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Economy taking the controls from some gamers

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talismania
Profile Blog Joined December 2007
United States2364 Posts
April 02 2009 13:01 GMT
#1
NY times article out today on the effect of the recession on pro-gaming in America... kind of a disheartening environment to release starcraft 2 into, eh? Although you have to wonder, since the rise of scbw in korea was coincident with that country coming out of a recession, so who knows.

http://www.nytimes.com/2009/04/02/sports/othersports/02video.html?partner=rss&emc=rss

+ Show Spoiler +
Until recently, Emmanuel Rodriguez worked on a stage, under bright lights, amid intense competition and before cheering fans. He was a professional video-game player, and a world champion.

Now he works at the customer service desk of a Sam’s Club in Dallas.

Rodriguez, a brash 23-year-old whose nickname in the gaming community is Master, dominated an international field in July in Dead or Alive 4, a popular fighting game, on the Microsoft Xbox 360. He picked up $5,000 and a trophy for the victory.

The competition, held in Los Angeles, was part of the world individual finals of the Championship Gaming Series, a league started two years earlier by News Corporation and DirecTV. And Rodriguez, given his success and his swagger, was a star. As a designated franchise player, he received a base salary of $30,000. During the regular season, he lost only one match, good enough to be named North American most valuable player.

For Rodriguez and others like him around the world, playing video games had become a career.

That, however, has changed for many players. Video games may be as popular as ever — people in more than 65 percent of American households play, according to the Entertainment Software Association — but the professional sport of gaming has nearly collapsed.

Major companies have pulled sponsorships and several tournaments have folded. And in November, News Corporation and DirecTV unexpectedly shut down the Championship Gaming Series.

Rodriguez and more than 100 salaried players had their short-lived dreams dashed. He returned to the job he left in 2007, at Sam’s Club.

“Going into this, I busted my heart out,” Rodriguez said recently. “It felt like I put in all this energy to build something big. I felt like everything I built up was gone.”

For years, video gamers sharpened their skills for fun wherever they could find competition — in basements, dorm rooms and even big-box stores. Companies recognized the potential of marketing products to this vast informal community, and a sport began to grow.

Tournaments were created and existing ones expanded. Events appeared on cable television and on the Internet. Leagues formed, and players received exclusive contracts.

But the recession has left only one significant competitive circuit in North America, Major League Gaming.

“We have driven everybody else out of the business,” Matthew Bromberg, the league’s president and chief executive, said in a recent interview at his office in Manhattan. “The history of league sports begins with one league.”

Bromberg said Major League Gaming had not lost any sponsors and would turn its first profit this year. Since 2006, he said, the company has raised $42.5 million in venture capital. The 2009 season begins this weekend at the Meadowlands Exposition Center in Secaucus, N.J.

Professional gaming is divided between two distinct segments: personal-computer gaming and console gaming, which is played principally on the Xbox 360. Major League Gaming features Halo 3, a first-person shooting game.

Personal-computer gaming tournaments and sponsorships have been hit particularly hard by the recession.

“It’s kind of like someone hit the reboot button on gaming,” said Craig Levine, a 25-year-old who formed a team as an undergraduate at New York University in 2002.

The current landscape resembles the one he entered, with few endorsements and little prize money. His group, Team 3D, is credited with becoming North America’s first professional gaming team. Levine managed the team until May 2007, when he sold it to the Championship Gaming Series. The team played the seminal computer game Counter-Strike, in which five-person teams fight as terrorists and nonterrorists.

Levine helped develop a model in which independent players could sign with a team, then compete around the world and online. Success garnered sponsorships, in part to cover travel expenses and entry fees. He said that top players could earn from $50,000 to $60,000 a year in winnings and endorsements.

Rodriguez began playing in this fragmented circuit. He graduated from high school in 2003 and soon after he focused on Dead or Alive, entering online tournaments and small live events.

“I was spending between $200 to $400 to go somewhere to win $200 to $400,” he said, laughing. “Personally, I wanted to see how far I could go. I didn’t play for the money.”

By 2007, he had won several major tournaments. Big money and stability arrived for him and others with the Championship Gaming Series, playing Counter-Strike, Dead or Alive and other games. The league held a draft, established franchises and opened a competition in which players chased $1 million in prize money during the playoffs.

In 2006, Major League Gaming was the first to offer contracts to top players. The Championship Gaming Series did the same, and there was a rush to sign the best gamers.

The Championship Gaming Series began with a five-year plan, but it was shut down after two. DirecTV officials who ran the league declined to comment for this article.

If fewer opportunities are available worldwide, that has not stopped young gamers who play Halo 3. Nearly six million copies of the game have been sold since its release in September 2007, according to the market research firm NPD Group.

Justin Brown, 18, is one such gamer. In Major League Gaming, he plays on a four-person team he started with his twin, Jason. As high school seniors last year, they each won $30,000 at tournaments. They have been playing Halo since they were 13.

“On the weekends, we would play for 12 hours straight, only taking breaks to eat and sleep,” Justin Brown said. “That was the greatest time of my life then.”

Within a few years, the brothers were unbeatable in tournaments online and around their hometown, Urbana, Ill. At one tournament, held at a local theater, they won movie tickets.

The stakes quickly grew. At 16, they paid their way into a Major League Gaming event and finished fourth. A year later, they finished second in the league’s championship. College will have to wait as they pursue gaming careers.

“I never expected to make money off of it,” Brown said. “Thinking about it, it’s just amazing. We are a small class of people who are able to do this.”

In 2008, three players in Major League Gaming earned more than $75,000, and three others had six-figure salaries, largely from endorsements. Justin and Jason Brown are well on their way; Old Spice recently decided to sponsor their team.

Major League Gaming shows events live on its Web site and operates GameBattles.com, a site used by more than a million players, mostly amateurs. A narrow but defined path remains for those who want to become pros.

Rodriguez was a pro, and he still has few challengers in Dead or Alive 4. For now, though, his game is without a league. He plans to host his own tournament this spring in Dallas. He has also taken up a new game, Street Fighter 4.

Rodriguez said his mother and sister recently asked him if he might consider college or seeking a higher position at work. He told them he intended to give this quest one more shot.

“I still believe in gaming,” he said. “I wouldn’t be able to live with myself if I just gave it up.”
twincannon
Profile Joined December 2008
United States31 Posts
April 02 2009 13:59 GMT
#2
What an obnoxious headline and picture to go along with it.
Jibba
Profile Blog Joined October 2007
United States22883 Posts
April 02 2009 14:00 GMT
#3
It was kind of a shitty article and they needed a lot more input from Torbull. CGS's failure was largely independent of the economic recession and I'm not sure what to make of MLG right now. The article doesn't really connect MLG to the recession at all.

The real tournaments that have been hit are the small, local events and LAN centers where people first get into competitive gaming. Places like LANferno, which used to be a major tourney spot on the east coast, are closing because lan centers have a difficult economic model in good times and a suicidal one in bad times.
ModeratorNow I'm distant, dark in this anthrobeat
Smorrie
Profile Blog Joined September 2002
Netherlands2942 Posts
April 02 2009 14:05 GMT
#4
I don't think it's that bad.. not for SC2 at least. A lot of companies have cut into, or given up on sponsorships for a lot other sports at this moment. Just because of the hype/shock/whatever...

The entertainment business is one of the branches that is hardly affected by the recession. The video game industry has been a fast growing market for the last couple years and will keep on growing. Because of the recession people actually invest more into 'low cost entertainment,' since it's relatively a lot cheaper to have a good time compared to other things. It doesn't go unnoticed. The more popular it gets, the more opportunities will arise for companies to make money out of it.

Looking at how SC2 probably won't be released until Q4 of this year I really don't think there's much to fear at all. There isn't going to be a pro-scene for SC2 right away anyways.. It will probably take a while before any big leagues are set up. By the time the game has matured far enough for big leagues to be set up, there will be enough sponsors. Compared to other 'real' sports, sponsorships for video games are just a minor expense anyways.
It has a strong technique, but it lacks oo.
FakeSteve[TPR]
Profile Blog Joined July 2003
Valhalla18444 Posts
April 02 2009 14:11 GMT
#5
lol

no mention of the fact that there's no mass market appeal whatsoever for games like dead or alive

the economy isn't what killed this guy's career, if the people paying him had any long-term sense he wouldn't have gotten anything to begin with
Moderatormy tatsu loops r fuckin nice
yooh
Profile Joined March 2009
China223 Posts
April 02 2009 14:13 GMT
#6
that... really sucks.
CursOr
Profile Blog Joined January 2009
United States6335 Posts
April 02 2009 14:16 GMT
#7
wtf real jobs.
shitty journalists for NYT need to find real jobs.
CJ forever (-_-(-_-(-_-(-_-)-_-)-_-)-_-)
Jibba
Profile Blog Joined October 2007
United States22883 Posts
April 02 2009 14:18 GMT
#8
I think the recession will definitely trickle down into competitive gaming. Consumers are still willing to buy games and I expect SC2 to sell extremely well, but tournament entry fees don't account for most of the prize winnings at tournaments - that comes from sponsors, and that's where salaries come from (not winnings.) Intel has gotten killed since August, Nvidia since June and AMD/ATI has done better, but they're still down like everyone else.

Blizzard will still make a ton of money off its games, but the ancillary parts of competitive gaming are weakened and probably don't have the $$$ to support SC2 the way they've supported other games in the US. Hopefully Blizzard picks up some of the slack.
ModeratorNow I'm distant, dark in this anthrobeat
p4NDemik
Profile Blog Joined January 2008
United States13896 Posts
April 02 2009 14:51 GMT
#9
But the recession has left only one significant competitive circuit in North America, Major League Gaming.

“We have driven everybody else out of the business,” Matthew Bromberg, the league’s president and chief executive, said in a recent interview at his office in Manhattan. “The history of league sports begins with one league.”

hahahaha MLG is kidding themselves if they think they're going to be the end-all be-all of competitive gaming in the U.S.
Moderator
Excalibur_Z
Profile Joined October 2002
United States12249 Posts
April 02 2009 15:29 GMT
#10
I think a lot of people are forgetting or ignoring that the real source of the economic recovery in Korea with regards to Starcraft was government subsidies. By officially supporting the game through government channels, they were able to make a lot of money off it and increase popularity to the point of becoming mainstream. For SC2 to be as comparatively popular as SC was in Korea, it would need some kind of megaconglomerate (or the government itself) to instill national interest, sort of like what Microsoft did for Halo.
Moderator
Zurles
Profile Joined February 2009
United Kingdom1659 Posts
April 02 2009 19:31 GMT
#11
such an ignorant article lol, i love how they assume they know what they're talking about.
Gumbo
Profile Joined February 2009
Canada807 Posts
April 02 2009 20:49 GMT
#12
Dead or Alive 4? Right know, if you wanna make money, its Starcraft or Halo 3.
Si vis pacem, para bellum.
chobopeon
Profile Blog Joined May 2003
United States7342 Posts
April 02 2009 21:40 GMT
#13
On April 03 2009 05:49 Gumbo wrote:
Dead or Alive 4? Right know, if you wanna make money, its Starcraft or Halo 3.


who is making money off of SC? serious question. is there anyone outside of Korea that is making even a minimal percentage of their living off of the game?
:O
sixghost
Profile Blog Joined November 2007
United States2096 Posts
April 02 2009 21:40 GMT
#14
On April 02 2009 23:51 p4NDemik wrote:
Show nested quote +
But the recession has left only one significant competitive circuit in North America, Major League Gaming.

“We have driven everybody else out of the business,” Matthew Bromberg, the league’s president and chief executive, said in a recent interview at his office in Manhattan. “The history of league sports begins with one league.”

hahahaha MLG is kidding themselves if they think they're going to be the end-all be-all of competitive gaming in the U.S.

They wont have to worry too much about it if their competition continues to be run by retards.
mG.sixghost @ iCCup || One ling, two ling, three ling, four... Camp four gas, then ultra-whore . -Saracen
tec27
Profile Blog Joined June 2004
United States3702 Posts
April 02 2009 21:54 GMT
#15
On April 02 2009 23:16 cUrsOr wrote:
wtf real jobs.
shitty journalists for NYT need to find real jobs.

Don't worry, they'll have to soon enough
Can you jam with the console cowboys in cyberspace?
Bill307
Profile Blog Joined October 2002
Canada9103 Posts
April 02 2009 22:12 GMT
#16
Oh, it's just a DoA4 player. Nothing to see here.

Even though we're in a recession, people are still gonna buy games. The catch is that they'll buy fewer games, which means they'll probably become more selective. Therefore, I expect unremarkable and craptacular games to suffer far, far more than bigger games like SC2 that are actually worth people's money to buy.
armed_
Profile Joined November 2008
Canada443 Posts
April 02 2009 22:43 GMT
#17
I wish someone would force journalists who write blatantly ignorant and biased articles to find actual jobs. ;<
On April 03 2009 07:12 Bill307 wrote:
Even though we're in a recession, people are still gonna buy games. The catch is that they'll buy fewer games, which means they'll probably become more selective. Therefore, I expect unremarkable and craptacular games to suffer far, far more than bigger games like SC2 that are actually worth people's money to buy.

Yeah, but the vast majority of game sales have really little or nothing to do with serious competitive gaming.
Faronel
Profile Blog Joined July 2008
United States658 Posts
April 03 2009 03:42 GMT
#18


Tournaments were created and existing ones expanded. Events appeared on cable television

wtf where?
C'est la vie...
Jibba
Profile Blog Joined October 2007
United States22883 Posts
Last Edited: 2009-04-03 03:48:10
April 03 2009 03:47 GMT
#19
CBS showed a few tourneys, and DirecTV covered all of CGS.

http://www.nytimes.com/2007/07/28/arts/television/28vide.html
ModeratorNow I'm distant, dark in this anthrobeat
nvnplatypus
Profile Blog Joined April 2004
Netherlands1300 Posts
Last Edited: 2009-04-03 04:02:39
April 03 2009 04:00 GMT
#20
I've had the chance to really see & understand pro-gaming from all the different perspectives: players, league organizers, sponsors, media, and game developers.

If there's one short lesson I've taken away from this: pro-gaming will never work with a top-down approach in the long run.

The only events and formats that are viable over a longer period are those that are rock-solid at a grass roots level. Things like TSL, WC3L, Garena, etc. I don't think WCG is viable, btw.

I'm pretty jaded and wouldn't really care if eSports just faded away as a passing fad. But that said, good luck to the many smart & motivated people all around the world still trying to make this happen.
vx70GTOJudgexv
Profile Blog Joined November 2008
United States3161 Posts
April 03 2009 04:08 GMT
#21
On April 03 2009 05:49 Gumbo wrote:
Dead or Alive 4? Right know, if you wanna make money, its Starcraft or Halo 3.


Wait what?

Right now next to no-one outside of Korea is making money off of StarCraft, and even Halo 3 is sketchy at best. As far as I know (correct me if I'm wrong), MLG is the only major paying Halo 3 tournament. In my opinion, Counter-Strike is the biggest money maker out of all of them, with the many leagues that are offered that have a cash payout.
(-_-) BW for ever. #1 Iris fan.
Bill307
Profile Blog Joined October 2002
Canada9103 Posts
Last Edited: 2009-04-03 07:41:03
April 03 2009 07:39 GMT
#22
On April 02 2009 23:18 Jibba wrote:
I think the recession will definitely trickle down into competitive gaming. Consumers are still willing to buy games and I expect SC2 to sell extremely well, but tournament entry fees don't account for most of the prize winnings at tournaments - that comes from sponsors, and that's where salaries come from (not winnings.) Intel has gotten killed since August, Nvidia since June and AMD/ATI has done better, but they're still down like everyone else.

That's funny to read.

At almost every North American fighting game tournament worth mentioning, the prize money consists solely of the entry fees (usually $5 to $10 per person). The venue is also paid for by the players via an additional venue fee (usually $10), with any extra money going towards the prizes.

Obviously you can't make a living off of it, but that doesn't mean it's not competitive gaming. Players will travel across state lines and even across the continent to enter these tournaments. You can't tell me these people aren't hardcore competitive gamers.


Why do these fighting game players travel to tournaments that don't have any sponsorship? Well, for one thing, most of these players (excluding Smash Bros.) are adults: they either have jobs, or are in college studying towards one. They aren't trying to play games for a living. Another reason is that most of these players go to meet their friends: fellow players living in different states, whom they see only a couple of times per year.

From this perspective, the idea that tournaments need to be sponsored is ridiculous. It's actually quite sad that people think the sole reason to travel to a tournament is to win big money.
nvnplatypus
Profile Blog Joined April 2004
Netherlands1300 Posts
Last Edited: 2009-04-03 08:13:12
April 03 2009 08:11 GMT
#23
On April 03 2009 16:39 Bill307 wrote:
From this perspective, the idea that tournaments need to be sponsored is ridiculous. It's actually quite sad that people think the sole reason to travel to a tournament is to win big money.


This, btw, is precisely why I'm jaded towards eSports. The few years I gamed competitively were 1996-1998 in Quake 1, before pro tournaments caught on. Rather than legitimizing and improving the experience of participating in that community, the vast majority of eSports have moved away from the fun factor and tried to create other selling-points like the "star factor" of the top players.Maybe I'm a luddite, but that doesn't work for me.

SC in Korea is actually a nice exception in that it's a top-down approach that is working.

FakeSteve[TPR]
Profile Blog Joined July 2003
Valhalla18444 Posts
Last Edited: 2009-04-03 08:55:49
April 03 2009 08:50 GMT
#24
On April 03 2009 17:11 nvnplatypus wrote:
Show nested quote +
On April 03 2009 16:39 Bill307 wrote:
From this perspective, the idea that tournaments need to be sponsored is ridiculous. It's actually quite sad that people think the sole reason to travel to a tournament is to win big money.


This, btw, is precisely why I'm jaded towards eSports. The few years I gamed competitively were 1996-1998 in Quake 1, before pro tournaments caught on. Rather than legitimizing and improving the experience of participating in that community, the vast majority of eSports have moved away from the fun factor and tried to create other selling-points like the "star factor" of the top players.Maybe I'm a luddite, but that doesn't work for me.

SC in Korea is actually a nice exception in that it's a top-down approach that is working.



SC in korea works because it was built from the ground up by small-timers organizing tournaments in PC cafes. The entire scene was spawned and is sustained by its fanatical fanbase, which boils down to the game itself every single time. Trying to emulate that success without the appropriate foundation is a horrible idea, and is why CPL folded, why CGS folded, and why MLG will inevitably suffer the same fate.

SC2 is the only interesting prospect, but the game must be good enough to create that fanatical fanbase. It has an advantage in that it's StarCraft's sequel and a lot of the groundwork necessary is taken care of. All these other leagues are exactly like when SpikeTV tried to invent a new basketball; all the marketing in the world couldn't salvage that trainwreck. The entire idea of marketing "e-sports" as a whole is such a misguided approach, it's like all these people just don't care where their money goes.

There seems to be this idea that since StarCraft or whatever players are getting paid $x somewhere in the world, other people playing video games for a living are entitled to a similar amount. Too bad that's not how this stuff works. So many of the efforts being put forth seem to be very forced, blatant attempts to cash in on a fad. Makes me shake my fucking head.
Moderatormy tatsu loops r fuckin nice
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