Companies siding with China

21

October

2019

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The events going on in Hong Kong at the moment have not gone unnoticed. This blog will focus on these events and how some companies have managed to get themselves into what seems like difficult situations by siding with China.

 

The first of these companies is Activision Blizzard. This video game company has become the center of controversy after banning a professional Hearthstone player for 12 months and confiscating his prize money (Wood 2019a). Blizzard did this after the player voiced his support of Honk Kong on his live stream. This act has resulted in international attention, with politicians condemning the company, users deleting their accounts and employees of Blizzard quitting their job (Gault 2019).

 

A second company under scrutiny is Apple. The company sparked outrage by deleting the app HKmap.live from their App Store. This app was used by protestors to share the location of the police, so they could plan their movements according to this information. Apple deleted the app from their App Store stating it was used to endanger the lives of law enforcement and residents of Hong Kong (Holmes 2019). This has resulted in politicians and consumers condemning the company for siding with an authoritarian regime (Wood 2019b).

 

The question remains: Do the actions of these companies have consequences for their future? Unfortunately at the moment this does not seem to be the case. Stock prices for both companies have remained stable during these events (Teletrader 2019) and while users reported their intention of deleting their Blizzard accounts, the company is experiencing great times at the moment with the release of World of Warcraft Classic this summer and Call of Duty: Modern Warfare set to release later this week. So while the outrage was definitely there, it looks to be only a vocal minority actually taking action.

 

Gault, M. (2019). Blizzard’s Hong Kong Screw-Up Is Officially an International Incident. Accessed on 21 October 2019, from https://www.vice.com/en_us/article/bjw535/blizzards-hong-kong-screw-up-is-officially-an-international-incident

 

Holmes, A. (2019). Apple is getting slammed by both Republicans and Democrats for pulling an app used by Hong Kong protesters to monitor police activity. Accessed on 21 October 2019, from https://www.businessinsider.nl/apple-criticized-by-lawmakers-for-removing-hkmaplive-from-app-store-2019-10?international=true&r=US

 

Teletrader. (2019). AAPL 240.70 USD – TeleTrader.com. Accessed on 21 October 2019, from https://www.teletrader.com/apple-inc/stocks/details/tts-117450490

 

Wood, C. (2019a). California-based game company Blizzard bans pro esports player and confiscates his prize money after he voices support for Hong Kong protesters. Accessed on 21 October 2019, from https://www.businessinsider.nl/blizzard-bans-esports-player-blitzchung-supporting-hong-kong-protests-interview-2019-10?international=true&r=US

 

Wood, C. (2019b). Hong Kong lawmaker calls Apple an “accomplice for Chinese censorship” – Business Insider. Accessed on 21 Oktober 2019, from https://www.businessinsider.com/hong-kong-lawmaker-says-apple-is-accomplice-for-chinese-censorship-2019-10?r=US&IR=T

 

 

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The Netflix of The Gaming Industry

5

October

2019

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Microsoft recently announced it will begin testing its game streaming service, xCloud, from October onward within the US, UK and South Korea (Nu.nl, 2019). This service will enable users to stream videogames directly to their device of choice. With Google Stadia launching this November and Sony’s PlayStation Now already active, this will be the third big player introducing a gamestreamingservice to the world. This poses the following interesting question: Will game streaming services take on the same role within the gaming industry that video streaming services, like Netflix, have taken on within the movie industry?

PlayStation Now was launched in 2014 and since then has grown rapidly. There has been an increase in user of around 40% yearly (Strickland, 2019), which is comparable to Netflix’ growth in users from Q4 2011 to Q4 2012 (around 41%). Since then however, Netflix has increased in user numbers with around 30% on average yearly (Nu.nl, 2017). While it is a promising sign that the growth ratio matches that of Netflix, total user numbers should also be taken into account. Four years after Netflix started its streaming platform their user base consisted of about 50 million people (Nu.nl, 2017). PlayStation Now, as of April 2019, user base consists of only 700.000 users. These users represent less than 1% of PlayStation’s current install base (Strickland, 2019).

In conclusion, while the growth ratio of the user base of Sony’s game streaming service matches and exceeds that of Netflix in its early stages, there is still a long way to go for game streaming services as a whole. Their market position at the moment is not comparable to video streaming services. However, the potential is definitely there.

Gurwin, G. (2019). Microsoft xCloud: Everything we know about the streaming service. Retrieved on 5 October 2019, from https://www.digitaltrends.com/gaming/microsoft-xcloud-price-beta-release-date/

Nu.nl. (2017). Groei aantal Netflix-abonnees hoger dan verwacht. Retrieved on 5 October 2019, from https://www.nu.nl/internet/4400313/groei-aantal-netflix-abonnees-hoger-dan-verwacht.html

Nu.nl. (2019). Microsoft test gamestreamingdienst xCloud vanaf oktober in VS en VK. Retrieved on: 5 October 2019, from https://www.nu.nl/games/5997967/microsoft-test-gamestreamingdienst-xcloud-vanaf-oktober-in-vs-en-vk.html

Strickland, D. (2019). PS Now has 700,000 users, still leads online game streaming. Retrieved on 5 October 2019, from https://www.tweaktown.com/news/65717/ps-now-700-000-users-still-leads-online-game-streaming/index.html

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