Voices of the Future: How AI is Revolutionizing Sound in Video Games, EA FIFA Case Study

19

September

2024

5/5 (1)

The evolution of sound in gaming video game audio has come a long way since the early days of simple beeps and 8-bit soundtracks in the late 80’s (Drake, 2019). Today, sound and voice overs play a crucial role in immersing players in rich, dynamic worlds and game scenarios (Gallacher, 2013)(Bormann & Greitemeyer, 2015)(Stingel-Voigt, 2020)(Cesário et al., 2023). And  another revolution is just underway – one powered by artificial intelligence. AI-generated sounds and voice overs are rapidly transforming how game developers approach audio design, offering a completely new dimension of customization, scalability, and immersion (Filipović, 2023). This blog post dives into the emerging world of AI-generated sound and voice overs, highlighting companies that already provide such solutions, and provides a case study on how major gaming companies such as Electronic Arts (EA) could harness this technology to enhance their flagship franchises like FIFA (Nelva, 2024). 

(Drake, 2019)

“And now of course we’re in the era of generative AI which is the most exciting yet by a fairly wide margin and something that we’re embracing deeply. We think about it in three core vectors: efficiency, expansion, and transformation.” – Andrew Wilson, CEO EA.

Speaking of efficiency, EA Sports CEO Andrew Wilson mentioned that the company’s business involves an incredibly iterative development cycle as pressing a button in a game doesn’t just need to trigger the desired effect on the screen, but also needs to be fun. As a result, game development is very time-consuming and new games are still taking a couple of years to fully develop (Morgan Stanley, 2024).

What is AI-Generated Sound and Voice Over? 

At its core, AI-generated sound and voiceover technology relies on deep learning models that synthesize speech and sound effects based on their vast datasets. These models can be trained to replicate human voices, create new ones, or generate contextual soundscapes in real time. Those can further be added to in-game NPC’s, background noises such as stadium chanting or interactions with other users (Replica Studios, 2024). AI voice models are particularly powerful because they can scale endlessly – enabling developers to generate unique character voices or sound environments that evolve with player actions and game development. This technology is already being adopted by various companies, making sound design faster, cheaper, and more flexible than ever before (Filipović, 2023). I hope to see it implemented on a larger scale as soon as possible as it brings a lot of new functionalities and increased accessibility for all users. 

A feasibility study across all of EA’s game development processes showed that about 60% of them have “high feasibility to be positively impacted by generative AI.” (Morgan Stanley, 2024).

To provide a more material example, in the past building a stadium for a sports game such as FIFA took six months. In the past year, it took six weeks, and it’s not unnatural to think that very soon, it’ll take less than six days. Wilson believes that extending this concept to every aspect of development could drive meaningful efficiency for the EA (Nelva, 2024).

EA Sports uses many advanced technologies powered by revolutionary AI systems such as HyperMotion and AI Mimic (Molina, 2024).

Companies Leading the Way 

  1. Replica Studios

Replica Studios is at the forefront of AI-generated voice overs offering both text-to-speech as well as speech-to-speech solutions in multiple languages. They provide game developers with a library of AI voices that can deliver dialogue, narration, and character voices at scale. Replica’s platform allows developers to generate voice lines in minutes, which is a massive leap in efficiency compared to traditional voiceover production. They recently introduced a very interesting plug-in for unreal engine called Smart NPC, which basically allows talking to any NPC through your microphone and receiving a custom dialogue response in real-time. It adjusts the emotional tone and intensity of the response as well as adds NPC face expressions based on in-game events (Replica Studios, 2024). For games like FIFA, where commentators could dynamically react to player performance or key moments, this kind of AI-driven personalization could significantly elevate player engagement.

Voice Lab: Describe your voice, or the role or character you would like the AI to portray, and dream it into existence with Voice Lab, a prompt-to-voice design feature which can create a blend of up to 5 Replica voices which all contribute their unique accents, prosody, and other vocal features to the resulting new voice (Replica Studios, 2024).

  1. Eleven Labs 

Eleven Labs specializes in deep-learning models that generate highly realistic and natural-sounding speech. Their ability to clone voices and synthesize speech in multiple languages has the potential to revolutionize localization for global games (Eleven Labs, 2024). For a company like EA, which regularly releases games in dozens of languages, Eleven Labs could dramatically reduce time and costs associated with localization. Moreover, Eleven Labs’ technology could allow players to customize their in-game avatars’ voices, adding an additional layer of personalization and immersion that would further enhance user experience across EA’s game portfolio.

(Eleven Labs, 2023)

  1. Sonantic 

Sonantic, recently acquired by Spotify, focuses on generating emotionally modulated voice overs. Their AI voice models can express a range of emotions, from subtle sadness to intense excitement. This level of emotional depth is essential for creating believable character interactions and narratives in games (Virtucio, 2023). For a game like FIFA, Sonantic’s technology could enable commentators or characters to convey emotions based on real-time match scenarios- turning a victory celebration or last-minute goal into a more compelling experience for players.

Spotify to Acquire Sonantic, an AI Voice Platform (Spotify, 2022).

How does it work?

AI-generated voices and sounds work by using models that have been trained to understand and mimic human speech or create sounds based on patterns. Here’s how it works step by step, using text-to-voice or in-game action to sound as an example: 

1. Training the AI Model

First, developers “teach” an AI how human voices sound. This is done by feeding the AI large amounts of voice recordings paired with the text spoken in those recordings. The AI learns to recognize patterns like how certain words are pronounced, different voice tones, and even emotions. This process is called machine learning. For sound effects, the same concept applies – the AI learns how different sounds (like footsteps, explosions, or wind) should sound based on data it’s trained on (Eleven Labs, 2023) (PlayHT, 2024).

2. Turning Text or Actions into Sound

Once the AI is trained, here’s what happens when it needs to turn text or an in-game action into sound or voice: 

  • Step 1 – Input: The game sends the AI a command based on what’s happening. This command can be a piece of text (for voiceovers) or an in-game action (like a character running). When FIFA produces the text, the AI system breaks it down into phonetic components. It then synthesizes these components, piecing them together to form words and sentences (Eleven Labs, 2023).
  • Step 2 – Processing: The AI processes this input. It uses its training to understand how the text should be pronounced or what sound should be made based on the action. For example, it knows how to emphasize excitement when saying “Goal!” in a sports game. To enhance realism, some advanced AI voice generators incorporate techniques like Natural Language Processing (NLP). NLP helps the system understand and interpret the nuances of language, allowing it to modify its speech output accordingly. This includes adjusting for sarcasm, questions, or excitement, making the synthetic voice sound more natural and human-like (Eleven Labs, 2023).
  • Step 3 – Sound Generation: Using this understanding, the AI generates the actual sound. For text, it creates a voiceover that sounds natural, as if a human said it. For in-game actions, it produces the appropriate sound effect, like the crowd cheering or the sound of the ball hitting the net (PlayHT, 2024). 

3. Real-Time Adjustments 

One of the cool things about AI-generated sounds is that they can adjust in real time. In a game, AI can react immediately to what’s happening: 

– If a player scores a goal, the AI might dynamically adjust the commentator’s tone to match the excitement of the moment.

– For sound effects, the AI might adjust the intensity or volume of crowd noises based on the importance of the goal. 

In the end, all of this happens quickly and seamlessly in the background. The AI takes text or actions, interprets what they mean, and instantly turns them into sound or voiceover, creating a more immersive experience for the player.

What are the differences between text-to-speech versus AI voice generation?

FeatureText-to-Speech (TTS)AI Voice Generation
TechnologyUses synthesized speech from text using basic digital voices.Employs advanced machine learning algorithms to generate more natural-sounding voices.
CustomizationLimited to pre-set voices and basic adjustments in pitch and speed.Offers extensive customization, including voice cloning and nuanced emotional tones.
RealismOften sounds robotic and less natural.Produces highly realistic and human-like speech.
ApplicationWidely used for reading text aloud in a straightforward manner.Used for creating dynamic and engaging audio content, mimicking human speech patterns more accurately.
FlexibilityGenerally offers a one-size-fits-all approach.Allows for creating unique voices tailored to specific needs or characters.
User InteractionPrimarily unidirectional; reads text as-is.Can interact more fluidly in conversational AI, adapting tone and style contextually.
DevelopmentBased on simpler speech synthesis technology.Involves complex AI models like neural networks for voice generation.
Use CasesUseful in accessibility tools, GPS navigation, and basic voice assistants.Ideal for high-quality voiceovers, virtual assistants, gaming, and personalized customer interactions.
(Eleven Labs, 2023)

How EA and FIFA Could Leverage AI-Generated Voiceovers: Case Study

EA Sports is already a giant in the gaming industry, with its FIFA franchise being one of the best-selling games of all time. By integrating AI-generated voiceovers and sounds, EA could unlock several strategic advantages (Nelva, 2024).

EA Sports FC 24 has hundreds of run cycles for its players built by generative AI (Nelva, 2024).

  1. Enhanced Player Engagement with Dynamic Voiceovers

One of the most exciting applications of AI-generated voices for EA would be the introduction of dynamic, real-time voice overs in FIFA. Currently, FIFA’s commentators are pre-recorded, with a fixed number of responses to match events. With AI-generated voice overs, commentators could react dynamically to player actions, offering new commentary each time a similar event occurs. For example, in a high-stakes match, the AI commentator could offer unique insights based on the players’ performance history or their current standing in a tournament. This level of customization could lead to increased immersion, keeping players more engaged and extending the life cycle of each game. Replayability would also improve as players receive fresh commentary in every match.

  1. Cost-Effective Localization and Multi-Language Support 

FIFA games are released in numerous languages, requiring extensive voice recording for each localized version. With tools like Eleven Labs, EA could significantly reduce the cost and time associated with this process. AI voice synthesis could generate high-quality localized commentary and dialogue for global markets quicker, and at a fraction of the traditional cost. This scalability would also allow EA to release more language options simultaneously, expanding its market reach and improving its presence in regions that currently have limited localization support.

  1. Monetization Opportunities Through Custom Voice Packs

AI-generated voices open up a new avenue for monetization through downloadable content (DLC). EA could sell custom voice packs – allowing players to download unique commentators, player voice overs, or even region-specific packs that provide a more personalized gaming experience. For example, fans could purchase special voice packs for their favorite leagues or teams, or even retro-style commentators from past FIFA games. This type of microtransactions could drive revenue while providing additional value to players.

Risks and Ethical Considerations 

Despite the clear advantages, implementing AI-generated voices and sounds is not without risks. One concern is the potential displacement of voice actors, as AI-generated voices reduce the need for human talent. Companies like EA will need to balance innovation with the preservation of creative jobs, potentially by using AI voices as a supplement to human actors rather than a full replacement. Another ethical concern is the misuse of AI-generated voices, particularly when it comes to voice cloning. Companies must ensure that AI models are used transparently and ethically to avoid issues like deep fakes or unauthorized voice replication. In the case of EA, clear policies on voice data and AI usage will be necessary to maintain player trust. 

Strategic Implications for EA 

By adopting AI-generated voice overs, EA could further solidify its leadership in the gaming industry while enhancing its ability to innovate and scale. Key strategic benefits include:
 

  • Faster Development Cycles: With AI handling more repetitive voiceover tasks, EA could release games and updates more quickly, maintaining its competitive edge. 
  • Expanded Market Reach: Efficient localization would allow EA to target more global markets, increasing the international appeal of its FIFA franchise. 
  • New Revenue Streams: Custom voice packs and AI-enhanced features could create additional microtransaction opportunities and further drive this classics’ popularity, ensuring EA’s continued financial success. 

Conclusion

This new era of game audio AI-generated sounds and voice overs represent a major step forward in how games are developed and experienced. Companies like Replica Studios and Eleven Labs are pushing the boundaries of what’s possible in the video game world, and large developers like EA are to benefit immensely from these advancements. By embracing this technology, EA can not only improve its games but also shape the future of audio in gaming – creating richer, more personalized, and more immersive experiences for players all around the world. I’m excited to see how such concepts become reality in the nearest future.

References

Bormann, D., & Greitemeyer, T. (2015). Immersed in Virtual Worlds and Minds. Social Psychological and Personality Science. https://www.semanticscholar.org/paper/Immersed-in-Virtual-Worlds-and-Minds-Bormann-Greitemeyer/cd705ccbcb2d3316e8645ec05bf08e22974fbbce

Cesário, V., Ribeiro, M., & Coelho, A. (2023). Design Recommendations for Improving Immersion in Role-Playing Video Games. A Focus on Storytelling and Localisation. Interaction Design & Architecture(s) Journal. https://doi.org/10.55612/s-5002-058-009

Drake, J. (2019, August 11). The 10 Best Soundtracks From The 8-Bit Generation. TheGamer. Retrieved September 19, 2024, from https://www.thegamer.com/best-soundtracks-retro-games-8-bit/

Eleven Labs. (2023, January 11). This Voice Doesn’t Exist – Generative Voice AI. ElevenLabs. Retrieved September 19, 2024, from https://elevenlabs.io/blog/enter-the-new-year-with-a-bang

Eleven Labs. (2023, December 3). What is an AI voice generator and how does it work? ElevenLabs. https://elevenlabs.io/blog/what-is-an-ai-voice-generator

Eleven Labs. (2024). AI Dubbing: Free Online Video Translator. ElevenLabs. https://elevenlabs.io/dubbing

Filipović, A. (2023). THE ROLE OF ARTIFICIAL INTELLIGENCE IN VIDEO GAME DEVELOPMENT. Kultura Polisa. https://www.ceeol.com/search/article-detail?id=1201751

Gallacher, N. (2013). Game audio — an investigation into the effect of audio on player immersion. The Computer Games Journal. https://link.springer.com/article/10.1007/BF03392342

Molina, D. (2024, March 11). The Dawning of a New Era: AI Takes the Field in EA Sports FC. FIFA Infinity. Retrieved September 19, 2024, from https://www.fifa-infinity.com/ea-sports-fc/the-dawning-of-a-new-era-ai-takes-the-field-in-ea-sports-fc/

Morgan Stanley. (2024). Tech, Media & Telecom 2024: The State of Generative AI. Morgan Stanley. https://www.morganstanley.com/Themes/tech-media-telecom-trends-insights-outlook

Nelva, G. (2024). EA Hopes to Use Generative AI to Drive Monetization and Make Development 30% More Efficient. TechRaptor. https://techraptor.net/gaming/news/ea-hopes-to-use-generative-ai-to-drive-more-monetization-and-make-development-30-more

PlayHT. (2024). What is an AI Voice Generator? PlayHT. https://play.ht/blog/what-is-an-ai-voice-generator/#:~:text=AI%20voice%20generators%20convert%20text,structure%20and%20generate%20corresponding%20audio.

Replica Studios. (2024). Smart NPCs | Ethical AI. Replica Studios. https://www.replicastudios.com/products/smart-npcs

Replica Studios. (2024). Voice Lab. Replica Studios. https://www.replicastudios.com/products/voice-lab

Spotify. (2022, June 13). Spotify to Acquire Sonantic, an AI Voice Platform — Spotify. Spotify Newsroom. Retrieved September 19, 2024, from https://newsroom.spotify.com/2022-06-13/spotify-to-acquire-sonantic-an-ai-voice-platform/

Stingel-Voigt, Y. (2020). Functions and Meanings of Vocal Sound in Video Games. Journal of Sound and Music in Games. https://online.ucpress.edu/jsmg/article-abstract/1/2/25/106828/Functions-and-Meanings-of-Vocal-Sound-in-Video?redirectedFrom=fulltext

Virtucio, M. (2023, January 20). Sonantic AI Voice Generator: Detailed. Softlist.io. Retrieved September 19, 2024, from https://www.softlist.io/sonantic-ai-voice-generator-detailed/

Please rate this

Is real-time ray tracing worth it for consumers in 2022?

15

October

2022

No ratings yet.
NVIDIA RTX 2080 Ti graphics card (https://www.nvidia.com/nl-nl/geforce/20-series/)

Computer-generated graphics have been steadily improving in quality over the past few decades. We have advanced from crudely rendered 8-bit graphics to photorealistic images due to improvements in computational hardware. One of the critical elements of photorealism is the behaviour of light.

In the real world, light behaves like a ray and reflects (bounces) and refracts (bends) while interacting with various surfaces based on physical properties like colour, emissivity, refractive index, etc. To create an accurate rendition of a scene on a computer, we would have to program all these properties into virtual objects, render numerous light rays from all light sources, and trace the paths of these rays as they interact with the virtual objects. This process is known as ray tracing.

Ray tracing using computer hardware has been attempted as far back as 1982 by the LINKS-1 computer graphics system in Osaka, Japan (http://museum.ipsj.or.jp/en/computer/other/0013.html). However, due to the heavy computational requirements, it was reserved for use in pre-rendered scenes. In 1995, the animated movie “Toy Story” was released by Pixar studios, and it was rendered on 117 computers. It took between 45 minutes to 30 hours to render a single frame. (https://www.insider.com/pixars-animation-evolved-toy-story-2019-6). To perceive smooth motion, we must see at least 24 image frames in a single second, but computers obviously couldn’t render so many frames in real-time with ray tracing enabled. Hence, most computer graphics generated in real-time on consumer hardware was rendered using a method called “rasterization”, which approximated how light would be rendered and could result in glaring visual flaws, which reduced immersion.

In short, the main factors which have prevented ray tracing from becoming mainstream are as follows:

  • Cost: The amount and type of hardware to render images with ray tracing would be prohibitively expensive, costing tens of thousands of dollars.
  • Speed: Even after spending a lot of money, the speed of rendering would be too slow for real-time applications, taking several minutes to even hours to render a single frame.
  • Electricity consumption and heat production: A large amount of hardware would consume a lot of electricity and thus produce a lot of heat, making it impractical for average consumers.

This changed in 2018 when NVIDIA launched the RTX 2000 series of graphics processing units, with specialized hardware to drastically speed up the mathematical operations required for ray tracing calculations. It was possible to get a computer costing less than 1000$ and consuming only 300-400 watts of electricity capable of rendering ray-traced images in real-time at a reasonable speed. Since then, graphics processing units have been steadily improving in performance following Moores’s law, and now it’s possible to render games with real-time ray tracing enabled at high frame rates. The most recent RTX 4090 graphics card achieved 60 Frames Per Second or more at an image resolution of 3840 by 2160 pixels with ray tracing enabled on numerous games from AAA studios (https://www.eurogamer.net/digitalfoundry-2022-nvidia-geforce-rtx-4090-review-extreme-performance?page=5), once thought impossible. The number of games supporting ray tracing has rapidly increased, reaching 141 as of October 15, 2022 (https://www.pcgamingwiki.com/wiki/List_of_games_that_support_ray_tracing).

Given the visual benefits of ray tracing, increased support from games, and the primary constraints of Cost, speed, and power consumption are mitigated to a large extent, the answer to whether ray tracing is worth it for consumers in 2022 is a resounding YES!!! The scope for real-time ray tracing could also extend to the metaverse and other digital content consumed by the general public as prices for ray tracing hardware reduce.

Please rate this

Cloud Gaming – The Future of Gaming

9

October

2022

5/5 (1)
Elena Lacey; Getty Images

The services cloud gaming providers offer are quite dependent on the company. Some provide a Windows-based desktop with all features of a fully-fledged Windows environment (Shadow), others provide access to a set library of games (Xbox Cloud Gaming), and some provide access to hardware that’s compatible with specific games that a user must buy independently (GeForce Now). The innovations are there, but are these enough to shift console, PC, and even mobile gaming to the cloud?

What makes cloud gaming attractive to users is that it’s a cheap and easy way to access video games. A monthly subscription for the Xbox Game Pass Unlimited costs 12.99€ and provides access to over 100 games and access to cloud hardware equivalent to the 499.99€ Xbox Series X (Subhan, 2021). With fully-fledged Windows environments, such as those provided by Shadow, the cost savings margin is even greater, providing access to hardware upwards of 1500€ if you include costs required to build a pc (Motherboard, Case, etc.). But with these great offers, what is holding back cloud gaming and why did platforms like Stadia fail?

Cloud gaming requires a fast and stable internet connection. With the progressive implementation of high-speed fibre cables, which provide network speeds of up to 1 GB/s, this will soon no longer be an issue. Solely having high network speeds is however not enough for all games. Online games, which have a market share of 56.5% of the total gaming market when excluding mobile games (Statista, 2022) require low latency to prevent lag and improve reaction time. Cloud gaming practically doubles latency from the user’s standpoint by having to connect to the cloud and form the cloud to the game server instead of directly to the game server (Campbell, 2022). This is especially troublesome for competitive E-Sports games such as League of Legends and Counter Strike. Due to this, the online game genre will likely not see a growth or shift in gamer base stemming from cloud gaming until latency can be improved.  

According to Fortune Business Insight (2022), the cloud-gaming industry will see a CAGR of 43.6% until 2029. The main drivers of the Cloud gaming industry are hardcore gamers and mobile gamers (Fortune Business Insight, 2022). Hardcore gamers spend a majority of leisure time on gaming, due to this they tend to have higher hardware requirements. Mobile games currently account for 77% of the total gaming market (Statista, 2022). These run-on mobile processors with limited power. Cloud gaming has the potential to disrupt this market, making high power hardware accessible from phones and tablets and allowing users to run console level games and graphics on their mobile devices.

References

Campbell, A., 2022. Cloud gaming latency – the main stumbling block of the industry. [online] HelpWire Blog. Available at: <https://www.helpwire.app/blog/cloud-gaming-latency/#:~:text=If%20you%20are%20restricted%20to,add%20to%20your%20latency%20issues.> [Accessed 9 October 2022].

Fortune Business Insights, 2022. With 43.6% CAGR, Cloud Gaming Market Size worth USD 40.81 Billion in 2029. [online] GlobeNewswire News Room. Available at: <https://www.globenewswire.com/en/news-release/2022/05/23/2448235/0/en/With-43-6-CAGR-Cloud-Gaming-Market-Size-worth-USD-40-81-Billion-in-2029.html> [Accessed 9 October 2022].

Statista, 2022. Video Games – Worldwide. [online] Available at: <https://www.statista.com/outlook/dmo/digital-media/video-games/worldwide#revenue> [Accessed 9 October 2022].

Subhan, I., 2021. Xbox Cloud Gaming now runs on Series X hardware. [online] Eurogamer.net. Available at: <https://www.eurogamer.net/xbox-cloud-gaming-now-runs-on-series-x-hardware#:~:text=Series%20xCloud.&text=Microsoft%27s%20Xbox%20Cloud%20Gaming%20service,framerates%20and%20lower%20loading%20times> [Accessed 9 October 2022].

Please rate this

The ‘Gamification’ of digital fashion.

8

October

2021

5/5 (1)

Digital fashion has been established since 2018, where companies use VR and AR to show off their new collections in a virtual space. The Fabricant, a virtual fashion designer firm, has made it clear that designing clothing online allows for more creativity, less required resources, and less-risk when designing clothes, and necessary to battle the restrictions of Covid-19 (The Fabricant, n.d.). But lately, a new development has emerged in the fashion industry: using games to advertise and sell clothes, the “gamification of fashion”.

Gamification is defined as the process of adding game elements to non-game activities (Fitz-Walter, n.d.). For fashion brands, such as Burberry, who partnered with Tencent Games and their game “Honor of Kings”, justified their partnership: “Interactive digital content is increasingly become a source of inspiration in (luxury) fashion, games offer another opportunity for consumers to connect with our products online” (Key, 2020). Some brands go as far to create their own free-to-play virtual gaming space, such as Balenciaga, to show off their new collection in virtual dressing rooms. (Key, 2020).

The partnerships with game publishers have become a prominent way for fashion brands to show and sell collections, yet other brands, such as H&M, take it even one step further: selling digital fashion in games. H&M has partnered with Nintendo and their game “Animal Crossing”, which saw major influx of sales due to Covid-19 (Orland, 2021), to recycle their in-game clothes and receive H&M catalogue for their virtual avatars. In addition, H&M created a virtual avatar in the gaming space, which will act as a brand ambassador across games (Scandinavian Mind, n.d.)

Lastly, to illustrate the significance of the emergence of the virtual space of fashion, Digital fashion courses have also been integrated into Bachelor and Master programs in Fashion (Digital Fashion Communication, n.d.). The fashion industry has adapted to the limitations of covid-19, and it is expected to stay.

What do you think about digital fashion? Is it an effective way to showcase collections, or do you still prefer to visit stores and see tangible clothing?

References

Digital Fashion Communication. (n.d.). Master programmes in (digital) fashion communication. Retrieved 8 October 2021, from https://digitalfashion.ch/list-of-masters/

Fitz-Walter, Z. (n.d.). What is Gamification? Gamify. Retrieved 8 October 2021, from https://www.gamify.com/what-is-gamification

Key, M. (2020, December 9). Fashion Gamification: Why high-end brands like Balenciaga are turning to virtual gaming. Reydar. https://www.reydar.com/fashion-gamification-balenciaga/

Orland, K. (2021, February 1). Why Animal Crossing: New Horizons ’ 31 million sales are so incredible. Ars Technica. https://arstechnica.com/gaming/2021/02/putting-31-million-animal-crossing-new-horizons-sales-in-context/

Scandinavian Mind. (n.d.). 6 brands that are leading the way for virtual fashion. Retrieved 8 October 2021, from https://scandinavianmind.com/news/6-brands-that-are-leading-the-way-for-virtual-fashion

The Fabricant. (n.d.). The Fabricant | A Digital Fashion House. Retrieved 8 October 2021, from https://www.thefabricant.com/

Please rate this

From Wild West to Mainstream：The Development of Esports Seems Unstoppable

18

September

2019

5/5 (2)

Supercell Announces $250K Brawl Stars World Championship for South Korea

2K Games and ESL Partner for $145K NBA 2K20 Global Championship

Streaming Network VENN Raises $17M in Funding Round Led by BITKRAFT

Gears 5 2019-20 Season to Feature $2M+ in Prizing

BLAST Premier CS: GO Series Announced for 2020 with $4.25M Prize Pool

Nike Showcases League of Legends Team Uniforms, Intel Brings Esports to Tokyo Olympics

Nissan Shares Car-Inspired Gaming Chair Concepts on Social Media

NetEase Plans $710M Esports Park in Shanghai

 

The Development of Esports Seems Unstoppable

Hi, dear readers. Look at all these inspiring news titles. Please pay attention to how big the prize pool of the Esports Championship is, how enthusiastic investors are and how closely the Esports industry connected with traditional industries. And these randomly picked pieces of news are only a tiny part of the whole news that recently happened in Esports world.

What is Esports

Esports (also known as electronic sports, e-sports, or eSports)  according to Wikipedia is a form of competition using video games. Esports often takes the form of organized, multiplayer video game competitions, particularly between professional players, individually or as teams.

A video about Esports

Most of you may hear of the Esports some times, even some of you are an amateur or a professional Esports player. But according to my own experience, 80% of the people around me have no clear and detail image of the Esports in their mind.  This may also indicate that the Esports industry will have a promising future for there are still a lot of potential participants not covered by the Esports yet. So for now, I will show you a youtube video, and in this video, it will tell you 15 things that you might don’t know about The eSports Industry.

How Goldman Sachs Say:

Then we take a look at how the investment banking giant says about Esports industry. “From Wild West to Mainstream” is the title of a research report issued by  Goldman Sachs on  12 October 2018. According to this report:

  • By 2022, we estimate the eSports audience will reach 276mn, similar in size to the NFL today.
  • We expect total eSports monetization will reach $3bn by 2022.
  • By 2022, we model eSports industry advertising revenue of $429mn (25% 5-year CAGR), tipping revenue of $372mn (24% 5-year CAGR), and sponsorship revenue of $1.1bn (34% 5-year CAGR).
  • In 2022, we expect media rights to reach40% of total eSports revenue, comparable to the average of the four major Western sports leagues today.
  • After media rights, we expect sponsorship will become the second-largest contributor of revenue, at 35% of the total in 2022.
  • But we believe that continued progress in the establishment of eSports structured leagues, reinforced by continued double-digit y/y audience growth, will drive sponsorship revenue growth to over $1bn by 2022, at which point we expect the eSports audience will reach 275mn, comparable to what the NFL has today
  • China is the Largest eSports market in the world and the industry in China is expected to grow at 23% CAGR during 2017-22E according to Frost & Sullivan.

Opportunities

So what are the opportunities for us to cut a slice of the pie?

  • As a professional gamer, your income will usually come from salary, bonus, live streaming tipping,  Advertising endorsement, and commission from selling game-related products and so on. (The highest overall esports salary is currently $ 3,626,277.75, earned by Kuro Takhasomi, a Dota 2 player. https://info.jkcp.com › blog › professional-gamer-salary-esports)
  • Find a job in the industry. For the industry is booming now, huge amounts of capital are rushing into the industry. This will usually increase the demand for the talents in a very short time and keep high demand in many years while the supply of the talents will not change significantly. Under this condition, if you find a job in the Esports industry, you might get a salary which is much higher than the average salary of the same position in the city you work in.
  • As a game developer, the competition in this area is so fierce. It is not easy to make a success in this area as a start-up but there are always some companies that can stand out and cut a share.
  • As an investor, if you are rich, or even you are not rich but have strong faith in this industry(maybe borrow money from banks), you can also make investments in the industry. A lot of stars and celebrities have already made their moves. Such as Tony Robbins who is Famed for his effervescent motivational speeches and philanthropy, Tony Robbins and basketball legend Magic Johnson teamed up to start a company called aXiomatic. They’re now owners of the Team Liquid franchise.
  • As Esports live-streamer, this is also a very new and promising work to do. Some of the Esports live-streamers have millions of fans and earn millions a year.

The opportunity I mentioned above is just some common options. Don’t set limitations on your imaginations about the industry and let us see what will truly happen in the Esports World.

At last, if you want to know more about Esports, the industry, and players, then I highly recommend you to watch this documentary named “OG’s comeback to win DOTA 2’s TI8 | Against The Odds”.

 

Sources:

Click to access report.pdf

https://www.esportsbets.com/news/celebrities-invest-in-esports/

https://36kr.com/p/5161285

https://en.wikipedia.org/wiki/Esports

https://edition.cnn.com/2018/08/27/us/esports-what-is-video-game-professional-league-madden-trnd/index.html

I’ve made TI9-themed wallpaper, hope you will like it from DotA2

 

 

Please rate this

Extending the Concept of Versioning in the Video Games Industry

7

October

2018

How versioning has impacted the gaming industry and how companies use it to capture value long after a game is released.

5/5 (2)

Building on Tom’s article which can be read in this blog (https://digitalstrategy.rsm.nl//2018/09/21/versioning-and-the-gambling-debate-in-the-video-game-industry/), the video games industry is perhaps one of the best examples in order to understand the dynamics of versioning and to grasp its various benefits. In this sector, versioning can be accomplished with little effort and in varied ways, normally with different strategic purposes and allowing companies to derive various benefits.

The first and most evident way is perhaps, multiplatform releases. In order to cater to a wider audience, publishers release their games in multiple platforms (generally, Xbox One, PS4 and PC), mostly with minimal observable differences between them. Adding to these already three different versions, publishers also usually launch pre-order bonuses and different versions for each platform. Taking the FIFA 19 game example, at launch you could choose from three versions for each platform: Standard Version containing the full-game (€69.99), Champions Edition containing the full-game, 3-day early access to the game and FIFA Ultimate Team (FUT) boosts (€89.99) and finally, an Ultimate Edition with all of the above benefits plus additional FUT boosts for €99.99. This said, upon release only, FIFA 19 had already launched in nine different versions.

Other times, versioning can be integrated into the game’s business model from day one and be the source of revenue, as it happens with the freemium model, similarly to Spotify’s business model, which distinguishes between a free and a premium version. However, long after release, companies are still able to capture value from versioning, being able to do it mainly through three different ways: complete editions/game of the year editions, remakes and remasters.

A videogame’s lifecycle has widely changed during the last generations of consoles and before, as games would become outdated and their player-base would decrease, months or a couple of years after release, the games could be found heavily discounted on stores. This has changed, however, with the introduction of Digital Local Content (DLC) which adds additional content to the original game under the form of features, items, quests or modes attracting players back into the game. After releasing these packs of contents, companies are now able to bundle them together with the initial release under a name similar to “Complete Edition”, bumping the price of a one- or two-year-old game back to the full-price of 69.99€ at a low marginal cost.  A good example of this is Ubisoft’s Assassin’s Creed 2, which has been bundled with DLC and re-bundled with other games not in one, not in two, but approximately in fourteen different versions.

Versioning can also come from the remastering of a game, which consists in relaunching the existing game while making some small tweaks (e.g. increase resolution from 720p to 1080p or from 30 frames-per-second to 60) or introducing new features in order to take advantage of the capabilities of a new platform. This versioning strategy presents several advantages to developers and publishers. Firstly, the costs of remastering a game are significantly lower than developing one from scratch and its production process can usually be outsourced. Secondly, it allows companies to promote their intellectual properties (IP) to audiences that were not able to purchase their IPs before as they, for example, did not have the console for which it was initially launched. Thirdly, these remakes are commonly launched right before a new game of the series is released, proving as an effective way to promote it. Finally, when new hardware is launched, remasters allow developers to experiment and learn from it, representing a much less risky approach then releasing a brand-new big budget title.

Companies can also remake their games, which is not to be confused with remastering since remaking (as the name implies) consists in remaking a game almost from the ground up rather than simply tweaking it. This usually happens if the game becomes too outdated, making it very difficult for developers to update existing assets and to use an obsolete game engine, making it more efficient to just remake it all together. This strategy has the added advantage of appealing to the already existing core fanbase, leveraging the “nostalgia economy”.

This said, ways of versioning in the video game industry are wide and diverse, and should be integrated into a company’s strategy accordingly as a way to capture value during or long after a product is released. What do you think? In what other ways can developers and publishers capture value through versioning? Do you have a better example of an industry where versioning is an expanding reality? Let us know in the comments!

 

Please rate this

The gaming industry under the magnifying glass – the next step towards growth

10

October

2016

5/5 (7) We all know that the gaming industry is booming, more and more people start playing video games and contribute to the industry revenues. Companies have raised $91.8bn in 2015 which is expected to increase by a compound annual growth rate of 6.6% by 2019. But where exactly is the money coming from? Are current gamers spending more, or is the market expanding?

The US has been the backbone of the gaming industry for decades and has been responsible for approximately one fifth of the industry revenue in the past couple of years, but its growth is slowly coming to a halt. An annual growth rate of 4.4% (mainly driven by smartphone) is still nothing to dismiss, but by no means does it account for the huge leap the industry is expected to take.

According to forecasts, the market share of both PC and TV/console gaming are expected to shrink a few percentage points, which isn’t exactly an indicator of industry growth. However, smartphone gaming should be able to overtake PCs for the first time in 2016, which suggests a shift in consumer behavior.

What is then the driver of this expansion?

In 2016, 58% of growth of the global market is expected to come from none other than the Asia-Pacific region. China will contribute around $24.4bn, more than twice as much as 4 years earlier ($10bn in 2012). Since PC revenues will likely continue to diminish, the source of the growth will be smartphone gaming.

It is clearly visible that smartphone gaming must be taken seriously. Some companies, such as Activision Blizzard have seen this coming and took steps to solidify their position in the smartphone scene. This was partly done by acquisition of smaller developer companies (the biggest notable example is King, developer of Candy Crush Saga, obtained in early 2015 for $5.9bn) and by focusing development effort on their cross-platform title, Hearthstone: Heroes of Warcraft. Other, largely unknown companies are also heavily investing in mobile. Tencent Holdings Ltd., a Chinese tech giant valued at $197bn (owner of the massively popular MOBA, League of Legends) has been aggressively investing in mobile in the Western hemisphere, making it the fastest growing part of its business.

We must also not forget about the silent winners. Apple is collecting a royalty fee after every single app purchase or microtransaction on the AppStore, making serious bank for the company. The revenue acquired by Apple this way is so immense that in 2015, it had surpassed that of Electronic Arts – publisher of the popular PC shooter franchise, Call of Duty and any Star Wars games.

Microsoft has also been collecting a good amount of buck through its console platform, producing an even higher increase in revenue than Sony. This is especially interesting, since it has only sold 18 million Xbox Ones in contrast to the Playstation 4’s 40 million.

Perhaps what’s even more important than plain numbers, is the fact that the gaming industry is currently undergoing some fundamental changes. Complementary sources of revenue have opened up with the increasing popularity of esports and games are becoming more of all-around entertainment franchises rather than single game titles. Hundreds of thousands of enthusiasts watch the biggest gaming events and look at sponsored content and ads. This allows gaming companies to create a market for everything from esports event tickets to team jerseys and merchandise.

What do you think the next step will be? Will mobile continue to dominate? How will the social factor of games contribute? How do you think VR and other emerging technologies will contribute to the industry? What should companies focus on to make sure they don’t fall behind?

 

Sources:

http://revenuesandprofits.com/how-microsoft-makes-money-understanding-microsoft-business-model/

http://vgsales.wikia.com/wiki/Video_game_industry#cite_note-bigfish-52

http://www.cnbc.com/2016/04/22/have-we-just-found-out-how-bad-xbox-sales-are.html

http://www.ibtimes.com/ps4-vs-xbox-one-close-40-million-playstation-4-consoles-have-been-sold-2013-launch-2361021

http://www.pocketgamer.biz/list/62773/top-50-mobile-game-developers-of-2016/entry/10/

http://www.pocketgamer.biz/list/62773/top-50-mobile-game-developers-of-2016/entry/8/

http://www.pocketgamer.biz/news/62233/activision-blizzard-to-buy-king-for-59-billion/

http://www.theesa.com/wp-content/uploads/2015/04/ESA-Essential-Facts-2015.pdf

https://newzoo.com/insights/articles/game-revenues-top-25-public-companies-14-2015/

https://newzoo.com/insights/articles/global-games-market-reaches-99-6-billion-2016-mobile-generating-37/

Please rate this

Amazon Prime just got even better

4

October

2016

5/5 (1) Just this week Amazon and Twitch announced that you can now link your Amazon prime account to your Twitch account and you will receive all the benefits of a premium Twitch account. For those who are not familiar with these platforms and the pricing models they offer, here is a brief summary:

Amazon has a premium membership that is $99 per year in the US and 49€ in Europe. This membership gives you free express shipping on Amazon and also access to Amazon Video, which can be compared to Netflix.
On the platform Twitch, people can live stream when they play games and others can tune in to watch them. The platform is very popular for e-sports and reaches 45 million viewers every month. Twitch also offer a premium membership that gives you access to ad-free view. By linking both services together, Amazon also added discounts for certain games and free in-game content to the premium membership.

Since Amazon acquired Twitch in 2014 they have not made any strategic move to combine Twitch and Amazon services and industry insiders were curious how a potential strategy will look like. Now Amazon has made its first move as described above and opened premium services of Twitch to its Prime subscribers. Considering that the premium tier at Twitch costs €8.99 (or$8.99 in the US) per month and Amazon Prime only costs €4,08 ($8.25 in the US) per month, the new offer is an excellent deal and adds another argument to Amazon Prime

In a recent move, Youtube has launched a new service dedicated to gamers that is called Youtube Gaming. With this service, Youtube positioned itself as a direct competitor to Twitch. Under these circumstances, Amazon’s move to unify its services can be seen as a direct reaction to the launch of Youtube Gaming. In addition to that, Twitch also announced that creators can now upload content directly. Before that, creators always had to live stream their content.

It remains interesting to see what Amazon has planned for the future. A possible option could be to fully integrate Twitch within its Amazon Video platform. Another thinkable option would be to expand Twitch and use its young and very active community to build a potential rival to Youtube. An advantage of Twitch here might be that it has far more experience with freemium models for its viewers, which in the end makes it more interesting for creators. For instance, it is possible to subscribe to a creator for a small fee to support him and parts of the revenues from the premium tier also go to the creator. Youtube Red, the premium subscription for Youtube, that costs $10 per month in the US, was only announced less than a year ago and is only available in five countries as of now.

What is your opinion on Amazon’s strategy? Are they doing it right? Or should they rather focus on international expansion for example, such as Netflix does? I look forward to seeing your opinions in the comment section!

 

For more background on the market of videos, you might also check out our technology of the week blog post here.

Twitch’s official announcement

Please rate this