Yahoo Finance How Important Is the eSports Business for Activision?
What's Driving Activision Blizzard's Growth?
Call of Duty partners with MLG
Activision (ATVI) is focusing on increasing user engagement with its eSports initiatives. Since the beginning of 2016, Activision has delivered millions of hours of audience engagement with its marquee eSports events. For Call of Duty, Activision concluded the stage one finals of the Call of Duty World League and is set to host the championship presented by PlayStation 4 (MSFT) where teams will compete for a prize pool of $3 million. Call of Duty has partnered with MLG (Major League Gaming), and they will produce their first event this summer.
Acquisition of MLG
Earlier this year, Activision Blizzard (ATVI) announced the acquisition of Major League Gaming (or MLG) for $46 million in cash. MLG is a leader in creating and streaming live gaming events and organizing professional competitions and competitive gaming leagues.
The acquisition will help Activision build what it calls a new ESPN of eSports and enter the business of streaming online eSports matches. According to MLG, its MLG.TV attracts approximately 25 million viewers per month on mobile devices, computers, and video game consoles.
In October 2015, Activision created a new eSports unit and hired MLG co-founder Mike Sepso and former Walt Disney (DIS) head Steve Bornstein.
In December 2015, Electronic Arts (EA) also announced that it wants to create an eSports unit. Live events attract a huge number of players and spectators. At these worldwide events, professional gamers can win millions of dollars in prizes.
According to SuperData Research, the total global eSports market is expected to be valued at $748 million at the end of 2015.
Revenues from Asia are expected to be $321 million in 2015. Revenues from North America and Europe (EFA) are expected to be $400 million. By 2018, the eSports market is projected to reach $1.9 billion, driven by the growth of direct revenue sources such as betting sites and tournament platforms.
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