Monthly Archives: September 2019

Tapping into the booming esports market

PCR BLOG

In July 2019, spanning three days, the largest gathering of gamers from around the world – 40 million – took part in the Fortnite World Cup tournament. Hailed as a monumental moment for esports, the winner, a 16-year-old, took home £2.42 million. The prize sum overshadowed the £1.6 million Shane Lowry won at this year’s Golf Open Championship in Portrush. The esports industry is becoming increasingly popular, rivalling many traditional sporting events with the Fortnite tournament watched by 23,000 people in a sold out New York stadium and millions more through live streams.

This highlights how the gaming industry and its place in culture has evolved, with gamers stepping away from their own consoles to watch others play their favourite games. And not surprisingly, this is reflected in the size of the gaming market which continues to grow rapidly. According to Newzoo, there are reportedly 2.3 billion active gamers globally and 46% of those (1.1 billion) spending, the financial impact to the establishment is significant. More so with the forecasted growth of gaming from $137.9 billion in 2018 to more than $180.1 billion by 2021. Looking just at the UK, the gaming market is now worth a record £5.7 billion thanks in part to the strong foundations in place for innovative games and entrepreneurial developers.

The next 12-18 months looks set to be a very interesting for the sector with some of the big names in gaming hardware expected to reveal their next generation platforms. Expectation is that Sony, who have sold 525 million consoles since launching PlayStation in 1994, will start to ship their latest console in the second half of 2020. And of course both Nintendo and Microsoft will be in the mix too. Microsoft officially announced its next generation hardware, codenamed Project Scarlett, during its E3 2019 conference and it’s due for release in time for “Holiday 2020”.

Before that is the exciting debut of Stadia in Q4 this year which may be a potential fly in the ointment for the established gaming brands. Google’s launch of Stadia is a game-changer, and a move that will have Nintendo, Microsoft and Sony quite concerned. No downloads, no patches and no console makes this the cloud gamers dream, and Google is delivering this incredible service without compromising on graphics quality.

As Phil Harrison VP and general manager at Google stated when launching Stadia: “It’s a new generation platform, rather than a next generation platform”. In evolving the concept of platforms, rather than recreating them, Stadia will be a tough act to follow, with sharing options via YouTube, which has 63 million daily viewers worldwide, Google Assistant built in, 4K resolution games at 60 frames per second with HDR (High Dynamic Range), and a plan to support 8K resolution in the future.

The excellent features are great news to those who have grown up used to on-demand web-based entertainment, app-based games and instant updates to technology, but for generations who are familiar with buying physical consoles and games, this could be a transition they may not make because nostalgia can come into play. Owning a console and saving up to buy the latest must have game and completing it before trading it in to buy the next release, has been a pleasure to many.

The generational changes in consumers has seen Millennials identify with nostalgia and they recapture their youth through console gaming just as they have been doing for over 20 years. There is a shared enjoyment amongst social groups in getting together and playing a multiplayer game on Mario Kart on the original Wii. It’s also interesting to see how the retro gaming sector tapping into this and making headlines. Available to buy this Christmas will be a reimagined full-sized reissue of the Commodore 64.

Giving this generation a chance to either buy or play the consoles and games of their youth could open up a new opportunity for gaming retailers, because a streaming service is not great news for those retailing the hardware to eager gamers needing to upgrade to access the dream being sold by the platforms. Indeed, GAME has been battling tough high street conditions and has seen in the past three months a successful take over by Sports Direct. The British sports gear retailer said it did not believe that, as a standalone business, GAME was “able to weather the pressures that it is facing”.

Furthermore, the introduction of streaming could see the resale market suffer too, again a blow to high street stores such as GAME and CEX.

This is an evolving and exciting market with opportunities and pitfalls for the whole supply chain. I started this piece discussing the phenomenon that was the Fortnite World Cup and for retailers, this presents a huge opportunity to tap into this ‘experience’ economy and revive their fortunes by using empty high street spaces to create purpose-built gaming arenas for live gaming where the community can come together. But there’s no doubt that we’re going to see a ferocious battle between Stadia and the console manufacturers – so let the games begin.

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5G and its societal impact in the home. Are you ready?

The Drum Blog

Over the last few years, smart home technology has revolutionised the way we live at home and according to PWC’s White Paper, Connected Home 2.0, 10.8bn will be spent on smart home devices in the UK in 2019. But despite this, a recent survey we carried out into the connected home highlighted consumer frustration with smart home technology.

Consumers cited all sorts of problems – from not being able to get their smart home technology to connect to each device and talk to each other; not having an idea of how to work it all works; being worried about security; and seeing little perceived benefit or value in the technology. Whilst this may sound negative, this presents a huge opportunity for 5G to boost further appliance adoption and showcase the future possibilities in the home.

There’s been a lot of hype around 5G, but I believe 5G is a transformative technology for the home, as it’s spearheading a multi-dimensional world connecting appliances, brands and people in real time with its fast bandwidth and reduced latency. Take a look around your home. There’s already numerous appliances that rely on a strong wireless connection to work – iPads, virtual assistants, laptops – and without it everything comes to a halt. 5G will provide an alternative to fixed wireless internet making things connect quickly, nicely and simply. From rural areas where broadband speeds are poor to urban areas where speeds can suffer from congestion; 5G will enhance the possibilities for a smarter home.

This will pave the way for 5G-enabled fully integrated living spaces that adjust to the needs of each member of the family, changing the way people entertain, consume media, use their utilities, communicate and cook. Virtual assistants like Alexa and Google Home are only the start and we’ve seen a fraction of what personal assistants are capable of. Google announced at CES earlier this year that it wants to make its Assistant the focal point of a consumer’s life; in the home, in the car and on mobile devices. 5G will be that enabler.

Layer on top of this the possibilities of 5G-enabled in-home augmented and virtual reality for cooking. Imagine Delia standing next to you showing you how to cook one of her recipes at the touch of a button. Sit down with your friends and family to watch a tennis match and imagine real time sports data appearing over tennis players as they hit the ball. 5G will make smart homes even smarter by unshackling developers from the speed restrictions and other issues that exist with today’s solutions where devices rely on wi-fi networks or Bluetooth connections.

5G can provide a more consistent approach, making things easier to setup and thus encouraging product development and subsequent consumer adoption. It is about future-proofing the nation and one of the most interesting effects will be the societal impact 5G will have on our aging population. 5G networks will help users age in place and blur the lines between hospital and home, better managing the healthcare of patients who require the most resources from our currently overloaded NHS.

We’ve already seen how sensor operated smart home tech can alert families to movement, so they know their elder relatives are up and about in the house and not lying there injured or worse, dead. And remote surgeries, where doctors see patients by video call, often suffer with buffering as an issue, particularly in remote locations which makes the service more difficult for vulnerable people to use. 5G will take this to a whole new level; real-time remote monitoring of medication usage; food intake levels and exercise; connecting the elderly to seamlessly operated telehealth services and tracking indicators from sleep to blood pressure and insulin levels.

5G can help power personalised, preventative and smarter care capabilities and elevate connected medicine to an unprecedented level helping elderly people live fulfilling and productive lives on their terms. This is exciting times for a growing societal issue here in the UK but let’s not underestimate the understanding we need of the health ecosystem and what it will take to implement the systems to connect to these technologies.

To read the full article please visit The Drum.

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