COVID-19 is presenting challenges and opportunities alike for gaming companies. Although gaming is an obvious isolation pastime, like any other industry their business has been disrupted. Live esports events are being cancelled but, at the same time, esports are uniquely well-equipped to continue remotely and have even been stepping in to fill the void left by the cancellation of traditional sporting events.
This issue gives an overview of how COVID-19 has been affecting the world of gaming and esports. We will be monitoring this closely over the coming weeks and providing further updates on interesting developments.
Surging player demand brings challenge and opportunity alike to the gaming industry
While countries go into lockdown and traditional retailers are struggling, online gaming is booming. Steam has seen a huge surge in active players peaking at 7 million and concurrent users totalling 22.67 million this week. Both were all-time highs. To give context, before February 2020 Steam’s all-time peak of concurrent users was just over 18.5 million users.
As demand for videogame streaming is increasing, the major gaming platforms are struggling to keep up with Microsoft, Nintendo and Playstation’s networks experiencing downtime and issues.
Although events such as E3 have been cancelled, developers have also joined the party to ensure that gamers can keep playing by making games such as Assassin’s Creed Odyssey available for free between March 19 and 23 2020.
Mobile games that rely on augmented reality and players exploring the (real) outside world have had to adapt quickly to life in lockdown conditions. Niantic’s Pokemon GO has been modified to encourage people to stay indoors. The game now promotes in-game purchases, which draw Pokémon to the player or allow users to purchase Pokeballs, both measures designed to discourage users from venturing outside. The developers of Harry Potter: Wizards Unite have made it easier for players to progress through the game from their sofa. Regular events and player meetups have also been cancelled and in-game notifications remind users to ‘play inside!’.
Another interesting development in the face of COVID-19 is the recent move from regulators to limit game time for minors. These measures had been implemented or planned before COVID-19, but their impact will no doubt be amplified now that they coincide with lockdowns and the closing of schools around the world. For example:
In Kagawa Prefecture in southwestern Japan, the local authority has passed an ordinance that limits the game time of those under 18 years old to one hour a day. This comes into effect from 1 April 2020.
Last November China imposed a ban on those under 18 years old from playing games between 10pm and 8am. During the week, minors are only allowed a game time of 90 minutes each day which extends to 3 hours on weekends and public holidays. This is reminiscent of South Korea’s “Cinderella Law” passed in 2011 which prevents those under 16 years of age from playing online games between midnight and 6am.
Traditional sport dives, esport thrives
Across the globe, traditional sports and leagues including the Champions and Europa Leagues, Euro 2020 and, most recently, the Olympics have been cancelled, suspended and postponed. Esports is no exception with live events worldwide facing the same fate. However, this appears to be less of a complete roadblock to esports and more of a hurdle that is being surmounted by returning to their roots and holding tournaments remotely in the face of lockdown and social distancing. The League of Legends European Championship which was initially slated for Berlin, for example, has moved its tournament online.
People in isolation are naturally searching for new home entertainment options, and with no traditional sports on offer, esports are seemingly filling the live competitive void. They are attracting a wider audience, with an uptick in esports viewership across most mainstream platforms including; Twitch increasing by 15%, Youtube gaming increasing by 15% and Verizon US reporting a 75% increase in gaming at peak hours. As more countries move into tighter lockdown, it is feasible that this trend of increasing esports popularity will continue on an upward trajectory, particularly as more people look to gaming and related entertainment.
Traditional sports are also looking to capitalise on the influx of engagement with esports. F1 has taken pole-position in this move online and has notably put much of its social media and marketing focus into its online offering. Last weekend, it held the inaugural virtual Bahrain grand prix. A host of F1 drivers and celebrities were in seats on the virtual grid including Lando Norris, Nico Hulkenberg and Sir Chris Hoy.
It will be interesting to see how this online offering will stack up against its real-world counterpart, and against the esport heavyweights and the extent to which other sports follow suit.
Epic house party
Like esports, social media usage has exploded since the virus outbreak. One app that has stormed into prevalence is the ironically named House Party App, which, in short, is a live video streaming platform where you can also play games. It is currently sitting at #2 on the App store chart (behind Disney+ which is understandable!). The app is run by Life On Air Inc., a subsidiary of Epic Games. This shows the benefits of gaming companies diversifying across all platforms rather than just traditional consoles.
