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Discussion: Prize pool cap by Blizzard. - Page 3

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Keap
Profile Joined July 2010
United States214 Posts
July 24 2011 17:23 GMT
#41
Blizzard will take it's cut, of course. I know this "big business" view may not be popular but it's 100% justifiable for them to have whatever policy they deem appropriate when it comes to tournaments. They spent (supposedly) $100 mil to develop and market SC2, not to mention the incurring costs of keeping battle.net up and the workforce to support it. People organizing tournaments spend $60 to buy the game, and in doing so agreed to Blizzard's terms in regards to everything related to SC2 - from streaming it, tempering with it, maintenance, and creating tournaments for it.

Since SC2 came out there have been an always increasing number of big (over $5000 prize pool) tournaments that have been flourishing, as well as thousands of small tournaments that have also been doing well and generating revenue for the streamers/organizers. There is no reason for them to change the policy if it's working and everyone is making money.
wklbishop
Profile Joined July 2011
United States1286 Posts
July 24 2011 17:24 GMT
#42
Blizzard is entitled to do this, but I find it foolish in the sense that a country can tax a company 50%, but that would stiffle the company's growth and thus how much can be taxed; I'll bet if the tax was lowered, the various tournaments in this case would grow tremendously and Blizzard would make lots more money because they have more to tax even with a lower tax rate.

Of course, the correlation between growth of tournaments' revenue and Blizzard taxing requires studies to pinpoint a good number that makes sense for Blizzard requires a study to be done, but my point is that 50% is way too arbitrary and more than likely too high to make much sense.
Gameplay > Personality
Turbo.Tactics
Profile Joined April 2010
Germany675 Posts
July 24 2011 17:24 GMT
#43
This shouldnt be suprising to anyone. Blizzard is growing esports by creating awesome games and of course they want a piece of that cake because they learned it the hard way with Broodwar and ICCUP and Kespa and whatnow. This is not killing esports this is effectively what keeps Blizzard into Esports and growing it.
Zerg - because Browders sons hate 'em
TheOnlyOne
Profile Joined August 2010
Germany155 Posts
July 24 2011 17:35 GMT
#44
Blizzard takes money from the tournaments, which in fact "hurts" e-sports.

To be true, they should see the tournaments as "free advertisment" for their game.

Right now, Blizzard acts not like they should, if they really care for E-Sports (which they obvisious don't ; its money that rulez, not E-Sports).


I'm not sold to how Blizzard acts, and i am not good with how it evolves.

*The second someone creates a way to bypass Battlenet and play the game without Blizzard (in the way) ; E-Sport might rise way more in SC2 ; otherwise theirs allways this problems connected with Blizzard.

**Big Events with giant cash out should be "awesome" events that push the game and make its E-Sport way more attractive ; if Blizzard "taxes" this kind of events, it just pushes tons of "small" events , nobody really cares for the super small ones.
Zechs
Profile Blog Joined August 2010
United Kingdom321 Posts
July 24 2011 17:43 GMT
#45
This whole "they're a business, deal with it" argument is really tired.
Esports and stuff: zechleton.tumblr.com
branflakes14
Profile Joined July 2010
2082 Posts
July 24 2011 17:46 GMT
#46
Starcraft 2 is the property of Blizzard. The tournament isn't. I think it's outrageous they'd ask for money from tournaments when they've done none of the work involved in it beyond running off a copy of a game which every single player has already paid for.
MadChem
Profile Blog Joined January 2011
Germany218 Posts
Last Edited: 2011-07-24 17:49:17
July 24 2011 17:48 GMT
#47
On July 25 2011 02:43 Zechs wrote:
This whole "they're a business, deal with it" argument is really tired.


I totally agree. I feel like Blizzard see's eSports as: volunteers making it happen
and we can "harvest" the money they earn...
"I am become death, the destroyer of worlds." - Oppenheimer
turamn
Profile Blog Joined October 2010
United States1374 Posts
Last Edited: 2011-07-24 17:52:09
July 24 2011 17:50 GMT
#48
Blizzard is entitled to impose whatever restrictions they want on tournaments. I feel like it's really a non-issue at the current time because, just as TB said, how easy is it to just run a second tournament?

However, I feel like Blizzard will take measures to stop this so they can get the ad dollars should it become a common practice.

EDIT: Above poster, of course that's the case. They didn't decide to make SC2 because they wanted to further the e-sports scene. They made it to cash in. Thinking otherwise is just nieve.
ehalf
Profile Joined September 2010
408 Posts
July 24 2011 17:52 GMT
#49
On July 25 2011 01:34 caradoc wrote:
Its certainly acceptable. 50% is a guideline, blizzard makes specific arrangements with specific tournaments so its not an across the board requirement.

In addition, 50% is ad revenue only, things like tickets for events, stream sales, and individual relationship between sponsors and tournaments are obviously exempt.

Think of it this way-- do you want blizzard's only revenue stream from SC2 to be from game sales? If so, the life cycle of sc2 will be extremely short. This is good policy.


Quite true. Most tournament is mainly supported from sponsors not ads. Ads revenue is not a lot of money even considering very big event like DH, MLG. GSL maybe different, but the ads are in Korea and I doubt it will earn a lot from ads coz Gomtv is a online TV ... Besides, Blizzard should already work out a system with Gom.
Novalisk
Profile Blog Joined February 2011
Israel1818 Posts
July 24 2011 17:53 GMT
#50
Is it prize pool or first place prize? Seeing as MLG has 5k first place up until the grand finals, where is the official announcement from Blizzard concerning this matter?
/commercial
turamn
Profile Blog Joined October 2010
United States1374 Posts
July 24 2011 17:54 GMT
#51
MLG surely has sanctions from Blizzard to go higher than the standard.
Keap
Profile Joined July 2010
United States214 Posts
July 24 2011 18:08 GMT
#52
You are aware that people organizing tournaments are also a business and are PROFITING from sponsors, advertisement, and ticket sales using Blizzard's intellectual property right?

Of course they expect some money in return. Not to mention big leagues such as MLG and GSL surely have agreements with Blizzard to pay less than 50%.
Pinski
Profile Joined September 2010
United States126 Posts
July 24 2011 18:09 GMT
#53
I think a lot of people are somewhat misunderstanding this issue.

It's not that if you have a $10k prize pool, blizzard gets $2.5k off the top, it's that if you have a $10k prize pool, and you make say $2k off ad revenue, blizzard gets $1k of that money.

They need to setup a sliding scale based on prize pool. Because let's face it, just because a tournament goes above $5k in prize pool doesn't mean that it's ad revenue miraculously increases two-fold to make the tourney holder that much more money.

Either way, I'm sure bigger companies have a crack team of accountants that deal with all the paying of blizzard for their 50% ad revenue.
rickybobby
Profile Joined October 2010
United States405 Posts
July 24 2011 18:10 GMT
#54
i dont really care about the numbers, but i think blizzard should try to do whatever is most conducive to the growth of esports because that will end up working out best foar everyone.
Ryalnos
Profile Joined July 2010
United States1946 Posts
July 24 2011 18:13 GMT
#55
It's justifiable for them to do this, the question is whether it's smart business practice/good for eSports growth.
ehalf
Profile Joined September 2010
408 Posts
July 24 2011 18:20 GMT
#56
On July 25 2011 02:53 Novalisk wrote:
Is it prize pool or first place prize? Seeing as MLG has 5k first place up until the grand finals, where is the official announcement from Blizzard concerning this matter?


Even for our current major event MLG, sadly the ads revenue is kind of negligible ... If you see a lot of ads of dr.pepper Blizzard get $0 coz it's it is MLG sponsor. Ads only become important once you are on the real TV.

As long as SC2 is not in ESPN, u never have to worry about this. I think this policy is mainly to control the televised games like the BW situation in Korea right now. I seriously doubt SC2 will one day on NA/EU mainstream TV.
ShadowWolf
Profile Joined March 2010
United States197 Posts
July 24 2011 18:28 GMT
#57
Honestly, without knowing how the rules actually work, the policies, and what the 50% is calculated based on ( gross ad revenue or ...? ) making any commentary on this is foolish.
aksfjh
Profile Joined November 2010
United States4853 Posts
July 24 2011 18:33 GMT
#58
Honestly, I'd like to see them lower the rate to 10-20%, but make the cutoff lower, like $1000 or even $500. That way, if you're running anything other than a weekly or small local tournament, you can expect to pay ad fees, but they aren't as crippling as 50%.
Timestreamer
Profile Joined March 2011
Israel157 Posts
July 24 2011 18:37 GMT
#59
This is interesting.

Let's say I can prove(legally speaking) that my event lost revenues because a major game got cut off because BNET was down, because of lag, because there was no LAN, whatever the reason might be - that it was Blizzards fault - can I sue them? After all, if they can have 50% of my profits, then they can surely have 50% of the responsibility for me losing money....

Yea, guess that's not going to happen, now is it?
arterian
Profile Joined September 2010
Canada1157 Posts
July 24 2011 18:39 GMT
#60
50% holy shit no wonder Blizzard is trying to promote e-sports, it fucking lines their pockets.
http://www.twitch.tv/arterian
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