'Overwatch,' 'Call of Duty' May Follow in Fortnite's Free-to-Play Footsteps: Analyst
*By Zane Bhansali*
Following Epic Games' incredible $3 billion profit gain in 2018, many game developers are eager to emulate its success. Wedbush analyst Michael Pachter predicts that Activision Blizzard will follow in Epic's footsteps by changing two of its biggest titles to a free-to-play model.
According to Pachter, Overwatch and Call of Duty may soon switch to the free-to-play model in order to meet investors' expectations.
"The real reason I think this is going to happen," says Pachter, "is that Bobby Kotick, who's the CEO of Activision, has convinced 18 members of the billionaire boys' club to buy franchises in the Overwatch League."
According to Pachter, Activision Blizzard's ($ATVI) only viable route to making back the $18 million to $24 million purchasing fees for each team slot is through advertising ー a model better suited by having more eyes on the game. To Pachter, that means more players who can understand Overwatch's frenetic pace.
"Overwatch, if you play, you get it," says Pachter. "If you don't play, it's incomprehensible. The only way you're going to ever drive more eyeballs is to make it free. The only way these 18 billionaires are going to get their investment back is if the audience expands dramatically."
Blizzard's Overwatch League has faced concerns about viewership numbers after a strong start. According to a [report from The Esports Observer](https://esportsobserver.com/10most-watched-twitch2018/), the Overwatch League Twitch channel ranked fourth in hours watched in 2018 with 74.6 million hours watched. Rival developer Riot Games logged 99.31 million hours on its own channel, while breakout Fortnite streamer Tyler "Ninja" Blevins eclipsed both, with 226.85 million hours.
The 15-year-old Russian Olympic figure skater Kamila Valieva found herself at the center of a scandal after a positive test for a banned substance became public. Valieva fell out of gold contention in the women's free skate after falling, avoiding a potentially embarrassing situation, where a medal ceremony would have been nixed had she won. Scott Hamilton, the retired American figure skater and Olympic gold medalist in the 1984 Games, joined Cheddar to break down the scandal. “It’s a team competition and every member of the team participated in that score and hers should be disallowed”.
Alex Monaco, host of the “The Bettor Half Hour” on MSG Networks and the “Sports Gambling with Moneyline Monaco” podcast, joins Cheddar Bets to give his last-minute tips before tonight's slate of games starts.
Sponsored by BetMGM
Richard Jefferson, host of the Road Trippin' podcast, NBA Today analyst, and NBA Champion, joins Cheddar Bets to break down All-Star Weekend festivities and to give his "Pick 6" for tonight.
Sponsored by BetMGM
BetMGM Host Olivia Harlan Dekker joins Cheddar Bets to break down tonight's big Bucks-76ers matchup -- likely Philly's last game without James Harden.
Sponsored by BetMGM
While many are excited to watch the final two NFL teams square-off and see which one ultimately takes home the trophy, some, on the other hand, are there for another mian attraction -- the commercials. Companies during this year's game are looking towards the future From electric vehicles, to robots, and crypto-currency, several first-time advertisers are expected to join long-time advertisers like Pepsi, Budweiser and Doritos during the NFL's biggest game. Tom Morton, Global Chief Strategy Officer at R/GA, joined Cheddar News' Big Game Special to discuss.
This week's Spring Training has been delayed as a result of the ongoing MLB Lockout. This past Saturday lead negotiators and lawyers from Major League Baseball and the players union met to discuss the economic hurdles needed to be cleared for a new labor deal, but from all accounts, it seems the sides are still far apart. Baseball Columnist and Publisher of "The Joe Sheehan" Baseball Newsletter, Joe Sheehan, joined Cheddar to discuss more.
The Super Bowl might be over, but people are still buzzing about the players, commercials, halftime show, and more. Google tracks the top searches before and after the game every year, revealing the show-stopping moments of the biggest sporting event of the year. Sadie Thoma, Director of US Creative Partnerships at Google, joined Cheddar's Opening Bell to discuss the top trends this year.
Private equity firms are taking a big interest in investing in NBA teams, the sports league showing the highest ROI over the last two decades according to Sportico, Forbes, and PitchBook. Wylie Fernyhough, lead analys for private equity at PitchBook joined Cheddar News to discuss the way firms are looking to get a piece of the action on the court. “There’s a certain amount of rarity, with these," Fernyhough said. "They’re not exactly printing new NBA franchises."
Kyle Jaeger, senior editor for Marijuana Moment, joined Cheddar News' Closing Bell, where he explains why a stigma still exists for the cannabis industry in advertising and social media after NBC rejected Weedmaps' ad for the big game even though more states across the country are legalizing cannabis.
We know that the Los Angeles Rams emerged as Super Bowl champions, but the crypto industry also came out a winner on Sunday with several notable companies getting airtime in primetime. However, Richard Smith, author of the Risk Rituals Newsletter, joins Cheddar News' Closing Bell, where he says the campaigns were a 'disappointment' and adds that crypto companies would be wiser spending their resources on creating value.