TWiG #293: Twitch Loses $1B while Apple Admits the Truth about VR
Aug 2, 2024
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Eric, a seasoned World of Warcraft player, and Laura, a mobile gaming analyst, dive into Twitch's staggering $1 billion losses. They dissect Scopley’s strategy with a forgotten franchise and explore the complexities of game monetization. Eric showcases his comedic flair while discussing engaging gaming experiences versus passive entertainment. The duo also touches on the implications of unionization in the gaming industry, shedding light on labor relations and trends that are shaping the future.
Monopoly Go illustrates the financial success of digital adaptations, emphasizing the importance of innovation in revitalizing classic board games.
The wave of unionization efforts within Microsoft highlight growing concerns over job stability and fair treatment of workers in the gaming industry.
Twitch's ongoing operational struggles and workforce cuts raise questions about its long-term viability within Amazon's broader strategic ecosystem.
Deep dives
Monopoly Go's Success and Financial Impact
Monopoly Go has achieved significant financial success, surpassing 3 billion in revenue, which has greatly pleased Hasbro. The growth in digital gaming attributed to Monopoly Go has also led to positive stock performance for Hasbro, highlighting the importance of digital adaptations of classic board games. CEO Chris Cox announced an expectation of generating approximately $105 million in revenue for the year, although some experts consider this a modest figure relative to the overall market potential. Despite the success, discussions arose about whether Hasbro should invest more in developing its own games instead of relying solely on licensing agreements.
Unionization in Microsoft's Game Divisions
Several divisions within Microsoft are experiencing a wave of unionization efforts, including workers from notable studios such as Bethesda and Blizzard. This trend has raised questions about how it might affect the gaming industry, particularly in terms of job security and fair treatment of QA workers. The unionization movements reflect growing concerns about job stability and respect within the workforce. Discussions centered around whether this shift could lead to better working conditions and if it signifies a larger industry trend.
Zynga's Game of Thrones Puzzle RPG Challenges
Zynga's new Game of Thrones Puzzle RPG featuring Kit Harington has sparked conversations about its branding and marketing approach. The game, which ties into the broader Game of Thrones universe, has faced criticism for lacking clear branding connection to the now-popular House of the Dragon. Observations were made about missed opportunities in marketing strategy that could have better leveraged the current relevance of the IP. Additionally, concerns about whether the game will attract a loyal player base amidst a competitive market were highlighted.
Twitch's Ongoing Struggles and Market Position
Twitch continues to face significant operational challenges as it struggles to achieve profitability since its acquisition by Amazon. Reports indicate that Twitch's workforce has been cut substantially while viewership metrics are declining, suggesting potential long-term sustainability issues. Despite being a leading platform in live streaming, its inability to effectively monetize the vast user base has been a major point of concern among industry observers. Insights revealed about Amazon's overall strategy imply that, while Twitch may be hemorrhaging money, its integration within Amazon's broader ecosystem might afford it a prolonged lifespan.
Evolving Landscape of Game Licensing and IP Use
The podcast discussed various aspects of game licensing, especially highlighting how brands navigate revenue sharing agreements and IP partnerships. A distinction was made between promotional partnerships and traditional licensing, emphasizing the complexity of revenue models that can include marketing costs. Some examples cited involve how established IP, like the Cybertruck's cameo in games or partnerships with popular franchises, can lead to different revenue expectations based on the strength of the platforms involved. The conversation underscored the importance of strategic IP management as a significant factor influencing revenue in the gaming landscape.
Jen and Phil close the book on licensing…or do they…while Eric closes the book on the 500 World of Warcraft gear score. Laura looks at Scopley’s new global forgotten franchise, and the team examines mounting Twitch losses. Eric makes 10 x new faces in the episode.
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