Esports market research company Newzoo announced a new partnership with Chinese esports research firm Gamma Data. This comes on the heels of Newzoo and The Esports Observer both being acquired by Advance Publications in October.
This puts the North American region further behind the strategic competition curve in esports. While China, Korea, and most of the EU and Africa jump on the technological bandwagon, the majority of North American business is still working to develop a profitable business model for esports.
The acquisitions of TEO, Newzoo by Advance, and now this strategic partnership place the Chinese market firmly in control of the growth path for the next 10 years. Controlling the dissemination of information while also having access to insight available for sale to other major firms means China, and by default Tencent, will see every new idea and trend well before anyone else and be able to react appropriately.
I get that Advance is a media company based in New York City. Buying Newzoo then partnering with Gamma Data in such a short time frame means Chinese influence was there from the start. This is all part of a larger strategic plan, and it just came into the light.
So while we scream to our parents and those in power about the growth of esports and its potential, China has cornered the market on every pillar necessary for control. Media and authority, data and insight, online streaming, and also the on-site event structure are all part of the growing web of Chinese control.
For better or worse, we are now in a new era.
The written word still rules the world. It has a permanence to it that video does not. As proof, I offer the entire industry built around search engine optimization. SEO is built solely upon the written word specifically keyword frequency and image tags. So when Advance bought a majority stake in TEO and Newzoo, the Chinese knew they had a winner.
The authority created by writing is less understood in this era of video clips and memes. Pictures capture our immediate attention but words anchor us to the past and keep us mindful. Combining the two means having the heart, mind, and soul of esports in the palm of their corporate hands.
Image courtesy gooruf.com
Newzoo built its reputation on interpreting large amounts of data into pieces it then sold to corporations for large amounts of money. They do the grinding, grunt work so brands don’t have to spend resources doing so. Brands pay hefty sums of cash for others to do that tedious task. Chinese esports now has its finger on the pulse of the global gaming community.
Every new trend, every emerging platform, game, every rising online star, and every whisper is now fed directly into the money machine that is Chinese esports. Make no mistake, Tencent will leverage all this new insight and cash flow to its own benefit.
The Chinese government controls ALL media within its borders. Google, Apple, Microsoft, and every major gaming brand must have federal approval to do business in China. This applies to streaming and every streamer, as well.
How does that matter? Twitch and Mixer, and every other streaming platform are essentially the blockchain for esports. Streams are the decentralized places (distributed ledgers) where the data creators (fans and consumers of esports) meet often to exchange ideas, talk about current events, and come to a consensus of how to feel about something while validating each other.
Google doesn’t exist in China as it does everywhere else on the globe. The Chinese government controls everything with an iron fist. As an example, they will launch a social credit system by 2020 to rank and track all their citizens. This means if anyone wants into the largest consumer market on the globe, they must play the game under the rules set by the Chinese.
The first major purpose-built esports arena was constructed in China back in February 2018. It was the initial offering in what is now a network of sites followed very quickly by the Allied Esports venue in Los Angeles as well as the one in Las Vegas inside the Luxor on the strip.
There is nothing like going to a live event for any genre. Music concerts, industry-specific conventions like E3 and TwitchCon, and EVO all have a big game feel to them like the Super Bowl with all the noise, lights, pageantry, and free stuff. Now the Chinese esports system has buildings in the heart of the NA esports world.
The new esports stadium in Arlington, TX is a true competitor. It’s placed in the perfect spot with good money behind it and a spending mentality. However, it’s the lone beacon in the dark sea dominated by this massive power that is Chinese esports.
Image courtesy Photoshop Nation.
This is assuredly a large hill to climb. North America is adopting esports as a viable entertainment offering faster than everyone except China. Catching the Chinese means doing a few things:
Featured image courtesy of Newzoo
You can like The Game Haus on Facebook and follow us on Twitter for more sports and esports articles from other TGH writers along with Bill.
You can also follow Bill on Twitter @LearningBill and LinkedIn.
Players must be 21 years of age or older or reach the minimum age for gambling in their respective state and located in jurisdictions where online gambling is legal. Please play responsibly. Bet with your head, not over it. If you or someone you know has a gambling problem, and wants help, call or visit: (a) the Council on Compulsive Gambling of New Jersey at 1-800-Gambler or www.800gambler.org; or (b) Gamblers Anonymous at 855-2-CALL-GA or www.gamblersanonymous.org.
