Rovio Exec Explains How Partnerships And Tech Help ‘Angry Birds’ Fly

Rovio is a game company that flew to new heights in the merchandising business, successfully launching a slew of tie-ins to its bestselling mobile game franchise from the very early days. With a Hollywood feature film hitting the big screen on May 20, Rovio and Sony Pictures are pulling out all of the stops.

In total, more than 100 partners worldwide are coming together to deliver $250 million in promotional value to both The Angry Birds Movie and the new Angry Birds Action! mobile game. For example, McDonald’s is launching a themed Happy Meal program to 120 markets worldwide, which will include exclusive codes for the pinball-themed game (which ties into the movie).

From interactive movie posters embedded with game codes to an in-theater sound technology that unlocks exclusive content, Rovio and Sony Pictures are letting the birds fly early. Wilhelm Taht, executive vice president of games at Rovio, explains how the new game and movie will tap into its global fan base in this exclusive interview.

How do the BirdCodes work?

We’re adding an augmented reality experience to some of the movie partners through BirdCode technology, where you scan codes provided by partners like LEGO, H&M, McDonald’s, and Pez. They’re pushing out both the Angry Birds Action! game and the movie over the next month.

How many codes are out there?

Over a billion BirdCodes are going out into the wild over the next month. We’re taking a big partnership approach that’s in tune with the movie itself. After you get to Level 2 in the game, you can start entering codes.

What do these codes unlock?

There are more than two dozen unique BirdCode experiences that have been developed within Angry Birds Action!. For example, each of the six LEGO Angry Birds play sets come with their own different augmented reality mini-game, which is unlocked by scanning the BirdCode found on the last page of the building instructions.

You can play a Whack-a-Pig mini-game by scanning codes on McDonald’s Happy Meals, drink cups, wrappers, and tray liners and also take selfies with characters from The Angry Birds Movie.

Designs on H&M apparel include BirdCodes that unlock an endless runner mini-game starring Red, Chuck, or Bomb. Virtual Pez candies can be unlocked in the game by scanning codes on Angry Birds Movie PEZ dispensers. Even The Angry Birds Movie posters have codes on them.

How are you working with retailers?

There’s a real-world scavenger hunt through retailers like Walmart and Toys ‘R’ Us, which will have codes on display. Scanning them unlocks additional power-ups and a different character (Red, Chuck, Bomb, or a Pig) that provides a key to a mystery box in the game.

What separates this Angry Birds game from anything else out there?

It’s a pinball arcade game that’s the first game featuring the movie characters in full 3D glory. From a storyline and folklore point of view, takes place before the Piggies have arrived at Bird Island.

How does the game connect to the big screen film?

At the end credits, the game prompts you to open up Angry Birds Action!. There’s an audio watermark that unlocks and opens up the Piggy Island level. It also unlocks an alternate ending to the movie. Normally you’d see something at the end of the credits, but we’re doing that exclusively in-game. You don’t need any online connection to make this “movie magic” work.

Will this audio technology also work later with the home entertainment version?

It will work later for the DVD and Blu-ray, but we may have some additional tricks up our sleeves for the home edition.

Who are you targeting with these activations?

We’re catering to diehard fans with some of these things, providing something unique and fun for fans of the movie and the Angry Birds.

What’s the reception been like since launching the game?

It’s at the top of the charts across the globe and it’s been rated high by users worldwide.

How are you working with Sony Pictures in cross-promoting the new game and film?

Sony’s promotional program is directed towards the movie, as it does with “triple-A” Hollywood blockbuster movies. The game has been a unique aspect of the whole program, and has received a lot of additional spend from marketing partners.

How does the licensing of the new movie characters fit into the overall merchandising we’ve seen from Angry Birds for many years?

We have a big licensing program that’s been running for the movie for a long time already. There are quite a bit of licensees out there. There’s a huge number of licenses working on movie assets for the Angry Birds brand, as well. The new birds have arms and legs, so consumer products will look and feel different than they used to.

We just saw the low-budget Ratchet & Clank movie make less than $5 million in the U.S. in its opening weekend. What are the challenges of translating a game for the big screen?

I’m not going to comment on other movies. But in general, video games have been a challenging thing to take to the big screen for a wide variety of reasons. One of the biggest challenges is the narrative has not always been fantastic in video games, and it’s challenging to translate that into an interesting story that runs for 90 minutes. Also, it’s oftentimes a very hardcore story. Big video game brands are often weapon-aggressive and have a hardcore background that can be challenging to bring to big screen.

What do you feel Angry Birds has going for it on the big screen?

We have over 3.5 billion downloads of the franchise and over 100 million active players worldwide. The movie is a very tongue-in-cheek, humorous, four-quadrant, family-friendly film. Telling the origin story of how this struggle between the pigs and birds began has been resonating on a global basis. We’re not taking anything as given. Cinema is a challenging business, and we don’t know how things are going to go. We do know nothing has entered cinemas worldwide like Angry Birds.

Everything We Learned About ESports At [a]list summit

One of the highlights from last month’s [a]list summit in Seattle was Activision Blizzard senior vice president Mike Sepso discussing the growth and evolution of eSports, which has gone from a small level of competition to a multi-million dollar business enterprise in just a few years’ time.

Credit that to the “millions of passionate fans who really love and engage with this as a content type.” He also credits the “personalities behind the sport,” who help keep fans engaged as they tackle a number of games, including popular favorites like Counter-Strike: Global Offensive and League of Legends.

Sepso talked about the popularity of eSports, and how its reach was actually eclipsing other pro sports, including the NHL and Major League Baseball, and is almost on par with the NBA. Obviously, it still has some ways to go to catch up with the juggernaut that is the NFL, but that’s pretty impressive considering eSports has only been around for a few years.

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There’s still room to grow on the revenue front, as eSports only generated under $4 million for total annual revenue, which is small potatoes compared to other big sports. Still, Sepso noted big opportunities for brands and star players to step up and find support through sponsorship.

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In a panel discussing why eSports is at the nexus of consumer trends, Andy Swanson, vice president of eSports for Twitch, who compared eSports to poker, in that it’s based around a large community. Technology has been able to play a huge part in competitions, especially being able to watch them live.

Dan Ciccone, managing director of rEvXP, also had plenty to add, especially when it came to Pepsi’s recent eSports promotion with the Brisk brand. “I really applaud these brands, because they are working with us to back away from some of those traditional metrics that everyone in this room is held to, and they’re providing somewhat of a creative latitude to approach the space differently than they do traditional marketing.”

However, those approaching eSports should do it the right way, according to Swanson. “What you can’t do is just say, ‘I want to market eSports.’ It’s just too generic.”

The full panel can be found in the video below, and provides a great deal of insight into the success of eSports.

 

Ad Spending For Digital Programming More Than Doubles

We’ve seen quite a rise in original digital programming over the past couple of years — to the point where it’s ready to overtake regular television any day now. But a new report shows that its popularity translates to ever-higher spending. The Interactive Advertising Bureau (IAB for short) has reported (via The Drum) that ad spending on original digital video programming has more than doubled since 2014, with both advertisers and media buyers increasing investment by 114 percent in the past year or so.

The report, titled Digital Content NewFronts: Video Ad Spend Study, also pointed out that 68 percent of those polled feel that original digital video will be just as vital as original TV programming in the next three-to-five years. Considering digital video’s increasing reach over the past few years, that shouldn’t be too big of a surprise.

Out of those buyers that were polled, 63 percent intend to spend more on the digital video front, compared to 62 percent just spending on video. It also pointed out that they feel that digital video content has become a more important factor in the industry, with 44 percent of their budgets accounting for digital video, up from 38 percent two years ago.

Anna Bager, senior vice president of IAB, noted, “Marketers and agencies are telling us they clearly see great value in original digital video programming.

“This study demonstrates that the NewFronts has the ability to move ad dollars. Considering this year’s presenter line-up of top-tier, innovative media companies, and content creators, we expect that the event will inspire spending during the marketplace’s two-week period and beyond.”

The news comes just in time for the kick-off of this year’s NewFronts event, which takes place in New York from today through May 13. We’ll see what new trends get introduced on the video front in the days ahead.

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Activision Builds ‘Infinite’ Hype For New ‘Call of Duty’

After weeks of speculation, Activision finally laid the rumors to rest by revealing that a new Call of Duty is coming this fall… and this time, it will take players to the reaches of space.

The publisher revealed a trailer for the game Call of Duty: Infinite Warfare today, introducing a new futuristic setting to the series (even more so than last year’s Black Ops III), as players will be able to head into space to do battle with a faction referred to as The Settlement Defense Front.

The company has already begun to build massive hype for the sequel, and is expecting it to sell into the millions, as previous entries in the Call of Duty series have done. To entice hardcore fans to pre-order, Activision is offering a free copy of the high-definition remastered version of the best-selling 2007 game, Call of Duty 4: Modern Warfare to all those who pick up the game early.

Infinity Ward, the game’s developer, took to Twitch earlier today, to discuss some of the details of the sequel and answer questions. However, this just continued the hype that started over the weekend, which began with hints included in the Nuk3town multiplayer map in Black Ops III. The inserts included propaganda images from Infinite Warfare, and snippets of footage featuring a dangerous new baddie on the horizon, as well as Lt. Reyes (a character looking for assistance in battling the Settlement) featured on video monitors throughout the level. Many Call of Duty fans made note of the footage, anticipating the sequel’s official announcement this week.

In addition, Activision took on a clever campaign using Facebook Messenger, where users could interact with a chatbot acting as Reyes, who asks them to crack a special code in order to get assets from Infinite Warfare. It was a big hit, with many commenting on social media about how assets could be unlocked, and how Reyes could grow annoyed if they asked too many questions. The campaign has been a huge success thus far, with six million gamers taking part in the promotion — indicating that chatbots could be a factor in future game promotions with other companies.

This is just the beginning of Infinite Warfare‘s promotion, as the game will receive a massive push leading into its release later this year with many events, including tie-ins with the forthcoming Call of Duty Championship, as well as a potential fan-based event that could be in the works this fall. Sony has also noted that Infinite Warfare will be playable at its booth at E3 next month, since Activision won’t have major presence on the show floor.

Call of Duty: Infinite Warfare releases on November 4 for Xbox One, PlayStation 4 and PC.

ESL’s Nik Adams Discusses Building A 24/7 ESports Network

ESL is ready to launch a 24/7 eSports channel next month called eSports TV, which will cover a variety of video game events and tournaments. Beginning with a roll-out in the Nordic and Baltic countries before heading West, it will no doubt be a major outlet for fans who can’t get enough of eSports-related events.

To get more insight in terms of what we can expect from eSports TV, [a]listdaily chatted with Nik Adams, senior vice president of sales for ESL, discussing topics from social media interaction to its eventual launch into other regions.

Nik-Adams-FormalWhat led to the decision of introducing a 24-hour eSports channel?

For ESL, the eSports channel is another distribution channel of our existing content. We’ve produced about 20,000 hours of original content in 2016, so there definitely is enough material to fill the channel. Our challenge is to curate it so it is appealing for the new audiences on TV, whilst our main goal is to create completely fresh and original content with the entry barrier low enough for those who just start getting into this amazing new sport.

What will be the basis of eSports TV? Will we see original programming and shows to go along with the competition coverage?

The base content will be the broadcasts of our core events and tournaments, as this is our main business that delivers the most interesting output. Our competitions and offline events in the ESL One, Intel Extreme Masters, and ESL Pro League circuits will take a big chunk of space. From there—and around these core products—we will start building original content. Longtime fans of eSports will be happy to know that eSports TV will also have a section with classic content from the past 15 years—ESL’s archive of premium eSports materials is huge and it’s waiting to be put to a good use.

As eSports TV develops and grows, what would you say is the biggest hurdle in getting the right partners on board?

The feedback from the market was incredible so far—even better than we expected, and we’re getting signals from regions that are very keen on getting ESL’s premium eSports content. It makes it that much easier when you consider that ESL is a global company with offices in all important regions: North America and all important European markets, but also places like Brazil, Australia, Singapore, China, Russia and India.  The plan is to (together with MTG) gradually roll out the channel into new territories. MTG brings decades of TV experience to the table, which makes them the perfect partner for us, but ESL also runs its own licensing department and we are very well connected in the space.

Is social media interaction with the channel being considered? 

This is something we’re very enthusiastic about, and we’re working on several ideas that will enable an easy, more natural viewer interaction. Things like second screen applications, for example, could be put into a great use at eSports TV. ESL is a company that’s constantly looking for new ways to connect with its core audience, so things like that are definitely on our radar. Right now, it’s all work in progress so I can not share too much about it just yet.

Will programming from livestreaming events online eventually make their way to the channel?

Livestreaming content will make its way to be a part of eSports TV for sure, and there are a million ways in which the content from our events can be utilized for something more original we’re planning to build around our core products. We’re definitely very excited to try them all out and continue to deliver the world’s top eSports content around-the-clock, online and on TV. But the most exciting thing about eSports TV is that it’s a channel that will enable us to show our content to a completely new audience—not the one that already follows us online, but one that perhaps hasn’t cut the cord yet, or simply has a preference for more linear forms of broadcast. We’re already reaching over 100 million of eSports fans, but the ones we’re going to connect with through eSports TV will be largely new to us and our offering. This provides a massive amount of opportunities for us to create and distribute content that’s completely new, exiting and appealing to that new segment of audience.

Unity: Mobile Game Trends Dominated By Android And China

Unity Technologies has released its Games by the Numbers report, revealing mobile game trends from January to March 2016. During this time, 219,693 games made with the Unity engine generated over 4.2 billion installs, reaching about 1.7 billion unique devices. On average, this number of installs represents about 18.2 million new devices and 45.8 million installs each day.

Game Installs By Country

With a 30 percent increase in game downloads over Q4 2015, the mobile video game market is off to a strong start this year. Of the 4.2 billion game installs across 1.7 billion unique devices globally, China represented a staggering 31 percent, followed by the United States at 11 percent. Despite lifting the ban on video game consoles, China’s mobile game market continues to soar—particularly within the midcore demographic.

mobile game trends map

Android Vs. iOS

Representing 81 percent of mobile game installs worldwide, Android remains the preferred platform for mobile game trends, especially on Samsung brand devices. Although Samsung is most popular in the United States and Europe, the Chinese game market is dominated by local brands like Xiaomi.

When the top ten countries with game installs on Android and iOS are examined, China tops the chart once again in both categories. Chinese gamers prefer iOS over the Android platform, but only by 1.3 percent. Gamers in the United States prefer iOS by a considerably wider margin (10.8 percent), particularly on iPhone 5s and the iPhone 6. For those who play games on an iPad, statistics show that older models, particularly the iPad mini, are the most popular for downloads. In comparison to Android devices, iOS users upgrade to the latest version quickly. As a result, 7 percent of game installs on iOS occurred on devices running version 9.0 (released September 2015) or later.

ios vs android

The Future Of Mobile Game Trends

If Unity’s findings are any indication, the mobile game demographic continues to grow at a healthy pace—particularly in the Chinese market. Game engines like Unity and Unreal have become more accessible in recent years, allowing more independent video game developers to enter the market. Unity hopes that quarterly reports like Games by the Numbers will help these developers make sound decisions when it comes to their marketing efforts.

“It’s exciting to see the mobile games market continue to grow and thrive around the world, which translates into great opportunities for developers to bring their visions to life,” said John Cheng, general manager of Unity Analytics. “Unity has always focused on democratizing game development, solving hard problems, and helping developers succeed. To that end, we believe the in-depth information Unity Analytics provides, some of which is in this report, will help mobile developers prioritize and give them an edge as they make tough marketing and product decisions.”

VR ESports: The Combination Can Conquer

VR eSports? Now that VR (virtual reality) headsets are making their way into the hands of consumers, the important question becomes VR software. What will people chose to do with VR? The answer may be in one of the hottest areas of gaming—eSports.

The numbers for eSports are compelling, as Newzoo shows the market for eSports jumping to $463 million in revenues for 2016, growing 43 percent from last year. The audience is huge and growing, with Newzoo seeing 131 million eSports enthusiasts and another 125 million occasional viewers who tune in mainly for the big international events. Newzoo projects eSports to hit $1.1 billion in revenues by 2019, an enviable growth rate that VR would like to share.

There’s plenty of excitement in the industry about the connection between VR and eSports, as well as sports in general.

“At Newzoo we believe the biggest commercial potential for VR is on the spectator side,” said Newzoo CEO Peter Warman, speaking with [a]listdaily. “Watching an NBA game live from Jack Nicholson’s seat or walking around on the battlefield itself during a DotA2 or CS:GO final are two examples. In that respect eSports brings to VR what sports does. That appeals to a larger group of people than playing VR games itself. Vreal.io is a start up purely focused on in-game spectator VR. Very exciting stuff. There is at least an equal amount of people that would like to watch others play as play themselves.”

“It’s important to distinguish between the eSports gameplay and the eSports viewing experience,” Patrick Walker, the vice-president of insights and analytics at EEDAR, told Redbull.com. “One of the many use cases predicted for VR is the ability to attend live sports games remotely. In a similar way, there’s a lot of opportunity for VR to create a new type of viewing experience even using the currently successful eSports game genres. In addition, it’s very hard to predict what types of experience will emerge on new hardware after developers learn what works best. The mobile phone games of the mature 2016 market are very different from the available games in 2008. Therefore, I think there’s also a lot of opportunity for new eSports to emerge that are built from the ground up with VR gameplay in mind.”

That immediate potential for VR experience of sporting events (whether eSports or traditional sports) should be easy to realize, but the more complex issue would be creating VR experiences that are eSports in themselves. Does VR lend itself to the creation of an eSport? Are there benefits for eSports fans? Could eSports actually be a driver for VR adoption, considering the dedication of eSports fans?

“Yes, VR definitely offers potential for eSports,” said Joost van Dreunen, CEO of SuperData. “The audience for competitive gaming skews toward tech-savvy, enthusiastic gamers; the kind that will pay a premium for an enhanced experience. And already do we see Valve experiment with the way it displays DotA2 tournaments, providing a bird’s eye overview that is (more-or-less) interactive. Obviously it is early days, but the cross-pollination between eSports and VR is powerful.”

Chet Faliszek, writer and virtual reality evangelist at Valve, spoke with Fortune about a future for eSports through HTC Vive. “While we have The International and events where people are watching people play games, it is fun to watch someone play a VR game because they’re physically moving around in this space and making these motions that people can understand what’s happening,” Faliszek said. “It lets a broader group of people watch. It’s great spectator sport.”

That sounds promising, but Faliszek believes the prospects for the future are even greater. “VR eSports is first going to be about spectating,” Faliszek said. “VR changes the game so radically. You’d need to make a game built from the ground up, and we’ll see games made for eSports.”

Perhaps from Valve? That would seem to be right in line with the company’s interests.

RIGS Screen

Meanwhile, Sony has made it clear that eSports and VR are going to be an important combination for the upcoming PlayStation VR headset, which Sony is launching this October. Sony has been demonstrating RIGS, a fast-paced combat game where giant mechanical suits do battle in virtual arenas.

“A contender like Sony is also making in-roads by cultivating titles for its PSVR that build on the current vocabulary of competitive gaming,” van Dreunen noted. “A title like RIGS is an obvious example. However, while eSports may play a part in the adoption of VR, it is a convincing enough platform in its own right to reach mainstream acceptance.”

Marketers are likely to support VR eSports as a cutting-edge way to add an impressive sheen to brands. We’ve already seen great marketing interest in both VR and eSports, so combining the two should surely draw brand marketers like flies to high-tech honey. Major publishers looking to make a mark in eSports seem eager to oblige with VR eSports, as an interesting angle that can help launch a new eSport.

Watch for existing eSports to being to take advantage of VR in upcoming competitions. Providing a VR experience in addition to the excitement already surrounding a major eSports event would definitely get a lot of eSports fans looking into VR equipment. With mobile VR being relatively inexpensive, many fans could be experiencing eSports in a new way in the near future.

More elaborate VR presentations of existing eSports would require some serious work on the part of developers, but the results could be very compelling. Imagine being able to watch a League of Legends battle in VR, with complete control over your viewpoint as you move through the battlefield seeing the action from any angle you desire. Or a Call of Duty or Halo with VR spectator capability—not to mention Star Wars: Battlefront, which is already getting a special PlayStation VR experience this fall.

Yes, there’s plenty for fans and marketers alike to look forward to as eSports becomes part of the range of VR experiences, and perhaps even one of the key drivers for hardware sales. Watch this (virtual) space closely for the next breakout hit!

Newzoo Looks At Worldwide VR And ESports Interest

Virtual reality is taking some time to catch on to the market—but a new report from Newzoo suggests there’s still a great amount of interest in it.

The report indicates that, across both North America and Europe, 11 percent of the online population between the ages of 10 and 65 are planning to buy some sort of virtual reality product over the next six months. On the flip side, however, half of Western consumers don’t have any interest in the product just yet, while 8 percent aren’t even aware of its existence. Meanwhile, 32 percent of those polled haven’t yet come to a decision.

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As far as the country that shows the highest interest in VR technology, Spain leads the charge with 16 percent, while, in terms of budget, a good portion of Canada’s audience stated they would be interested in buying such products.

ESports was also a big focus of the report, as Newzoo indicated that 63 percent of those who bought virtual reality tech are also into that level of competition—which makes it interesting that no VR manufacturers have jumped on board for a sponsorship just yet. The report also noted that over half of eSports enthusiasts and 24 percent of viewers that tune in on occasion have plans to buy VR-related goods somewhere down the road.

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Peter Warman, CEO for Newzoo, said: “We have been relatively silent when it comes to VR. This has to do with our expectation that the lion’s share of VR revenues will be generated by hardware sales, spectator content, and live viewing formats. Game software revenues from VR will remain marginal for the near future and be absorbed into current PC, TV/console and mobile game revenues. We will leave guestimates on the future size of the total VR market in revenues to the experts in hardware and (online) retail sales. We are specialists in game revenues and gamer behavior. Hence our effort is to research and report on VR from a consumer perspective because ultimately, in the long term, VR and AR will change how consumers communicate and interact with content.”

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Going back to budgets among virtual reality buyers, Canada has a large portion of consumers interested mainly in HTC Vive (28 percent), followed by the Oculus Rift (25 percent) and the Samsung Gear VR (20 percent). Meanwhile, audiences in Spain prefer the Homido VR (34 percent) as a top choice, followed by the Rift (25 percent).

The report provides plenty of information, and could certainly be news of interest to those who manufacture and market virtual reality gear. For that matter, eSports would definitely be worth looking into, especially considering the high interest amongst players and fans alike.

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SuperData: ‘The Division’ And ‘Clash Royale’ Gain Top Revenues For March 2016

SuperData has provided its newest report, which covers worldwide digital game sales for March 2016, and Tom Clancy’s The Division from Ubisoft continues to be an unstoppable juggernaut.

Joost van Dreunen, CEO for SuperData, reported that digital game sales for the month of March rose five percent, totaling $6.2 billion. “Digital console again sees the fastest growth of any segment for both revenue (up 23 percent year-over-year) and audience (up 15 percent year-over-year),” he said. “Mobile, free-to-play MMO and digital PC also show YoY growth in revenue and monthly active users as digital full game downloads and free-to-play games take market share from physical games.” He also noted a slight drop-off in social gaming revenue (down by ten percent) with more casual gamers moving over to mobile.

In regards to top games for the month of March, Clash Royale was the top mobile pick; League of Legends continued to be the go-to title for free-to-play MMO fans; and DoubleDown Casino was still the top social draw.

However, the month clearly belonged to Ubisoft’s Tom Clancy’s The Division, which dominated at first place for both digital console sales and PC downloadable content. “Excitement pushed sales to over $109 million, making The Division the highest grossing digital console title in March, $48 million ahead of runner-up Call of Duty: Black Ops III,” said van Dreunen. “Black Ops III’s 17 percent month-over-month revenue decrease means The Division siphoned off attention and spending from Call of Duty fans.” Madden NFL 16 also saw a drop-off, though that’s expected since the football season came to an end a couple of months ago.

Meanwhile, all eyes are on Microsoft, who recently announced the discontinuation of the Xbox 360, as van Dreunen believes it will be announcing a more modified Xbox One shortly, possibly at the forthcoming E3 event. “Microsoft is making a lot of changes in its competition with Sony’s PlayStation 4,” he said. “After a ten and a half year stint, the company announced plans to stop manufacturing new Xbox 360 consoles, although existing inventory will still be sold.

“Additionally, two recent hardware patent filings by Microsoft fuel speculation that Xbox One is due for an upgrade. If true, this fits with Microsoft’s new strategy of abandoning new console releases every five to seven years in favor of incremental upgrades. Xbox players can expect a lot of changes as the console becomes less of a standalone platform than a piece of connective hardware for all Microsoft-related gaming.”

Van Dreunen also touched on the success of Clash Royale on mobile. “Supercell’s newest game earned a whopping $133 million in revenue the past month, beating Clash of Clans to become the highest grossing mobile title worldwide. Supercell now has two games occupying first and second place in worldwide grossing ranks with a combined March revenue of $251 million.

Clash Royale firmly solidifies Supercell’s status as the world’s most lucrative mobile gaming company, a significant achievement in an increasingly competitive market,” he continued. “The $32.8 billion mobile market is set to grow ten percent between 2016 and 2017, but higher user-acquisition costs mean fiercer competition among top companies.” He also noted Machine Zone’s recent plans for diversification in attempting to open a “new business segment.”

Finally, van Dreunen discussed the potential of VR. Although SuperData recently revised its VR revenue forecast by taking shipping delays into account, but installing 500,000 PlayStation VR units at GameStop locations will get consumers excited for the technology when the device launches in October. The HTC Vive will also be demoed at various Microsoft stores and GameStop locations by year’s end. “As such, hardware demos in brick and mortar stores will play an essential role in driving virtual reality’s $5.7 billion 2017 market by putting premium gear directly in the hands of consumers.”

The Marketing Power Of DLC

Downloadable content, or DLC, is almost a standard part of major game releases these days. You’ll find DLC with console games, PC games and even mobile games—though mobile games will often provide new content as part of a game update, rather than making it a separate item to download (and pay for separately). This is an enormous change from how games were previously marketed. Games were complete in and of themselves, and while sequels to hit games were expected, add-on content was not.

Now that DLC is a standard part of the product, it’s become more than just another project for product development to work on—DLC is a marketing opportunity, and developed properly it can be a powerful marketing tool.

Marketers have been learning how to take advantage of DLC’s power for some years now, and the results are impressive. Yet far too many still don’t take full advantage of this gaming trend. Even more important, there’s plenty of innovation left in the field of DLC, both in marketing and in game design, so this is an area that can reward study by marketers.

What Is DLC?

DLC can come in many flavors and types, and is often discussed in different terms depending on the nature of the content and the platform. In-app purchases are often DLC, but not always. DLC can be skins, maps, characters, weapons, scenarios, game modes or even entirely new games built using the same game engine. Adding to the complexity is the fact that DLC can be found in many different sizes, from a relatively small piece of art to a complex, multi-gigabyte game mode or entirely new game built on the core game’s engine. DLC can be cheap, fast and easy to develop in terms of production, or it can be an enormous effort that can take more than a year. With the variation in development cost and time, it follows that DLC can be priced anywhere from free to $20 or more.

There are certain patterns to DLC and what can be found in games, and this is normally similar within games of a particular genre on a particular platform. Console first-person-shooters for instance, tend to have DLC that is centered around new maps, and often priced at around $10 or $15 for a set of maps (often bundled with a new character class, weapons, scenarios, or even a new game mode). Console games have fallen into a pattern of announcing DLC plans with the launch of the game, and offering a “season pass” to all of the game’s DLC for the next year, usually at a discount. A typical offering might be a $60 core game and then four $15 DLC releases over the next year, with a season pass discounted to $40 or $50.

PC games follow different patterns. World of Warcraft, for instance, has been delivering major expansion packs (the term they use for their DLC) about every 18 months or so, which is not unreasonable given the huge amount of work that goes into each one. The next expansion, Legion, is $49.99, and there’s a Collector’s Edition for $89.99 as well. Both include new areas, a new character class, and many changes to the game. When you look at games like League of Legends though, you’ll find many inexpensive skins (collections of art and animation) to buy for prices ranging from a few dollars to nearly $25, while champions can be had for less than $7 for the most part.

Mobile games often have continually added new content, as well as content that can be purchased within the game. Often the major game purchases for mobile games are not content per se, but added game time.

The Dangers Of DLC

While DLC is a mainstay of gaming, and usually a major profit contributor, there are dangers involved. First of all, the DLC provided must not cause an imbalance in the game (this can be fatal to a game’s long-term viability!), and it must provide a good value. Trying to sell simple artwork changes for $10 will leave your players feeling abused and unlikely to buy anything from you in the future.

Fragmenting your user base is also a concern for multiplayer games in situations where the available pool of players may be diminished because of DLC. If only the players who have a particular map pack are available in a multiplayer selection round, this can reduce the number of matches available enough to lengthen the wait time for a match to annoying levels. Some games avoid this by making all maps available to everyone, and instead selling different types of DLC that don’t impact the play experience.

One final danger to be aware of is an overabundance of choice. A store with hundreds of choices of things to buy may baffle players, especially newer ones who don’t know enough about the game to make good choices. Possible solutions are to carefully organize the store, provide detailed explanations of why someone might want a particular piece of content, or just making some content available only for a limited period of time. (You can always bring it back later for a special event.)

DLC Marketing Done Right

What does DLC do for marketing? A tremendous amount. First of all, DLC is another reason for you to communicate with the players. The best DLC for marketers is exciting and unusual, and perhaps topical so it’s connected to the events of the day. We often see DLC connected with holidays, for instance, as games add in content based around Halloween or Christmas or other recognizable dates.

Going a step further is Rocket League, with its recent release of Hoops mode—it’s a new game, essentially, based around basketball instead of soccer. This is timed for the NBA playoffs and the high point of the basketball season, getting lots of attention.

Another fine example is what League of Legends has done with its steady stream of new skins and champions. Riot Games regularly builds videos around these new items, and teases them ahead of time—using the DLC to build renewed interest in the game. The DJ Sona skin, for instance, was so beautifully done that it generated immense interest and comment among League fans, and plenty of media coverage as well.

The Future Of DLC And Marketing

We’ve seen how DLC can generate renewed engagement with a game’s fan base, and provide a great opportunity for marketing to connect with players. There’s certainly room to innovate with pricing and timing, though. Could we see subscription pricing for DLC that can be generated regularly and reliably? How about more experimentation with limited availability? Sales? Or working the fine line of the random element, as we already see with games like Hearthstone where you buy packs of cards not knowing exactly what you’ll get? Or the Japanese favorite “gachapon” technique where you try to collect sets of items through a random mechanism (be wary of that one, though, as it can easily be abused).

Marketers should be involved with the creation of DLC, perhaps even coming up with the ideas for some DLC. The extension of a game world is something that, done correctly, means the game can live for years, generating revenue regularly. World of Warcraft has made billions of dollars, and the regular introduction of DLC is the primary reason for the game’s longevity and profitability. Remember that as you plan for the next piece of DLC—the marketer’s friend.