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Pro Video Game Leagues — Another Economic Casualty

Posted by Soulskill on Thu Apr 02, 2009 01:20 PM
from the quake-me dept.
Anonymusing writes "Not long ago, professional video gamer Emmanuel Rodriguez earned a base $30K salary plus prize winnings in the Championship Gaming Series. However, with the economy suffering, sponsors like DirecTV and News Corporation are backing out, leaving Rodriguez with a more typical job for a 23-year-old: store clerk. After the demise of the CPL and the Championship Gaming Series last year, the only major pro gamer league left is Major League Gaming, though it expects to turn a profit this year — some of its players earn more than six figures from the $1 million in prizes given throughout the season, while others are putting off college to work on their gaming careers." A recent story in the LA Times discusses how the games industry slow-down is hitting game developers hard as well. Conversely, the used game market is seeing significant growth — it'll be interesting to see what publishers learn from this.
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[+] Does Professional Gaming Have a Future? 116 comments
mr_sifter writes "Three years ago, celebrity gamers such as Fatal1ty were bagging millions in prizes, and TV channels were queuing up to broadcast games on TV. Professional gaming looked set for the big time. It never happened, and in the current economic crisis, sponsors and media organizations are cutting costs, resulting in the closure of many pro gaming competitions (as we recently discussed) and a down-scaling in prize money. This feature looks at whether pro gaming can bounce back, and whether it will always be a PC sport, or if pro gaming on consoles is the future."
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  • by Evil_Medic1 (1345503) on Thursday April 02 2009, @01:23PM (#27434129)
    Probably...
    "The used game market is canibalizing our sales, they must be stopped!"
    • by Stepnsteph (1326437) on Thursday April 02 2009, @01:57PM (#27434695)
      What they SHOULD learn is that they need to lower their #&@%ing prices. We're not talking rocket science here: People buy used games because they're - gasp! - not $60 or more. $30 to $40 is a far more realistic price range for games, and thus that's what most people are going to pay. Basic economics is a little too difficult for these people though. They'll just panic and blame used games for "cannibalizing their sales", or go on blaming piracy, or make some other inane excuse.
      • Damn. I used up my mod points already. You make a good point which companies are aware of, they're just too greedy to change. We're paying prices which have been the same for ages, from the days when gaming was a niche hobby and there were fewer copies of games created (which by the magic of supply and demand means they were probably more expensive to make). I remember eagerly shelling out $80 CAD for the first Dark Forces PC game the day it was released. That was unusual - a new release price was about $60

        • by DerekLyons (302214) <fairwater AT gmail DOT com> on Thursday April 02 2009, @04:18PM (#27436709) Homepage

          We're paying prices which have been the same for ages

          Which is actually a pretty good deal considering how other prices have risen in the same time frame, including the cost to develop a game.
           
           

          You make a good point which companies are aware of, they're just too greedy to change

          Why *should* they change? Demand for games is largely (though not completely) inelastic - dropping the price doesn't result in an equivalent increase in sales.

        • Re: (Score:3, Funny)

          Nintendo games costing about $50 (an AWFUL lot of money in the late 1980s)

          somebody else that was young back then man up with me and admit to going into your room and crying when you bought a new nintendo game and then slowly...horribly...realized that it sucked after 20 minutes or so of playing it. $50 was a LOT of money for me to come up with then, and my parents were only gonna buy me 2, maybe 3 games a year.

          (dana carvey grumpy old man voice) and we played it anyway! we liked that it sucked!(/dcgomv)

          • Re: (Score:3, Insightful)

            by servognome (738846)

            Supply and demand is a capitalist concept, not communist.

            Supply and demand is an economic concept, capitalism and communism are different methods to deal with it.

      • Re: (Score:3, Funny)

        Huh? Are these gaming leagues taking in tax payer dollars in the form of stimulus packages that would give the government some say in what salaries are? Oh, they're not? So, STFU.
        • by lgw (121541) on Thursday April 02 2009, @03:03PM (#27435725) Journal

          The White House *has* actually considered capping CEO pay in *all* publically held companies. I don't know how seriously this was considered, but the GPP isn't just crazy. I was quite surprised at how seriously the "let's make veterans pay for medical care for their war wounds, that will save money!" idea was taken by the current administration (with even Pelosi roundly criticizing it), so nothing would surprise me.

  • My 3 guesses (Score:4, Insightful)

    by click2005 (921437) on Thursday April 02 2009, @01:25PM (#27434147)

    Conversely, the used game market is seeing significant growth -- it'll be interesting to see what publishers learn from this.

    1. That future games will be a 2Mb executable that downloads all the game content.
    2. They need to charge more for games
    3. Piracy is to blame.

  • by Anonymous Coward on Thursday April 02 2009, @01:26PM (#27434153)

    Conversely, the used game market is seeing significant growth -- it'll be interesting to see what publishers learn from this.

    Clearly they need to go straight to the "used" market. It's like "straight to DVD" in movies.

  • if only... (Score:3, Funny)

    by Digitus1337 (671442) <<lk_digitus> <at> <hotmail.com>> on Thursday April 02 2009, @01:28PM (#27434183) Homepage
    If only we had some players that were -really- good at "fix the economy" games. I'd grok to that.
    • Get those people who are earning more than six figures each, out of a total of $1,000,000. They seem to have managed the whole 'wealth creation' thing. Or they measure their income in cents...
  • by CannonballHead (842625) on Thursday April 02 2009, @01:28PM (#27434195)

    used game market is seeing significant growth -- it'll be interesting to see what publishers learn from this.

    Ooo oo oo, I know, pick me! Publishers will learn that they should publish used games! ... hm, wait...

    • Re: (Score:3, Insightful)

      by v1 (525388)

      No, what they'll learn is to install even more offensive DRM that prevents you from reselling your game, so they can sell more new copies.

      oh wait they're already starting to do that aren't they?

  • Stories like this make me feel *OLD*.

    Take my lawn.

  • Sports Celebrities (Score:4, Insightful)

    by Aladrin (926209) on Thursday April 02 2009, @01:29PM (#27434229)

    He's just a sports celebrity. That's all. You don't hear anyone crying because nobody can get sponsors for curling, do you?

    If people wanted to watch other people play video games, the economy would have very little effect on his life.

    Though, honestly, I've never been sure why people want to watch other people play any other sport, either.

  • by moose_hp (179683) on Thursday April 02 2009, @01:30PM (#27434233) Homepage

    [...] Conversely, the used game market is seeing significant growth â" it'll be interesting to see what publishers learn from this.

    That DRM is good and they should disallow the selling of used games.

    What? they were supposed to learn that their bussiness model can be better? that most new games cost way too much? that is not required to have a great studio spending millions of dollars to make a great game (World of Goo comes to mind, their "studio" was pretty much any coffe shop with free wi-fi)?

    I may be wrong...

  • We kan haz baylowt?
  • by drsquare (530038) on Thursday April 02 2009, @01:33PM (#27434295)

    Perhaps that in a recession people cut back on luxuries, and that a computer game is less important than a mortgage repayment.

  • No surprises there (Score:3, Insightful)

    by godfra (839112) on Thursday April 02 2009, @01:34PM (#27434313) Journal
    The problem with competitive gaming is that it's more exciting to play the game than it is to watch someone else, even if they are way better than you.

    The way to keep people interested is to involve them. Simply presenting video gaming in the same manner as a football match isn't really enough.
    • by evilNomad (807119) on Thursday April 02 2009, @01:48PM (#27434533)

      You must be an expert, because the users, more than 200.000 unique a month, on my site that is dedicated to broadcasting Counter-Strike matches, sure beg to differ with your conclusion..

        • Well since you ask, http://www.hltv.org/ [hltv.org] - I do believe my servers will keep up just fine though.. :)

          But note that you cannot watch matches without having Counter-Strike installed, which in turn makes the spectator numbers even more impressive if you ask me..

            • Re: (Score:3, Insightful)

              No, it only makes your spectators a subset of the millions of CounterStrike players.

              Yes, but it means that people are watching CounterStrike precisely at a time & place when they could instead be playing CounterStrike. So it's not like people watching while unable to play. Thus, there exist at least some conditions under which it is more interesting to watch good CS players than playing CS oneself.

    • I beg to differ (Score:3, Interesting)

      by chrisG23 (812077)
      I like watching competetive starcraft matches much more than playing it. In South Korea, there are 12 professional starcraft teams of 7-14 members each, that play one another in the team pro-league. On top of that there are 3 single player tournament leagues (OSL - Ongamenet Starleague, MSL - MBC Starleague, and GomTV Invitational) that run pretty much concurrently. The games are televised, the best players make a decent living when you take their team base salary + tournament winnings + sponsorships into a
  • You mean video game playing adult isn't a recession proof job? Who woulda thunk that?!

  • The thing that I find to be most outrageous is that there are pro video gamers in the first place. Last I checked, they weren't showing up anywhere on ESPN. WTF, was that just some sort of feeble attempt by the game publishers to get more people buying their warez? "Oh, if you get really really good, we will pay you to play video games all day long. (You gotta be in the top 0.0000005% to get that though, in the meantime we will still take your $$$)"
    • For the most part the pro-gaming leagues were set up by random entrepreneurs, not game publishers. Yes, they represented publicity. But the jury is still very much out on whether people will pay to watch other people play video games. They do in Korea, for sure, but not in the USA. So it was never obvious that the PR they represented was really worth the expense of running them. That's why it wasn't the publishers that set them up.

        • by 2short (466733) on Thursday April 02 2009, @02:25PM (#27435185)
          "People would go out of their way to enter tournaments even though they knew even if they won first place, it wouldnt pay for itself. They played because it was fun and they enjoyed it."

          If it didn't pay for itself, you weren't a pro. That's not meant as a slam, just a definition.
  • A little help (Score:5, Interesting)

    by Useful Wheat (1488675) on Thursday April 02 2009, @01:39PM (#27434393)
    To be honest, I've never really understood how the pro gaming leagues really made any money. I understand that sponsors will give money to anything (re: Pizza hut advertising on a NASA rocket http://www.spaceref.com/news/viewpr.html?pid=2202 [spaceref.com]), but this is no excuse. At the very most I'm indifferent about how well other people play the games I play, and I'm pretty sure most of my friends are the same way. The economy is just a useful scapegoat in this situation. Let's take a survey: How many of you enjoy watching other people play video games? How many of you have dismissed players that dominate you as having spent way too much time playing video games? What's your favorite kind of cheese? I'm partial to those Kraft American Singles.
    • I suppose you are talking about competitive video games. If that's the case, then yes I enjoy watching how others play. It's no different than watching a match of tennis or chess. Do you also wonder why people watch those instead of going out and playing the sport themselves?
    • I am very passionate about cycling, and tried racing, but didn't like it. However, niche sports like these all suffer from the same problem:

      They don't have a mass audience.

      There are millions of people that will watch a game of football, baseball, basketball or soccer (especially soccer) on a (n>inf)" widescreen plasma LCD TV (or any TV, really) at home, or in the pub/bar, supermarket, while shopping, etc. I postulate that a reason for this is that the action and "spirit" of each sport caters to dif
    • Re: (Score:3, Interesting)

      by NigelT (1265592)
      I can see how you might find it hard to understand video games as a spectator sport...but usually, The people watching are avid gamers themselves, they know the mechanics of the game involved and at least in my experience, enjoy watching others demonstrate their ability, or sometimes inability to do well in whatever the game of choice may be. Nevermind the whole competition aspect of it...
    • Re: (Score:3, Funny)

      by Fozzyuw (950608)

      (re: Pizza hut advertising on a NASA rocket http://www.spaceref.com/news/viewpr.html?pid=2202 [spaceref.com] [spaceref.com])

      Off topic to the article, but to your point about sponsors... KFC is actually spending money to fill pot holes and spray-paint their logo on them [chicagotribune.com]. Complete with Col. Sanders standing around with a bright green jacket.

    • Re: (Score:3, Insightful)

      i) How many of you enjoy watching other people play video games?

      You do know that IN THE BEGINNING we used to stack quarters on the machines and wait our turn. If some bastard was really good he could keep the crowd waiting until people started to give up and pick up the quarters and leave.

      Damn, that used to feel good! :)

      Oh, wait, you wanted to know if I enjoyed watching other people play.

      The answer is Hell, yes! How do you think I ever learned to play the original Street Fighter? You remember, the on

  • XP League [xpleague.com] just started up, they were formerly HTGN. They are advertising cash payouts, similar to CPL.
  • by HalAtWork (926717) on Thursday April 02 2009, @01:46PM (#27434497)
    Wow, that's a pretty short career for this kid [gadgetsandgizmos.org]...
  • by EWAdams (953502) on Thursday April 02 2009, @01:53PM (#27434631) Homepage

    If the retailers aren't careful, they'll kill off their own source of supply. Used games are a big win for them and a big win for the consumer, and a big loss for the publishers. If the retailers drive the publishers to digital distribution ONLY, they won't have anything left to sell.

    You'll notice that major bookstores don't sell used books, only new ones.

    Within 20 years games may become a service like cable TV, not a product you buy and take home.

  • WSV (Score:5, Funny)

    by Jethro (14165) on Thursday April 02 2009, @01:53PM (#27434639)

    I wonder if I can start a professional World's Smallest Violin league...

  • by lupinstel (792700) on Thursday April 02 2009, @01:54PM (#27434653)

    In light of this news EA Sports has decided to cancel their new game "Major League Gaming - The Game 2K9".

  • Conversely, the used game market is seeing significant growth â" it'll be interesting to see what publishers learn from this.

    Quit making the same games as each other and quit making so many damned sequels and then maybe people will see value in what you produce.

  • They'll probably learn nothing.

    But they'll probably add more DRM in the future, lobby harder, and generally give us less while attempting to charge more.

    Seems to be their typical reaction to any type of change or encroachment on their nearly obsolete business models. While I don't believe hard copy game selling will ever die as long as we have walmart, it's not a market that is growing as fast as digital delivery.

  • The professional video gaming industry is part of the fabric of our country. It has become too important to fail.

    I think they deserve a bailout.

    • I'm not sure why watching someone excel in one skill, be it running or playing chess, is more interesting than watching someone excel at another. Unless you believe that button pressing is intrinsically non-skilful (but isn't your job just pressing buttons in the correct order to produce games?) People watch professional snooker or darts, and they're really just tests of your hand-to-eye co-ordination and ability to approximate trigonometry; what's different about a computer game, other than the fact that

    • Watching people play cards is now a televised "sport".

      Maybe if people played video games for money....