Pixel P&L: The Skyesports 2024 Debacle

Good Morning. It’s Wednesday, July 24. Today, we explore the turbulent start of the Skyesports Championship 2024 and its broader ramifications for the Indian esports industry. We also report on the International Olympic Committee's official announcement of the 2025 Olympic Esports Games and highlight Android's sponsorship of an Indian BGMI tournament, amongst other stories.

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The Skyesports Championship 2024, with its $300,000 USD prize pool, was poised to be the crown jewel of Indian esports. Instead, it has spiraled into a disaster. Rotten tables with nails protruding, electrical hazards, and a complete lack of internet connectivity have left athletes struggling to compete.

Fans hoping for seamless livestreams also faced bitter disappointment. Out of ten scheduled matches, only one painfully concluded after nearly four hours of internet issues. Another match was abruptly halted, leading to the postponement of all first-day events. Shockingly, one team has already withdrawn, citing "unmet promised conditions."

These incidents have recast the spotlight back on previous Skyesports events that were plagued with delays and technical problems. In our latest feature, we explore the tournament organizer’s notorious track record that was similarly plagued with delays, technical problems, unsuitable arena conditions and controversial partnerships.

We also delve into the broader implications of this event's failure. We examine how it damages international partnerships, erodes fan trust, and threatens the growth and credibility of the entire Indian esports industry.

In a groundbreaking decision, the International Olympic Committee (IOC) has approved the creation of the Olympic Esports Games, set to debut in 2025 in Saudi Arabia. The unanimous endorsement came during the 142nd IOC Session in Paris, solidifying esports’ place in the Olympic movement.

IOC President Thomas Bach commented, “This is a new era for the IOC. We are keeping pace with the digital revolution.” The decision follows years of engagement with the esports community, highlighted by the successful Olympic Esports Week in Singapore in 2023.

Saudi Arabia’s Vision 2030, aimed at diversifying the economy and promoting sports, played a pivotal role in securing the event. “Esports in Saudi Arabia already have a rich past, an exciting present, and a promising future,” stated Prince Abdulaziz bin Turki Al Faisal, Minister of Sport.

The IOC has partnered with the Saudi Arabian Olympic Committee for 12 years, a move that underscores the Kingdom's growing influence in global esports. However, this decision comes amid concerns from the esports community regarding human rights and women’s rights issues within the region.

Concerns also surround the selection of game titles. The precursor to this event, the Olympic Esports Series, faced criticism for its selection of obscure games, ignoring popular titles like Dota 2, League of Legends, and shooter games due to concerns about violence.

NODWIN Gaming Secures Android as BGMS Season 3 Title Sponsor

NODWIN Gaming has announced Android as the title partner for BGMI Masters Series (BGMS) Season 3, rebranding the tournament as Android BGMS Season 3. Teams will compete using high-end Android devices, enhancing the competition's technological edge. Skincare brand Garnier Men joins as a partner alongside Red Bull and anime streaming platform Crunchyroll. Returning partners include TVS Raider and Philips OneBlade. The tournament, which began on July 19th and runs until August 11th, features 24 teams competing for a ₹10 million INR (~£92,500) prize pool.

NAVI and Visa Launch Youth Esports Academy for CS2 Talent

Ukrainian esports organization Natus Vincere (NAVI) has partnered with financial technology company Visa to launch the NAVI Visa Academy, a youth-focused esports project aimed at identifying and nurturing young talent for CS2 esports. The academy seeks to feed players into NAVI Youth, the organization's official academy team. The selection process involves a three-stage project starting with applications reviewed by NAVI coaches, followed by a three-week online competition for top candidates aged 14-17 with high ELO ratings on FACEIT. The 10 best performers will attend a Berlin bootcamp, with the top five joining NAVI Youth.

Perfect World CEO and Co-CEO Resign Amid Mass Layoffs and Financial Decline

Perfect World CEO Xiao Hong and co-CEO Lu Xiaoyin have reportedly resigned following mass layoffs at the company. Senior VP Gu Liming has been appointed as the new chief executive. Hong and Xiaoyin will remain as directors. This development comes a month after reports of Perfect World laying off approximately 1,000 employees across its Beijing, Shanghai, and Chengdu offices. The resignations also follow Perfect World's Q1 2024 financials, which reported a net loss of ¥29.8 million ($4.1m), a 112.33% decline YOY.

Indonesia Poised as Third Fastest Growing Global Gaming Market by 2028

Indonesia is projected to be the third fastest growing video game market globally, according to PwC's Global Entertainment & Media Outlook 2024-2028 report. The report highlights the global E&M industry's robust growth, with revenues rising 5% in 2023 to $2.8 trillion and expected to reach $3.4 trillion by 2028. Gaming remains a key growth sector, driven largely by the Asia-Pacific region, with revenues anticipated to surpass $300 billion by 2028.

Netflix is ramping up its gaming initiatives, with over 80 games currently in development and plans to release a new title to subscribers every month starting in July 2024. This ambitious push into gaming was confirmed by co-CEO and president Gregory K. Peters during Netflix's latest earnings call. Highlighting the gaming market's potential, Peters noted that even without advertisement revenue, it generates "almost $150 billion, excluding China and Russia."

"We're getting close to three years into our gaming initiative, and we're happy with the progress that we've seen," Peters said. He revealed that Netflix has set and often exceeded aggressive engagement growth targets, tripling engagement in 2023. The company has even more ambitious goals for 2024 and beyond.

Despite these gains, Peters acknowledged that gaming engagement is still relatively small compared to Netflix's overall content spend. However, the company has already launched over 100 games and remains committed to expanding its gaming footprint.