Kliuless? Gaming Industry ICYMI #1

Sept. 3, 2018
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Hi, my name is Kenny, and I work in Revenue Strategy at Riot Games. Each week I compile a gaming industry insights newsletter that I share with other Rioters, including Riot’s senior leadership. This edition marks the inaugural public version that I will publish broadly every week going forward as well. Opinions are mine.

See more or subscribe at: https://tinyletter.com/kliuless

Kliu's Corner: Fortnite the Platform

  • Though Fortnite has not yet completely transitioned to becoming a platform, Epic has taken a couple steps towards that direction already

    • For example, they added a sandbox-like Playground Mode, and have incrementally added improvements to it over time

    • Toys” (e.g., golf balls, basketballs, volleyballs) were also added to the game even though they serve no functional purpose in Battle Royale

  • As this Medium post suggests, Fortnite is "much more than just a game":

    • "For my sons and a lot of kids their age, Fortnite is not a game they play, it’s a place they go—and, importantly, it’s a place they go with friends and not with Mom and Dad. It’s fulfilling the same development role as those illicit teen spaces from the 1970s and ’80s—those dodgy youth clubs, arcades, and video stores that we discovered unchaperoned.

    • Teenagers are caught in a crappy sociocultural Catch-22: Adults are worried their kids are spending too much time on smartphones and consoles, but at the same time they’re constantly policing and restricting access to physical environments"

  • Each incremental piece of content Epic adds into Fortnite widens their competitive moat in the battle royale genre

    • Every improvement continually raises players' baseline expectations by which all other competitors would be judged

    • Sound familiar? It should, because this is one of the ways League established MOBA market dominance with each new champion pool addition

Business Strategy

Revenue Strategy

  • "Why Fortnite Makes Billions"

  • NPD: U.S. game spending up 40% in first half of 2018

  • What is an ad attribution conversion window and how does it work?

  • European ratings board PEGI adding in-game purchase label to boxed game

  • Blizzard removes paid loot boxes and loot chests for players in Belgium

PC/Console(/Mobile)

  • Epic's first Fortnite Installer allowed hackers to download and install anything on your Android phone silently [KL: TL;DR Tweet thread here]

    • Related: Man-in-the-Disk: A New Attack Surface for Android Apps

  • Square Enix to create AAA original IP with Tencent

  • Xbox Game Pass heads say player feedback shows they prefer a service with a smaller number of quality titles to one with thousands of games

  • Arena of Valor Nintendo Switch to Have Upgraded Graphics, Different Stats from Mobile Version [KL: no cross-platform either]

  • EEDAR: Analyzing player preferences from the US games market

  • Newzoo: Hardware & Esports at the Core of the Mobile Gaming Opportunity

XR: AR/MR/VR

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