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V7.20 Patch Notes | IMAGE: TENCENT IMAGE: V7.20 PATCH NOTES | NOTES PATCH V7.20 JULY 2020 REPORT MICROSOFT, TENCENT AND MORE BIG TAKEAWAYS PAGE 3 A quick summary of what stood out to us TABLE OF TRENDING PAGE 4 Trends we saw in the past month and the impact we expect them to have BRAND ACTIVATIONS PAGE 9 Interesting activations from some nonendemic brands OTHER IMPORTANTS PAGE 12 A hodgepodge of information from data to missteps PAGE 2 BIG TAKEAWAYS Powerhouse brands are making big moves to solidify their future in gaming. Nonendemic brands continue to look for ways to create in-game experiences. Even the biggest names in gaming and politics aren’t immune to criticism or Twitch bans. JULY 2020 More apparel brands are seeing the opportunity to JULY 2020 attach themselves to the gaming industry. IMAGE: NAUGHTY DOG JULY 2020 JULY 2020 PAGE 3 TRENDING NO.001 SECTION WHAT’S INCLUDED A collection of new and interesting things that caught our attention last month. IMAGE: THE WALL STREET JOURNAL MICROSOFT SHAKES THINGS UP IMAGE: S0APY WHAT HAPPENED WHY IT MATTERS With the next generation of consoles on the horizon, Microsoft While Microsoft's retail locations were not nearly as successful as Apple's, it 001 is making major organizational shifts. All of Microsoft's physical was surprising to see them close before the release of the Xbox Series X. NO. retail stores have closed except for four locations that were Mixer closing was even more shocking. Microsoft made waves in the renamed to "Experience Centers." Then we saw the end of livestreaming industry by signing Ninja, Shroud and other prominent talents Microsoft's livestreaming platform Mixer and the beginning of a to exclusive contracts. Those moves didn't have the desired impact as both partnership with Facebook Gaming. Both of these moves come Facebook and YouTube surpassed Mixer in watch time. While major at a time when Microsoft continues to place emphasis on its personalities will be fine, there are many streamers who are now left without cloud gaming and Xbox Game Pass. a platform and have to start rebuilding their communities from scratch. It is clear that Microsoft envisions Xbox's future as a digital platform. TRENDING PAGE 5 IMAGE: KENA BETANCUR THE LAST OF US II BREAKS BARRIERS AND RECORDS WHAT HAPPENED The Last of Us Part II was one of the most anticipated games of 2020. Even after delays and leaks, it became the fastest-selling PS4-exclusive game of all time. The narrative experience of The Last of Us II pushes boundaries many games have been afraid to touch. It deals with intense violence, LGTBQ relationships and moral dilemmas. Some of these topics, specifically LGTBQ and gender issues in the game, have led to backlash from some users, including review bombing the game on Metacritic and harassing Naughty Dog employees as well as the game’s voice actors on social media. WHY IT MATTERS It was great to see the overwhelmingly positive response in both sales and real reviews after early 002 leaks created the commotion they did. As we’ve detailed in past reports, the gaming community NO. can be equally supportive and critical. When a vocal minority did its best to dissuade other gamers from buying the game, the rest of the industry made a statement about why games like this are important, not only from a storytelling and quality standpoint, but also when it comes to social issues. For many young gamers, games are one of the primary ways they consume content and socialize with others, so hopefully this response was encouraging to other developers, that success doesn’t always come from playing it safe. TRENDING TRENDING IMAGE: NAUGHTY DOG PAGE 5 TENCENT GAINING MOMENTUM WHAT HAPPENED Tencent, the Chinese-based gaming giant, is planning on building a city. The city will be roughly the size of Monaco and will have no cars. It has been a strong few years WHY IT MATTERS for Tencent as it has made major investments across the gaming industry. Most Tencent doesn’t have nearly the same name recognition in the U.S. that other major players like recently, they have been quietly testing a new streaming platform called Trovo, Microsoft or Sony enjoy, but make no mistake, they are one of the most influential game which will focus on mobile gaming. They also announced that PUBG Mobile made companies in the world. While others spent time developing public-facing platforms, Tencent $226 million in May, continuing its streak as the highest-grossing mobile game in worked in the background to monitor the evolving landscape and then made a series of the world. A city, a new streaming platform and the most profitable mobile game in well-timed acquisitions to solidify their place in the future of gaming. Currently it’s the majority the world are as good a sign of momentum as we’ve seen in recent memory. investor in Riot Games, 40% owner of Epic Games, along with many other prominent developers and publishers. They’ve also identified the value in the mobile game world where others have failed to break through. If this activity is any indication of things to come, their future looks bright. IMAGE: TENCENT NO. TRENDING 003 IMAGE: PUBG IMAGE: TROVO PAGE 7 ALSO NOTEWORTHY 07. Riot partners with Crisis Text Line Mental health is important for everyone. Riot Games ALSO NOTEWORTHY partnering with the Crisis Text Line is a step in the right direction for the gaming community and is yet ALSO NOTEWORTHY another brand example of cause-focused efforts. 08. Twitch clamping down on copyrights You know who really loves copyright strikes? The music industry. The latest clampdown is sure to result in more licensed music provider brands aimed at providing content creators with legal options. 09. FB buys Ready at Dawn studio After partnering with Mixer, Facebook purchased IMAGE: DR DISRESPECT Ready at Dawn which will be absorbed into their Oculus studios. The social media giant is serious about gaming. 04. Dr Disrespect banned from Twitch Twitch suddenly banned one of its most prominent streamers with the only explanation being a violation of their terms of service. The more detailed reason is still a mystery. 05. Discord moving beyond gaming IMAGE: GETTY IMAGES Discord announced plans to make the new user experience less focused on gaming and more welcoming to various interests in a move to expand its userbase. 06. Acer debuts energy drink It seems like everyone is looking for ways to expand revenue streams within gaming and the computer manufacturer’s latest product seems to fall somewhere between innovation and desperation. PAGE 7 IMAGE: TECH-CRITTER BRAND ACTIVATIONS NO.002 SECTION WHAT’S INCLUDED Nonendemic brands that decided to get in on the esports action last month. IMAGE: HYPERX MANCHESTER INTERNATIONAL FESTIVAL IN FORTNITE ACTIVATION NO. 001 IMAGE: VIRTUAL FACTORY WHAT HAPPENED As part of a new series called Virtual Factory, the Manchester WHY IT MATTERS International Festival (MIF) used Fortnite’s Creator Mode to develop a virtual art gallery. Your Progress Will Be Saved is the first part of the This is equally important to the MIF as it is to Fortnite. For starters, an organization like the MIF series and allows users to interact, admire and be inspired as they recognizing the importance of meeting younger audiences where they are is a very smart move. Not move through the many installations of the experience. MIF has also only is this a guilt-free experience people can enjoy during COVID-19 times, but it’s also something contracted a number of other artists to create similar digital everyone can enjoy, even if you’re not close to the more traditional, physical locations. For Fortnite, experiences as they continue to expand their offerings. it’s another notch in its expanded metaverse belt, as it continues to position itself not just as a place to play games, but also a place to socialize with others and experience new things beyond battle royale. In addition to this activation, Fortnite also hosted an Inception watch party. PAGE 10 OTHER BRAND ACTIVATIONS HYPERX PARTNERS WITH CHAMPION FOR NEW APPAREL In its first international apparel drop the gaming accessories brand has partnered with Champion as it continues its goal to market itself as a lifestyle brand to gamers of all types. NO. 002 IMAGE: GUCCI GUCCI JUMPS INTO ESPORTS WITH NEW FNATIC WATCH Not to be outdone by Louis Vuitton, which has had a NO. 003 number of recent gaming and esports activations, Gucci has partnered with the FNATIC organization to create its latest accessory. IMAGE: HYPERX PAGE 11 OTHER IMPORTANTS NO.003 SECTION WHAT’S INCLUDED The other things we didn’t think deserved their own section but do deserve your attention. IMAGE: CD PROJEKT RED MISSTEPS HERE ARE SOME THINGS THAT DIDN’T QUITE GO AS PLANNED LAST MONTH. Cyberpunk delayed...again Riot executive resigns We promise, this is the last time You just can’t say that PS5 design trolled on Twitter POTUS Twitch suspended What do a binder, air purifier and router have in common? Nobody is above the Twitch IMAGE:PARKER ORTOLANI PAGE 13 IMAGE:CD PROJEKT RED BY THE NUMBERS TOP GAMES TOP STREAMERS TWITCH (MILLION HRS) TWITCH (MILLION HRS) LEAGUE OF LEGENDS - 142.9 GAULES - 20.1 FORTNITE - 110.1 AURONPLAY - 8.4 GTA V - 99.8 XQCOW - 8.2 COD: MODERN WARFARE - 86.3 BEYONDTHESUMMIT - 6.6 ESCAPE FROM TARKOV - 77.2 BLASTPREMIER - 6.4 CS: GO - 75.5 DREAMHACKCS - 3.6 VALORANT - 55.4 PESTILY - 3.5 DOTA 2 - 40.9 NICKMERCS - 3.4 MINECRAFT - 38.7 LVNDMARK - 2.5 WORLD OF WARCRAFT - 32.2 DOTA2RUHUB - 2.5 SOURCES: NEWZOO, ESPORTS OBSERVER DATA THROUGH 6.30 PAGE 14 ON THE HORIZON XBOX GAMES SHOWCASE On July 23, Microsoft will show off many of the upcoming and in-development games such as Halo: Infinite and also (hopefully) give us a little more information around the Xbox Series X console.
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