Is Gaming Pandemic Proof? A COVID-19 Special Report July 2020 Gaming’s Current State Of Play: When live sports and entertainment was no longer an option, gaming exhibited a natural resilience and agility as esports teams continue to compete in competitive leagues across multiple game titles. Brand activations and game announcements continue to reach broad audiences through innovative formats. Gaming’s inherent digital breadth and platform flexibility continues to drive creative solutions for brands and sports properties, while growing its relevance to fans around the world. Record-Breaking Active Esports Sports & Entertainment Fundraising & Engagement Leagues & Teams Engagement Solutions New Opportunities Gaming Industry Growth Is A Side Effect Of COVID-19. Total subscribers to Game Pass surpassed 10 million, with a +130% increase in multiplayer engagement since lockdown. Sales of Switch consoles +24% YoY, with the launch of Animal Crossing: New Horizons, selling 13.5 million copies to date. A popular PC gaming platform hit its all-time high concurrent user count at +20 million in March. In April alone, players spent a combined 3.2 billion hours in-game time. Source: Microsoft, Nintendo, Steam, Epic Games Gaming Is Filling Voids In Social Life And Outlet For Escapism. +71% +83% +75% Increase in gaming conversation: Increase in Twitch hours watched YoY: Overall increased gaming +38% new users worldwide; Twitch hours watched increased 67% in Q2; participation in March during +81% increase in gaming YouTube Gaming increased 36% in Q2, peak hours conversation in the US reinforcing its role in socialization & connection As gaming participation increases across all forms of engagement—watching, playing, purchasing and conversation— gaming is becoming more established as a mainstream experience, providing unique opportunities for brands and fans Source: Twitter, Streamelements, Verizon Gaming Is Driving Innovation In Virtual Experiences. College students built campuses in Star Wars hosted a live talk show Travis Scott’s concert within Fortnite Minecraft to replace lost graduation in Animal Crossing with guests joining featured experiences not possible in the ceremonies as avatars real world to 12M “attendees” The distinctive virtual world of gaming is proving to be a creative playground for celebrities, gamers, brands— anyone and everyone—to stretch the boundaries of what’s new and innovative Source: Epic Games Sports & Music Turning To Esports To Fill Cancellations. Nearly every major sporting league has NASCAR and F1 replaced live races Celebrities have joined with gaming created gaming tournaments featuring with simulation games, with NASCAR’s platforms to stay active and relevant, such players & teams—and fans iRacing Series reaching 1.3M viewers as Twitch Stream Aid for COVID relief The accelerated participation in esports has flattened the curve for brands, realizing true business value from the sport and unique access to its fanbase Gaming Now A Leading Platform For Purpose-Driven Causes. Twitch has helped raise +$115M for 40% of the total donations on World Momentum, Merck and Twitch developed 300 different charities Health Day came from YouTube gamer an 8-hour livestreamed fundraising event Jacksepticeye who raised nearly $659K for World Multiple Sclerosis Day, featuring on his channel custom content with Twitch influencers & guest speakers from the MS community Brands are leveraging the platform to create ownable and measured purpose-driven charity events that stand out among brands searching for ways to be authentic and contemporary Although gaming and esports have proven to be somewhat pandemic-proof, the in-person, live experience ultimately cannot be replaced. Attending major conventions like PAX or TwitchCon or the League of Legends Split or Overwatch League Finals remains the zenith of many fans’ engagement with the sport. Equally important, as these industry events become more ingrained in culture, the entire industry moves forward. Brands who will drive real business value from participating in gaming and esports in the future are the ones who can strike the right balance between live and online experiences. Gamers Need The Live Experience, Too. Among Global Sports Fans, Festival and Convention Goers, Esports & Gaming Fans: Are the most likely to return to live events the quickest, and the most likely to travel Feel live esports events are the most-missed experience Are the most receptive toward brand sponsorship and most likely to support a sponsor Are the most likely to find streaming events, webcasts and virtual alternatives appealing Source: Enigma Research 2020 COVID Study How Can Brands Begin To Win Today? Create Live Gaming Events & Custom Content 1 such as Marathon Streaming Events, Bespoke Branded Tournaments, or Fundraising Content Align with Publishers & Gaming Platforms on 2 Activations around their Tentpole Moments, such as New Game Releases and Game Stream Events Partner with Esports Leagues, Tournaments and 3 Teams to Activate Around Broadcast & Content, Drive Social, and Create Partnership Assets Thank You Want to know more? Drop us a line [email protected] Image Sources: Pearce Anderson / The Verge, Animal Talking, Rolling Stone, NBA 2K League, NASCAR iRacing, Twitch, CNN Copyright © Momentum Worldwide. All rights reserved. This document, and its contents, are confidential and may not be reproduced or transmitted without the written permission of Momentum Worldwide..