As a math teacher, Julius Woehning can't ignore the numbers.
After climbing to 11th place out of 35,000 competitors in his fantasy sports league this Spring, the twenty-something German knew his chances of placing among the prize-winning top three were still slim. And even now that he's won the $50,000 grand prize, he's keeping his expectations modest for next season–mostly.
"I doubt I will win," Woehning told dot.LA, "but if my friends are playing next season, I definitely think I will beat them."
<p>The league that hosted Woehning's triumph was operated by Esports One, a venture-backed L.A-based startup that is staking its claim on the dynamic esports market by providing fans like Woehning a tech-enabled fantasy sports platform. It currently accommodates just one game, <em>League of Legends</em>, a hit multiplayer battle arena-style competition developed by L.A.'s Riot Games, but the startup plans to expand to another title by the end of this year.</p><p>Founder Matt Gunnin told dot.LA that he has over a decade of experience in esports. His recent entrepreneurial ventures have been built around computer vision technology that analyzes on-screen game activity to produce a robust flow of real-time gameplay data and statistics. Gunnin previously partnered with Twitch, a popular platform for watching esports, to provide viewers with analytics as they watched; and he has partnered with Riot Games to help in-game esports announcers spice up their commentary with data. </p><p>Recent forecasts for the esports market have proven overly optimistic. As media analyst Matthew Ball wrote in an essay last month, Newzoo, a gaming insights service, predicted in 2017 that esports would generate up to $2 billion by 2020 but has since reduced its forecast to just north of $1 billion. Morgan Stanley had a similar overly bullish view. In April, Newzoo further cut its 2020 forecast, citing setbacks due to cancelled live events from the coronavirus. However, the service raised its expected growth rate, assuming an enduring boost from the increased gameplay occurring amid the pandemic. </p><p>Esports One co-founder and Chief Operating Officer Sharon Winter is optimistic about the space, noting increased interest from major agencies in representing gamers, the entry of new brands as advertisers and partners, and the expansion by some classic fantasy sports operators into esports. </p><p>The numbers looked good for this past season which Woehning won. According to representatives from Esports One, Europe's professional <em>League of Legends </em>league reported this spring's playoffs saw a 71% growth in total hours watched compared to last spring's, and a 76% increase in peak viewership.</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<a href="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzEyMTYzNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0Njc3ODM3OH0.ZjlF8K4ijMaANZuVR8A_6boj9b8AUG1RMv7F_T8T4kU/img.jpg?width=980" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzEyMTYzNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0Njc3ODM3OH0.ZjlF8K4ijMaANZuVR8A_6boj9b8AUG1RMv7F_T8T4kU/img.jpg?width=980" id="cacfb" class="rm-shortcode" data-rm-shortcode-id="2b2359b2fa2e9bb33995f9908107b8da" data-rm-shortcode-name="rebelmouse-image" /></a>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Riot Games Acquires Gaming Studio Hypixel</small>
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live.staticflickr.com
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</p><h2>A sport by any other name...<br/></h2><p>In some ways, fantasy esports is just like any fantasy sport. Esports One competitors have a weekly budget for bidding on players for each week's games; the real-world players are assigned a dollar-value based on Esports One's data-rich algorithms. As the gamers accumulate stats – kills, assists, achieving objectives, etc. – those are reflected in the fantasy gamers' lineups. </p><p>Woehning explained that playing fantasy esports makes watching matches more exciting, especially when his favorite team isn't playing – a sentiment many fantasy football players will recognize (anyone up for Lions-Browns?). Jason Halsey, another Esports One competitor, from England, says that just like in traditional sports, esports are filled with exciting moments, intriguing matchups and upsets. </p><p>Esports differs from traditional sports, however, in some crucial ways. As Ball described, a developer like Riot Games <em>owns</em> League of Legends, whereas nobody owns basketball or football. This skews power dynamics away from third-party esports companies and toward the game developers. But Gunnin and Winter emphasize they've built Esports One to work in partnership with game developers, yet without being captive to their centralized power. </p><p>Another way that esports differs from regular sports, Gunnin says, is that viewers can more easily see themselves doing what the professionals do. "But if you can't slam dunk, you're out of luck," he explained. As a result, Gunnin said Esports One strives to make its fantasy gameplay more like playing the game itself. </p><p>The startup's founders also highlight esports' somewhat "cliquey" nature, and how they accordingly aim to cater their platform toward upholding a sense of camaraderie. Halsey, the British gamer, praised the platform's responsiveness to user input. </p><p>Esports One has raised about $4 million to date. In the future the league will remain free to access, according to the company, but it plans to grow its revenue streams into premium subscriptions and event passes. Beyond expanding into another game title, the company also hopes to move beyond Europe and North America into other regions. </p><p>Los Angeles seems a good home base from which to do so. Two major studios, Activision Blizzard and Riot Games, are based here. And Kevin Rosenblatt of ESL Gaming, an international esports firm specializing in live events with an office in Burbank, told dot.LA that the region has become a "mecca" for esports, thanks to its history of production expertise, a rich ecosystem of firms and brands, and a talented labor pool. </p><p>As Esports One's summer season approaches, Woehning still hasn't decided what he will do with his spring winnings. The math teacher evidently understands compound interest and has plans to save it.</p><p>---</p><p><em>Sam Blake covers media and entertainment for dot.LA. Find him on Twitter @hisamblake and email him at samblake@dot.LA </em><br/></p>
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It's hard to believe that residents across vast areas of the U.S. are about to enter their third month of quarantine as a result of COVID-19. With millions of businesses forced into complete shutdown during these unprecedented times, there have been few, if any, positive outlooks for any industry.
But hidden amongst dispirited stories across hospitality, real estate, retail and many other markets, there are glimmers of hope for industries that this crisis may actually be a catalyst for. Gaming is undoubtedly one of the markets seeing an uplift during the pandemic.
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzIxMTQ0MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMDI4ODQwOX0.gx4lx2_kIIdPXyEPIqEg0lp4lJM29xyVIUV50gaMc1k/image.jpg?width=980" id="53005" class="rm-shortcode" data-rm-shortcode-id="d105248a4b5e8860f02c114f65a36e30" data-rm-shortcode-name="rebelmouse-image" />
Xinjie Ma is a co-founder of rct studio.
<p>According to Verizon, <a href="https://www.nasdaq.com/articles/stay-at-home-trend-boosts-video-games-sales%3A-etfs-to-gain-2020-04-23" target="_blank">video game internet traffic is up 75%</a>, while 95% of the country shelters at home. Meanwhile, Activision Blizzard, one of the gaming industry's largest holding companies, has seen its stock <a href="https://www.barrons.com/articles/activision-blizzard-stock-still-a-buy-one-analyst-explains-why-51587509435" target="_blank">go up around 10% so far in 2020</a>, while the S&P 500 has dropped around 15%.</p><p>Well over half of Americans are gamers and during this crisis, which is taking as much of a mental toll as a physical one, there is no better medium for escaping our current reality. However, the amount of time on consumers' hands is increasing their desire for experiences that extend beyond the status quo.</p><p>A <a href="https://rct-studio.com/blog/rct-studio-s-COVID-19-Quarantine-Entertainment-Habits-Survey" target="_blank">rct studio survey of 1,000 U.S. consumers</a> found that right around 1-in-3 people are bored of the same entertainment options during the quarantine and are searching out new virtual experiences as they shelter at home. In this sense, gaming will likely be the gateway during this crisis to new VR experiences. In doing so, it may finally bring VR mainstream. Here's three reasons why I think that will happen.</p>
<p>
<span style="background-color: initial; color: rgb(0, 0, 0); font-family: inherit; font-size: 24px; font-weight: 700;">Today's Needs Are Immersing Consumers in VR for the First Time</span><br/>
</p><p>
While the percentage of VR gamers continues to only hover in single-digit percentages, the crisis has shifted the use of VR technology from a nice-to-try to a need-to-have. Can't access your favorite gym? No worries, you can access a <a href="https://www.cnet.com/news/supernatural-vr-fitness-mashup-of-pelaton-and-beat-saber-oculus-quest/" target="_blank">better workout with your Oculus Quest</a>.
</p><p>
With movie theatres shuttered, theme parks closed and concert halls muted, it turns out VR is one of the few technologies that can keep the entertainment industry relevant in these trying times. Our own research shows that the use of AR and VR is up 49% during the pandemic. Additionally, the latest Steam data shows over <a href="https://www.windowscentral.com/monthly-steam-hardware-survey-revamp-shows-true-vr-market-size" target="_blank">one million active VR users</a> in March alone.
</p><p>
Through their headsets, consumers can embark on exhilarating journeys that may not even be possible in post-COVID-19 times. Whether it's <a href="https://www.nationalgeographic.com/travel/2020/04/can-virtual-reality-replace-real-tourism-during-pandemic-and-beyond/" target="_blank">taking in the sites at Machu Picchu</a> or diving into the action-packed survival horror game <em>Half-Life</em>, the relief experienced through VR right now from societal anxieties is enormous.
</p><p>
And for developers of VR headsets, supply is buckling under this unprecedented demand. Devices like the Oculus Quest — which retails between $399.99 and $499.99 — have become<a href="https://www.polygon.com/2020/4/13/21218930/coronavirus-quarantine-oculus-quest-prices-sold-out-facebook-vr" target="_blank"> virtually impossible to buy without paying a huge markup</a>. These prices will likely continue to rise the further the quarantine is extended and consumers' appetite for novel forms of entertainment grows.</p><p>If interacting with our physical communities continues to be a challenge as we respond to COVID-19, we shouldn't expect any of these VR gaming needs or demands to dwindle. More than 7 in 10 online gamers in the UK and U.S. have noted they feel part of a gaming community. Never has this community been as critical as consumers seek out some connection amid lockdown and separation.<br/></p><p>
New virtual landscapes will offer even more opportunities for connection that feels human. Next-generation VR environments are already being built with new ways for players to communicate and collectively alter storylines in real-time while they explore virtual worlds.
</p><h2>Technology is Finally Here to Build Lifelike Environments At Scale</h2><p>
The VR industry has already had numerous false starts. Many of these problems can be singularly traced back to not combining proper hardware with engaging content. Getting one right has proved difficult, succeeding with both has been impossible. Furthermore, the promise of immersive VR experiences is limitless choice and opportunity. A new world to escape within.
</p><p>
The problem with the first few generations of VR has been the restraints caused by the sloppy intersection of hardware and software. In a VR environment not too long ago, I walked into a wooden cabin during a summer afternoon in Austria. On the surface, the situation existed. However, if you stared at anything in the cabin for more than 10 seconds, you would start to feel its loss of reality. Not so different than slowly shaking out of a dream. Everything in the room, even the room itself, was modeled in such an inadequate way. The only way to accept the experience as reality was to believe that our world is now only seen in 960X1080.
</p><p>
Fortunately, we're at a point where artificial intelligence advancements can address these issues. Deep and reinforcement learning can lessen the budgets and lengthy timeframes needed for developing vast virtual environments, while also solving limitations of pre-mapped narrative paths that existed in first-generation VR. We can even render these environments in real-time without needing to rewrite any code. Just a few lines of text will do.
</p><p>
While gaming and VR companies have utilized AI in the past to improve gaming, we're just getting to a point where we can train machine learning models to make a sequence of decisions that result in narrative-driven AI. Imagine a not-too-distant VR world where there is no need to script every alternative for each scene in advance. Once the main storylines, character descriptions, motivations, and parameters are mapped, AI can create a seemingly endless number of experiences. And unlike the gaming environments today, every non-player character is powered by its own AI model. VR players can essentially enter into their own Westworld.</p><p class="shortcode-media shortcode-media-rebelmouse-proxy-image">
<a href="https://upload.wikimedia.org/wikipedia/commons/7/7f/HoloLens_2.jpeg" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vbWVkaWEucmJsLm1zL2ltYWdlP3U9JTJGd2lraXBlZGlhJTJGY29tbW9ucyUyRjclMkY3ZiUyRkhvbG9MZW5zXzIuanBlZyZobz1odHRwcyUzQSUyRiUyRnVwbG9hZC53aWtpbWVkaWEub3JnJnM9NTA2Jmg9ZDc3NzVhMzI5NDcwYjJlNTRmOWRjY2ViMzdjY2YyNTMzYzI0ODI3NTE0MzZlMTliZWIyMTE5ZGRlZjU4MmViYyZzaXplPTk4MHgmYz0zMzg4NzAzNzIiLCJleHBpcmVzX2F0IjoxNjM2NTEyODg0fQ.AmmjpljOCpw9AaxqDGYZJNOXSJeXg3dSIddrY0ve1ss/img.jpg" id="c6987" class="rm-shortcode" data-rm-shortcode-id="6a17a5a0ddb8ba9ef27bbf494dce239c" /></a>
<small class="image-media media-caption" placeholder="Add Photo Caption...">Microsoft has been gaining ground with Hololens and AR for the business world.</small>
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<a href="https://upload.wikimedia.org/wikipedia/commons/7/7f/HoloLens_2.jpeg" target="_blank">upload.wikimedia.org</a>
</small>
</p><p><br/></p><h2>FAANG Shows An Increasing Appetite for VR & AR</h2><p>
As they do in almost all aspects of the technology sector, Facebook, Amazon, Apple, Netflix and Google have veto power when it comes to allowing VR to go mainstream given their chokehold on distribution. For much of the past decade, Apple and Google have been resistant to adopting usages of this technology.
</p><p>
Meanwhile Facebook and Microsoft, if we add the sixth biggest player in technology into the mix, have shown the most interest in becoming leaders in the fledgling market. Facebook, of course, is through its efforts with Oculus. Microsoft, on the other hand, has made the most ground with Hololens and AR for the business world.
</p><p>
However, the two perceived leaders in big tech are beginning to see company in VR and that is likely to increase as the crisis spotlights consumer desire for VR experiences. In April, amidst the growing pandemic, Apple has been rumored to be finalizing a deal to acquire NextVR, a virtual-reality video-streaming service for around $100M. Prior to that, <a href="https://www.macrumors.com/2020/03/26/apple-ar-vr-headset-controller/" target="_blank">details leaked in March</a>, of a controller for an AR/VR headset that Apple may have in the works.
</p><p>
Netflix, the global leader in streaming content into the homes of Americans, has also started to pick up its interest in VR. Its <a href="https://www.oculus.com/experiences/go/890562797701371/?locale=en_US" target="_blank">app on the Oculus store</a>, which allows Netflix users to watch certain content in VR. Likewise, Amazon has made VR content available for its Prime Video users with <a href="https://www.amazon.com/adlp/primevideovr" target="_blank">apps available</a> for Oculus and Samsung's Gear VR.
</p><p>
So while Facebook has been carrying the baton for VR over the last few years it has begun to wake up the rest of the major players to virtual possibilities. While the current market downturn may force some of these companies to refocus on core businesses for the short-term, there's little doubt that these leaders also see the opportunity for VR in the new normal that awaits us on the other side of the crisis. If they all jump in the water, the VR floodgates will open.
</p><p>
<em><strong>Xinjie Ma</strong> is a co-founder of <a href="https://rct-studio.com/" target="_blank">rct studio</a>, a next-generation interactive entertainment company harnessing the latest in AI to offer immersive VR experiences. She jointly founded rct studio with other former members of the Raven Tech team, which was acquired by Baidu in 2017. </em>
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Coronavirus Updates: Lockdowns Accelerate Activision Earnings; Tom Cruise Teams Up With Elon Musk
May 05 2020
Here are the latest headlines regarding how the novel coronavirus is impacting the Los Angeles startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for the latest updates.
- Activision trounces earnings expectations as world turns to video games amid lockdown
- Tom Cruise, Elon Musk: There's no coronavirus restrictions filming in space
<ul class="ee-ul"></ul>
Activision trounces earnings expectations as world turns to video games amid lockdown
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzIyMjI4NC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0NjA3ODI4N30.8EN3ZcCd7GvtLL3FkpTu_5ltDZJ-jzBRQPxzkZb5Sm8/image.jpg?width=980" id="f4cd2" class="rm-shortcode" data-rm-shortcode-id="abbb8d9dd5bddb5f82633c3b334011a5" data-rm-shortcode-name="rebelmouse-image" /> <p>Activision Blizzard, the video game juggernaut behind the <em>Call of Duty</em> franchise, reported first-quarter earnings that sailed past expectations. It wasn't totally unexpected, given the effects the coronavirus lockdown has had on everything from video game publishers to streaming services. The Santa Monica-based company posted earnings of 65 cents a share on revenue of $1.8 billion. Shares soared 5% in after-hours trading.</p><hr><p>"Our goal to connect the world through epic entertainment is more important to our players than ever before," said Chief Executive Bobby Kotick in a statement. "We delivered strong financial results for the first quarter, and are raising our full-year outlook. I have been awestruck by the strength of our employees and their families during this difficult time."</p><p>Kotick also raised the company's full-year outlook, pinning the robust earnings prediction on an increase in video game downloads and purchases. The surge in video gaming comes amid a dearth of options for Americans looking for entertainment with theaters shuttered and restaurants/bars still a long way off from re-opening. </p>Tom Cruise, Elon Musk: There's no coronavirus restrictions filming in space
<img lazy-loadable="true" src="https://dot.la/media-library/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzIyNTAxNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYwMDQ4OTQ4OH0.SoW3gAmK_PYjxRFjW2WhTjemHFyX4DjHnk4JZ2JVxRU/image.jpg?width=980" id="87627" class="rm-shortcode" data-rm-shortcode-id="bf85bb61c1c0073674827b4fa64c8c55" data-rm-shortcode-name="rebelmouse-image" /> <p>Hollywood is having some issues with how to film blockbusters in the U.S. with the coronavirus shutting down productions. Tom Cruise, who has done most of his own stunts, has an idea. Go to space.</p><p>The actor is partnering with NASA to make his next action movie shot on board the National Space Station, <a href="https://deadline.com/2020/05/tom-cruise-movie-shot-in-outer-space-elon-musk-spacex-unprecedented-in-hollywood-1202925849/" target="_blank">according to Deadline Hollywood. </a>The Hollywood trade reported that Cruise and Elon Musk's SpaceX were in the early stages of teaming up with the U.S. space agency for an action-adventure feature film that would be shot in outer space. No word on the plot yet. "NASA is excited to work with @TomCruise on a film aboard the @Space_Station," NASA administrator Jim Bridentsine tweeted on Tuesday. "We need popular media to inspire a new generation of engineers and scientists to make @NASA's ambitious plans a reality."</p>From Your Site Articles
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