots organizations like Disguised, which has also fielded a VALORANT Challengers program and VALORANT Game Changers team, though the latter’s roster was released earlier this year.

Counter-Strike: Global Offensive veteran Finn “karrigan” Andersen has no plans to retire and hopes to be a significant part of the Counter-Strike 2 era alongside FaZe Clan. Karrigan, 33, has competed since 2006, first in Counter-Strike, then in CS:GO. He competed through the entirety of CS:GO’s esports life cycle, but despite being one of the oldest competitors in Counter-Strike esports, he said during the BLAST.tv Paris Major that he plans to re-sign with FaZe and push for a spot at the first-ever CS2 Major: the PGL CS2 Major Copenhagen in 2024.

Despite looking to sell its LCS slot, TSM is continuing business as usual for the summer and has confirmed its roster for the split. League veteran Kim “Fenix” Jae-hun, who has not played competitively since 2020, will make his return to the LCS as a substitute mid laner for TSM, which brought on former Heretics mid laner Lee “Ruby” Sol-min as its starter for the summer. Longtime North American standouts Jason “WildTurtle” Tran and Kevin “Haauntzer” Yarnell will take on starting roles in the bot lane and top lane, respectively, as TSM aims to improve on a seventh-place finish that left it out of playoff contention in the spring.

INDUSTRY

Indian regulators have granted a three-month trial period for Battlegrounds Mobile India following the game’s 2022 ban in India. BGMI has been banned twice by the country due to concerns about data privacy and availability of user data to China through South Korean publisher Krafton. BGMI and its parent game, PlayerUnknown’s BattleGrounds, were caught up among hundreds of apps with ties to China that were banned by the Indian government. PUBG and BGMI were two of the most popular titles in India prior to their banning, and Krafton’s previous decision to end its relationship with Chinese publisher Tencent could help turn this three-month trial into a return for PUBG and its affiliates in one of the game’s biggest markets.

China has approved Microsoft’s acquisition of Activision-Blizzard, with the country providing “unconditional clearance” for the deal, according to a statement from Microsoft to GamesIndustry.biz. China’s go-ahead follows the European Union’s decision to OK the deal last week and represents another hurdle cleared for Microsoft in securing its $69 billion purchase of the company known for Call of Duty, World of Warcraft, and Candy Crush (via mobile game developer King).

A new report from New York University indicates a trend of extremist actors creating content on gaming platforms, with more than half of players surveyed saying they have encountered user-generated content designed to “disseminate violent ideologies.” The research shows the dangerous side of creative freedom in user-generated content, which can also be used by fringe groups in recruiting and networking. Policing of user-generated content is one of the most difficult challenges facing publishers and brands exploring metaverse-like experiences in third-party worlds. “Gaming platforms tend to be left out of policy discussions about online social networks,” the NYU researchers said in their report. “The features that make gaming spaces distinctive and appealing to many users also make them vulnerable to exploitation. A growing body of research shows that certain games and adjacent platforms are used by extremists for signaling, networking, and mobilization. … Even though most games and gaming spaces were not designed for this purpose, they can and do enable bad actors to perpetrate real-world harm.”

Activision-Blizzard has faced some ups and downs in the past weeks outside of ongoing discussions about its acquisition by Microsoft. The Overwatch developer revealed it has scrapped plans for robust player-vs.-environment content additions to Overwatch 2, which sparked ire in the community; Overwatch 2 was largely positioned as a necessary shift from the original title to bring in PvE gameplay and provide players with new touchpoints for the franchise. However, after years of silence on the non-competitive piece of the game, Overwatch 2 game director Aaron Keller confirmed Hero Missions will not be released as originally planned. Meanwhile, Blizzard fans got a bit of respite with the news that BlizzCon will return to Anaheim, California, from Nov. 3-4, 2023. The event was canceled in 2022 as Blizzard “reimagined” the conference, which has been a staple of its annual programming prior to disruption by the COVID-19 pandemic.

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