Saturday, May 23, 2015

A Look At Activision's New eSports Revenue Play


League of Legends" and the "Defense of the Ancients" games have long-dominated the Multiplayer Online Battle Arena (MOBA) genre of electronic sports. These games combined for just over $1 billion from January to September 2014, according to SuperData Research via Venture Beat.
These games have been key players in the history of eSports, but there have been issues with learning curves and toxic communities preventing widespread popularity among casual gamers.
Enter Activision Blizzard, Inc. (NASDAQ: ATVI), which came up with its self-proclaimed "Brawler" to separate itself from other MOBAs. While criticized for some of its dynamic changes compared to traditional MOBAs, Activision Blizzard looks to simplify the game for the more casual gamers. Blizzard, a subsidiary of Activision Blizzard, will release "Heroes of the Storm" on June 2.
Mixed Success?
Speaking to Benzinga, Sterne Agee CRT analyst Arvind Bhatia said he believes "Heroes of the Storm" success will fall somewhere between "League of Legends" and the failed Electronic Arts Inc. (NASDAQ: EA) MOBA "Dawnsgate." Bhatia said the title, "will gain slow, small market to start through six months and attracting a bigger audience over a year from launch."
With recent social media attention from "Heroes of the Dorm" championship on ESPN2, Bhatia believes this could be an "interesting partnership [and] trend for ESPN."

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