002 – June 14, 2020
From the keyboard to the boardroom, this is the Business of Esports Minute! Every single week, I, Paul Dawalibi, the prophet of esports, will be bringing you my hottest takes from the week, basically everything you need to know about the business of esports all in about one minute. Let’s go.
This week, Sony revealed the official details of their new Playstation 5 console. It was a long boring livestream filled mostly with game trailers. The hardware itself seems underwhelming and seems to be mostly a mid-range gaming PC from 3 years ago, which is par for the course in the console world. It will be interesting to see who wins this generation of console wars, but Microsoft and Xbox seem to have all the momentum, with a more powerful offering, and tie-in with the PC that could be the difference maker.
In a completely expected turn of events, GameStop sales took a huge hit and reported a 34% fall in sales for the quarter. The company reported a first-quarter net loss of $165.7 million, which was even more than Wall Street had anticipated. This comes as no surprise, as GameStop’s business model has been made obsolete for a while now by digital game distribution, and the company’s management continues to make poor decisions. Bankruptcy is already overdue for the company given the complete lack of direction and focus.
Finally, Twitch streamers received a flurry of takedown requests and copyright notices this past week from the Recording Industry Association of America. Streamers were forced to take down hundreds of thousands of clips that contained copyright music. Twitch did very little to shield their streamers’ content from this attack, which seems like a misstep for the platform. It’s likely that Twitch will continue to abide by these takedowns under the Digial Millenium Copyright Act, but it feels like there is a technology solution that could potentially satisfy both sides.
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