If it seemed like everyone and their mother took up gaming this year, that may be because playing became far more popular as social media transforms the industry.
Nearly all games allow for multiple players to interact inside the game, but this year as the pandemic kept people at home, game worlds further converged with social media. Gamers used livestreaming platforms like Twitch and Discord to connect as they play.
<p>Meanwhile social media companies like Facebook boosted their gaming platforms and Snap supersized its gaming effort with Bitmoji Paint, which it <a href="https://dot.la/bitmoji-paint-snaps-latest-game-allows-millions-of-users-to-play-2649482261.html" target="_self">released in December</a>. </p><p>Nintendo's "Animal Crossing: New Horizons" was embraced by politicians, with both congresswoman Alexandria Ocasio-Cortez and president-elect Joe Biden creating neighborhoods and encouraging their constituents to come pay them a virtual campaign trail visit. </p><p>It all meant a push toward a more social game. </p><p>And it was in a year that players spent big on their favorite titles - in November alone, digital games earned $11.5 billion, the highest monthly revenue ever recorded by <a href="https://www.superdataresearch.com/blog/worldwide-digital-games-market" rel="noopener noreferrer" target="_blank">Nieslen's SuperData</a>.</p><p>Global gaming revenue smashed records with sales estimated to reach $174.9 billion by the end of this year, up roughly 20% from last year, NewZoo games analyst Tom Wijman <a href="https://newzoo.com/insights/articles/game-engagement-during-covid-pandemic-adds-15-billion-to-global-games-market-revenue-forecast/" rel="noopener noreferrer" target="_blank">wrote in a recent report</a>. NewZoo predicts that by the end of 2021, roughly <a href="https://newzoo.com/insights/articles/newzoos-games-trends-to-watch-in-2021/" rel="noopener noreferrer" target="_blank">2.8 billion people will be gaming</a> worldwide.</p><p>Social media plays a crucial role in how well a game is received, and it hugely influenced which games took off this year. "Among Us" is a two-year-old game, but when streamers started broadcasting matches <a href="https://www.pcgamer.com/how-among-us-became-so-popular/" rel="noopener noreferrer" target="_blank">in early April</a>, it quickly attracted new players. </p><p>Similarly, popular game streamers broadcasting Santa Monica-based Activision Blizzard's "Call of Duty: Warzone" game helped the game go viral and jumpstarted adoption of its newest title, "Black Ops Cold War," which was the top-selling console game in November with 5.7 million copies sold. </p><p>Adoption of multiplayer games and content is expected to keep rising, prompting startups including Playa Vista-based VENN to capitalize on a market ravenous for group entertainment. </p><p><a data-linked-post="2646889513" href="https://dot.la/venns-quest-to-be-the-mtv-of-the-gaming-generation-starts-today-2646889513.html" target="_blank">VENN's network of gamer-friendly television</a> is now expanding to smart TVs (it recently struck deals with Roku and Samsung) and existing social networks like YouTube, said Jimmy Wong, producer and co-host of VENN's talk show "The Download." </p><p>"Our view of the pandemic is one of someone dousing an already lit flame with lighter fluid," Wong said. "It's a step towards a wider acceptance of video gaming as being one of the most popular things for people to do."</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<a href="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzNTA5MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1NjY4NDUwNH0.1IYjZA15lzlZSk5_LdjOP6_ywFDl0b3Aab0CLU8B2QM/img.jpg?width=980" target="_blank"><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzUzNTA5MC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1NjY4NDUwNH0.1IYjZA15lzlZSk5_LdjOP6_ywFDl0b3Aab0CLU8B2QM/img.jpg?width=980" id="945ea" class="rm-shortcode" data-rm-shortcode-id="924d68e20b6f07a54d655d7886aea9bf" data-rm-shortcode-name="rebelmouse-image" alt="VENN Gaming" /></a>
</p><p>In October roughly 931,000 people engaged with Santa Monica-based Riot Games' "League of Legends" page on Reddit, according to <a href="https://newzoo.com/insights/articles/octobers-most-active-game-communities-on-reddit-league-of-legends-narrowly-overtakes-genshin-impact-for-1/" target="_blank">NewZoo's report</a> on the most active gaming communities.<br/></p><p>Ocasio-Cortez broke Twitch records streaming "Among Us," in November, when she linked up with several famous streamers for a live broadcast that reached over 400,000 people.</p><p>Social media not only expands the reach of a multiplayer game, but also its lifespan -- "League of Legends" is over a decade old, and Activision's "Call of Duty" franchise launched in 2003. "Among Us" came out in 2018, but it made $3.2 million in digital revenue this year and passed half a billion downloads in December.</p><p>"There's now so much evergreen video content surrounding these games which has made the lifespan and reach so much greater," said Ryan Horrigan(cq), CEO of West Hollywood-based <a href="https://dot.la/artie-2647773915.html" target="_self">Artie</a>, a startup that designs multiplayer cloud-based browser games and will launch in 2021. "I do think gaming is becoming the next social network." </p><p>Social media and streaming drives players back to games but it's also a lucrative ad opportunity. "The world of gaming is permeating well beyond even the notion of a game," Horrigan noted, and lately includes film and TV adaptations of hit titles. </p><p>Scopely, a Culver-City based mobile publisher, both makes and acquires multiplayer games. "Marvel Strike Force," which it <a href="https://www.marvelstrikeforce.com/en/updates/foxnext-games-la-and-marvel-strike-force-to-join-scopely" target="_blank">bought from Walt Disney Co. in January</a>, is its biggest earner. "We will close the year above $900 million in revenue, nearly double the revenue of 2019," Scopely's head of strategic partnerships Mike DeLaet told dot.LA. </p><p>Tim Richards, vice president of publishing at Calabasas-based <a href="https://dot.la/la-liga-greenpark-sports-2649521796.html" target="_self">GreenPark Sports</a>, is designing a virtual space for sports and esports fans to hang out and play that will launch in January. "We designed the idea around this data that 90% of Gen Z classify themselves as gamers," Richards said. He noted that even hardcore sports fans like virtual viewing -- "Even back in (pre-pandemic) days, very few folks went to every sports game." </p><p>Analysts agree gaming is now a more essential form of social entertainment than ever before and it will continue to grow in audience next year, as will streaming and virtual events that take place inside live games. </p><p>"Multiplayer games would have grown in popularity regardless of COVID-19," said Carter Rogers, principal analyst at SuperData. "This growth is sustainable, and we aren't likely to see any sort of video game 'crash' after most people are vaccinated. People are forming long-term habits as they play online games, many for the first time."</p><p><em>Correction: An earlier version of this piece mis-identified Tim Richards, GreenPark Sports' vice president of publishing.</em></p>
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Santa Monica-based PlayVS, a platform that organizes high school esports leagues, raised $10.5 million, SEC filings show.
The injection of money comes just as PlayVS is making a push to expand across all 50 states and diversify their offerings. The two-year old company raised $50 million this summer and with the most recent round, the company's total funding jumped over $100 million.
<p>PlayVS declined to comment on the raise, but a spokeswoman for the company said it's "currently focused on growing its business, partnering with schools and continuing to strengthen its mission."</p><p>PlayVS partners with the National Federation of State High School Associations and 23 state associations, where it's recognized as a varsity sport. Students can play competitive team games like Rocket League, a game in which a player drives a car to play soccer, to earn a varsity letter and compete for state championships.</p><p>Over 21,000 schools and 143,000 students have registered so far. Like with varsity sports, a faculty member is required to supervise. Students register online under their school team, to compete in two seasons during the academic year, aligned with fall and spring sporting seasons. The cost is $63 for each participating student, $1,024 for 16 players per season.</p><p>The platform has seen interest rise as COVID keeps school-aged children at home.<br/></p><p>Over the summer, PlayVS added Overwatch to their available games, partnering with the game publisher Activision Blizzard for the first time. The company also partnered with Riot Games and Epic Games, and students can compete in League of Legends or Fortnite.</p>The esports industry <a href="https://dot.la/esports-industry-news-2647149204.html" target="_self">was valued at over $1 billion last year</a>, and is <a href="https://dot.la/future-of-gaming-2648622366.html?utm_campaign=post-teaser&utm_content=hatsraky" target="_self">expected to grow</a> 24% annually from 2020 to 2027.
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- As school gets back in session, the pandemic has limited the number of available extracurricular activities
- PlayVS, which helps schools compete in esports leagues, expects participation this year to double or triple, due at least in part to COVID
- Not all schools view esports the same way, and many are still considering the pros and cons
Under normal circumstances, going back to school is not just the start of a new academic year, but the renewal of extracurricular activities, whether on the debate stage or under the Friday night lights. This year, however, the pandemic has made gridiron glory and other activities nearly impossible. Could that lead to a banner year for high school esports?
<p>
Santa Monica-based PlayVS (pronounced "play versus"), which provides the technological and organizational infrastructure for high school esports leagues, thinks so.
</p><p>
"We're expecting 2-3 times the number of students that competed last year," said Clint Kennedy, PlayVS' director of education. "I think COVID is a chief driver."
</p><h2>A COVID Boost
</h2><p>
Kennedy said 90% of U.S. high schools with a football program already use PlayVS or are on the waiting list. The company has an exclusive partnership with the National Federation of State High School Associations (NFHS), the main governing body of American high school sports. The relationship effectively turns esports via PlayVS into a fully fledged varsity sport at participating schools.
</p><p>
Founded in early 2018, PlayVS employs 46 people and has raised $96 million. In addition to having relationships with key educational institutions, it also has partnerships with major game publishers such as Riot and Epic Games.
</p><p>
Competing schools pay $63 per participating student. To accommodate increased demand the company will be rolling out a tiered pricing model this school year, including free scrimmage-only play on one end and a premium level at the other that allows schools to sign up more students.
</p><p>
"Schools are saying 'our teams are growing,'" said Kennedy, "so we've added this other layer to accommodate that growth."
</p><p>
Allen Whitten, principal at Sunny Hills High School, which has won two straight California Interscholastic Federation (CIF) esports state championships, said esports is "the one thing we haven't had to cancel, because they can do it from home." His school's esports coaches, Myra Deister and Sonya Joyce, expect student participation this year to double.
</p><p>
A spokesperson from L.A. Unified School District (LAUSD) said, "we expect interest in this extracurricular activity to expand during the pandemic."
</p><p>
Kennedy added that when COVID arrived this past spring, PlayVS "saw an uptick in our overall registrants" and that he has since seen increased interest from school administrators.
</p><p>
"Esports is in a unique spot to provide opportunities in a pandemic world," he said.
</p><p class="shortcode-media shortcode-media-rebelmouse-image">
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzU3MTIzMy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxODg2OTMxOX0.uVtWcp3syyDKzC5fSNSW_6iNjGLSaAuTLnr0WPu85Q0/img.jpg?width=980" id="4320d" class="rm-shortcode" data-rm-shortcode-id="4ed91e4e7922ead806a6d11c7ed9e6da" data-rm-shortcode-name="rebelmouse-image" data-width="4392" data-height="2928">
<small class="image-media media-caption" placeholder="Add Photo Caption...">PlayVS employs has key relationships with educational institutions as well as partnerships with major game publishers including Riot and Epic.</small><small class="image-media media-photo-credit" placeholder="Add Photo Credit...">Image from PlayVS</small>
</p><h2>Parents Hit Pause </h2><p>
But it's not so clear cut, said CIF director of corporate sponsorships Chris Fahey. "We had mixed reactions" this past spring, he said. "Some schools had interest in continuing with esports to give kids an outlet. Other schools were like, 'We understand it can be played remotely, but the whole reason we got into this is it brings kids together'."
</p><p>
"It's all over the board. It depends on the school," Fahey added.
</p><p>
At Sunny Hills, Principal Whitten noted that among his school's community, the impression of esports has "gone from something that will rot your brains to lots of positive things – teamwork, communication, high-level problem solving. Parents are very supportive – and now (their kids are) competing and winning and being offered scholarships to go to college."
</p><p>
He also pointed to the growth of the gaming industry – particularly in Southern California – as something his school is trying to help students prepare to enter. In addition to its esports teams, Sunny Hills offers an optional two-year gaming and coding curriculum. Whitten said he thinks his school's gaming program has helped it sustain the number of students at the school, even though it's in a district with declining enrollment.
</p><p>
Some parents and faculty members in Compton's school district have expressed concern that esports won't appeal to female gamers, said Mikle McBride, who directs Compton USD's technical and occupational program, which includes esports. At Sunny Hills, Whitten said esports attracts "boys and girls from all over the world" and many "different cultures.".
</p><p>
Another potential downside, said McBride, are concerns that students will commit too much time to gaming. His program takes steps to mitigate that, however, and he thinks the presence of esports in schools "will explode."
</p><p>
PlayVS' Kennedy noted that 42% of all students on PlayVS had never previously played a high school sport, so, he said, it's "engaging a whole group of students that haven't been engaged."
</p><p>
Many schools feel that esports encourages greater student-school engagement, said CIF director Fahey. Only about 800,000 of the approximately 1.8 million high school students in California are student-athletes, he added.
</p><p>
PlayVS focuses on team-based, strategy-oriented games like League of Legends and Rocket League, Kennedy said. He and Fahey both said research suggests structured gaming can help improve students' grades, behavior and attendance.
</p><p>
With PlayVS signups opening this week and carrying on through the beginning of October, Kennedy said the company is ready for whatever schools ultimately choose to do.
</p><p>
Even if his prediction proves optimistic, the future looks bright for esports in schools. Interest is growing at the college level. Fahey said the NCAA "has looked at it and said 'we're not there yet'," while Kennedy noted that PlayVS has already begun working with athletic conferences to support their forays into esports.
</p><p>
Marlon Nichols, whose L.A.-based MaC Venture Capital has invested in PlayVS, sees that trend advancing. "We're moving into more and more of a virtual world," he said, "so colleges are going to want to add this to their repertoire of what they offer students."
</p>
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