Activision Company finally was open about their vision for esports industry. Analysts were particularly interested in how Activision plans to incorporate its vision in order to make more money from new esports league. The company has been in the industry since 1974 and it was the world’s first independent distributor and developer of video games for gaming consoles. Since it is in the industry for thirty-nine years, the company has thirty-eight offices and studios worldwide. There is no surprise that everyone is eagerly waiting to see what Activision has planned for new esports league.
Many prominent sports personalities are currently buying into the potential of such competition. For instance Patriots owner Bob Kraft as well as Mets executive Jeff Wilpon are greatly interested in this industry since they have recognized what great potential the industry offers. Esports industry has been emerging on the scene rapidly in past few years, so there is no surprise most prominent sports personalities are interested in expanding their business into this industry. However, Wall Street isn’t quite sold on whether this industry is one of those business areas which will make great money in the near future. On the other hand, analysts seem to have a different opinion in comparison to Wall Street, and they are confident that the industry will bring great profit in the future.
Activision’s Financial Plans for the League
Kraft and Wilpon were among the first owners in the Blizzard’s upcoming Overwatch eSports league, so Wall Street analysts took an advantage to ask them some questions regarding plans for the league. League management gladly spoke about revenue-sharing arrangements between team owners and the company. They also stated that there be a pool of shared league revenues which will be based on money generated from league sponsorships and media rights. The company will take half of the money while the teams will split the rest. The team that will be participating will have an opportunity to make more money from ticket sales.
The company also highlighted how hard it is trying to improve esports industry to look more like traditional professional sports leagues. Further, the company will work on establishing greater benefits, minimum salaries and greater bonuses for players. It will provide greater security and stability in order to attract best esports talent together. CFO of the company Spencer Neumann was confident that the company’s new financial plan will bring more and more gamers to the new league.
Activision’s Fan Base is More Than 30 Million Players
Activision has a wide number of player from all over the world, so that is a huge audience to be able to have partners, sponsors and advertisers for. The company’s CEO Bobby Kotick didn’t provide any additional information about a sponsor and media interest in the league at the moment. The company seems not be in a great rush to make from the league, so we have t wait and see what investors have planned in the following months. We are also eagerly waiting to see how Activision plans will be incorporated into the league.