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Cynopsis Esports 7/25/24: Comscore + Newzoo’s latest gaming reports; Game Pass price hikes; College Football 25 fever


Medias First Morning Read
Thursday, July 25, 2024

Good morning! It’s Thursday, and this is your monthly Gaming Brief.

Around 62% of American adults play video games, according to Comscore’s 2024 State of Gaming report. The report, put together in collaboration with Anzu, also revealed that 49% of the U.S. gaming population is Millennials, more than both Gen X (28%) and Gen Z (13%) combined.

Now, that last stat is a bit of a misnomer. Gen Z includes a large number of people who aren’t adults quite yet, and surveys of that demographic regardless of age show that more than 90% of Gen Z games. However, it is a key takeaway for marketers and advertisers deciding where to spend their money now and what returns they can expect. Targeting Gen Z is still a pipeline strategy, not a “win now” decision.

And reaching gaming isn’t just about popping up on their PCs, either. Around 77% of players game on more than one platform, be it mobile, desktop, or consoles, with 40% playing on all three.

One final important note: Players are less hostile toward ads than ever before, likely in part because of the sharp increase of in-game brand activations brought on by user-generated content. Around 64% of PC gamers say ads have either a positive or neutral impact on their playtime, while 75% of console and mobile gamers say the same. Incentives such as in-game rewards for engaging with ads have also softened sentiment toward in-game marketing, though only 45% of players say they don’t mind those types of pop-ups if it means they can get ahead in the game they’re playing by participating.

GAMING NEWS

Xbox is changing its Game Pass subscription model, leading to outrage from consumers as well the ire of the U.S. Federal Trade Commission. Microsoft’s changes to the Xbox subscription service include price hikes for all tiers of Game Pass subscription and the news that Standard subscription holders will no longer get Day 1 access to games that launch on Game Pass. The FTC claimed the changes are price degradation and go against promises made by Microsoft during litigation of its acquisition of Activision. Microsoft has denied the claims.

The International Olympic Committee has agreed to put on the Olympic Esports Games beginning in 2025. The Esports Games will take place in Saudi Arabia over the next 12 years as part of a partnership between the IOC and the Saudi National Olympic Committee, though there is no cadence set for the competition as of now. “​​With the confirmation by the IOC Session of the creation of the Olympic Esports Games, we are keeping up with the pace of the digital revolution,” IOC President Thomas Bach said in a statement.

College Football 25 is taking the U.S. by storm and will likely become one of the best selling games of the year, if not No. 1 overall. More than 2.2 million people played the game during its three-day Early Access period, which was only available to those that purchased the $100 Deluxe Edition of the game or to the additional 600,000 players who took part in Early Access as EA Play subscribers. The decade-long wait for another college football sports sim clearly created an appetite for this title, and the mix of nostalgia, gameplay, and depth of each of the game’s playable modes has led to critical acclaim alongside what could be unmatched commercial success for 2024.

Back to that Activision acquisition. On Wednesday, Call of Duty: Modern Warfare III was made available to Game Pass subscribers, becoming the first Call of Duty game available via the subscription service. The move seems to be a softening technique following fan vitriol over the changes to Game Pass, and it offers a look into Xbox’s strategy moving forward: Pay $20 per month, but get access to all the $70 games you’re hoping to play for that monthly rate.

YOU GOV LIVING DATA INSIGHTS

Olympic Esports Games could be a huge hit among young adults

The IOC’s creation of the Olympic Esports Games – the inaugural edition of which will be held in Saudi Arabia in 2025 – is a reflection of its growing stature. YouGov Global Fan Profiles data shows that esports is now the third most followed sport among 18-24 year-olds across more than 30 global markets, with 12% of them regularly watching or following it.

SPONSORSHIP & ACTIVATION

Longtime NFL partner USAA will sponsor this year’s edition of the Madden NFL 25 Championship Series, the official esports league for Madden announced. USAA will be the “Official Insurance Partner of the MCS,” a competitive gaming circuit that will offer $1.7 million in prizing to top Madden 25 players throughout the coming season, as part of a multi-year deal that will aim to bring USAA’s longstanding presence on the gridiron to the virtual playing field. The partnership will bring USAA jerseys into the game as well as a custom stadium where all MCS Madden Ultimate Team competition will take place.

Pokémon Sleep, one of the more unique AR games out there, has made more than $100 million in revenue in its first year, according to PocketGamer. The title, which is part of the Pokémon Company’s ongoing push to utilize its AR titles like Sleep and Pokémon GO to improve player health, is entirely centered around getting a good night’s rest and progressing by putting up a good sleep score. The game has been downloaded nearly 10 million times and is particularly popular in Japan, with $73 million of its revenue and 44% of its player base coming from the country.

The Halo TV series is looking for a new home following its cancellation by Paramount+, according to a report from Variety. One of the few flops of the recent games-to-TV movement that has led to standout successes for IP like The Last of Us and Fallout, the live-action Halo series, put on by co-producers 343 Industries, Xbox, and Amblin, was canceled after just two seasons. Reception of the show was mixed, with longtime fans panning attempts to diverge from or build on the game series’ lore and a storyline that wasn’t as accessible to casual fans.

Tesla’s Cybertruck is riding up the walls in Rocket League and dropping into Fortnite as part of a collaboration between the vehicle maker and publisher Epic Games. The move, which was met with mixed reactions because of the Cybertruck’s dubious track record on real roads, has made the Cybertruck skin available in both games for free upon completing an in-game event.

2024 Tempest Awards

One week left, and we’re still missing THIS from you

What are we missing, you may ask? Your Tempest Awards entries, of course! Don’t miss out on the gaming & esports industry’s most important recognition. Our final entry deadline is 7/31 at 11:59PM ET. You know what you have to do…

ENTER NOW

NEWZOO’S GLOBAL LOOK AT GAMING

Earlier in the month, Newzoo provided a more global perspective on gaming through its annual Global Gamer Study for 2024. Newzoo’s research was international in scope and age-agnostic, and with that wider audience came some differences between the U.S.-based Comscore research.

Newzoo found that 80% of consumers worldwide play games, with 85% engaging with gaming in some way, such as watching streams. That’s right: The number of people who make games a part of their entertainment schedule is higher than the number that play themselves.

This isn’t a surprise to people who follow the industry closely; content creators are the No. 1 source of entertainment for young people now, and almost every creator cross-pollinates with gaming culture in some way. What’s more noteworthy is that 33% of Newzoo’s 73,000 respondents say they also engage with games in “other ways,” such as being part of a game’s social community online, creating their own content and more.

The report reinforces one of Comscore’s key points, but on a global scale: Being a part of gaming culture requires embedding your brand across multiple platforms and thinking creatively about how to engage not just in-game, but wherever else those players are.

INDUSTRY

Netflix has about 80 games in development and plans to release one title per month moving forward, co-CEO Gregory K Peters said during the company’s latest earnings call. While Peters said the impact of games on Netflix’s business right now is “still quite small,” its investment in the medium is also comparatively small. Netflix plans to scale the games portion of its product slowly, with the hope being it has a “material impact” on the streaming titan down the line. Newly appointed Netflix Games president Alain Tascan, the former executive vice president of game development for Epic Games, will be tasked with helping to make gaming a difference-maker for the company.

Bethesda Game Studios employees across multiple studios in the U.S. have voted to unionize, creating one of the largest games industry unions at one of the best-known development houses in the world. In all, 241 people opted to join the Communication Workers of America, and Bethesda owner Microsoft has recognized the union, which includes a “wall-to-wall” group of the gamut of game development roles across BGS Dallas and BGS Austin in Texas, as well as BGS Rockville in Maryland.

League of Legends and Dota 2 voice actor Sam Mowry has died at 64 years old following a heart attack, his wife, Cindy McGean, announced. Alongside a prolific theater career, the Portland native voiced Dota 2’s Shopkeeper and League of Legends character Rhaast. Oregon ArtsWatch has a full obituary that details Mowry’s impact beyond the gaming scene as well.

Games media faced a series of setbacks over the past month, with longtime esports and gaming sites including The Loadout, Kotaku Australia and Gfinity affected. Kotaku Australia, a domestic vertical of the international gaming publication, and The Loadout announced they would shutter entirely in early July, while Gfinity’s suite of publications were hit with layoffs. Gfinity Esports appears to be the biggest victim, with the future of the site looking unclear.

Cynopsis Standouts

Nominations now open

We know there’s the up-and-comers in your workplace that are making a name for themselves and climbing the ladder. Don’t let their hard work go unnoticed – nominations for Q2 Cynopsis Standouts are now open! For just $99, enjoy the perks of being an esteemed member of the Cynopsis community.

NOMINATE A STANDOUT

TRIVIA
Name one of College Football 25’s three cover athletes. (Email [email protected] with your answer, and be sure to include your name, company and city). Answer to Our Last Trivia Question
What optional base game boss do players have to defeat in order to get to the entrance to the Elden Ring Shadow of the Erdtree DLC? Answer: Minnesota or Indiana – both had never won a championship. Kudos: Tom Moore | Kalt Productions, Los Angeles; Creed Heilskov | ImOn Communications, Cedar Rapids, Iowa; David Westberg | SAG•AFTRA Federal Credit Union, Burbank, California; Michael Goodman | Radio One Atlanta

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