'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.
As the 2022 Beijing Winter Olympics inches closer, sponsors are facing mounting pressure to pull out of the games with China is under fire for controversies like the alleged human rights abuses against its Muslim minority population and the disappearance of tennis player Peng Shuai. Rick Burton, professor of sport management at Syracuse University, joined Cheddar to discuss what he expects to happen once the games begin. Burton said China is too large of a market for American advertisers to ignore, and he doesn't expect any of them to pull out of the games. "Olympic sponsors right now I think are really just trying to hang on and get through these 17 days, come out the other end," he said.
As controversy dogs the run-up to the 2022 Beijing Winter Olympics, China is hiring TikTokers and other social media influencers to promote the nation's history, culture, diplomatic efforts, and current trends.
Talent Resources Sports is partnering with ABG Entertainment to host Sports Illustrated The Party during the weekend of Super Bowl LVI, featuring musical performances by Kygo, Jack Harlow, and other guests. David Spencer and Mike Heller, co-CEOs and founders of Talent Resources Sports, joined Cheddar to discuss the details behind putting on the event. “We’re just really pumped that after all of the things that got canceled people will finally have a place to let some steam off in such an exciting moment, such a charged moment with the Super Bowl,” Mike Heller said about putting on the live event after previous COVID-related cancellations.
New York quickly became the sports betting capital in the United States following an electric debut earlier this month. Cheddar News was joined by Chad Kornett, VP of Government Relations for Gaming at Geocomply to dive into the numbers.
Exercise equipment maker Peloton is attempting to run away from a recent bout of controversy. CEO John Foley published an open letter to employees on Thursday after reports that said Peloton was pausing production of its Bike and Tread products, delaying the opening of a new U.S. factory, and considering job cuts. In the letter, Foley wrote that the information in the reports was 'incomplete,' 'out of context,' and not reflective of Peloton's strategy. Peloton's stock responded on Friday, with shares bouncing back after falling nearly 24% in the regular session on Thursday. CFRA Research's Director of Research Ken Leon joined Cheddar News' Closing Bell to discuss.
The NCAA has updated its policy on transgender athletes, allowing each sport’s national governing body to make its own decisions for transgender participation. The new rule is in line with recent changes from the U.S. and International Olympic and Paralympic Committees. Joanna Hoffman, communications director of Athlete Ally, joined Cheddar News to discuss the potential impact of the new rule on the transgender community.
The NCAA voted to streamline their constitution at their annual convention on Thursday. Each of the three college divisions can decide how student-athletes can make money from outside sources but still restricts schools from directly paying its players.
With New York recently announcing the legalization of sports betting, even a greater number of bettors are looking forward to the NFL's divisional round. Derek Carty, a fantasy sports and sports betting analyst, talked to Cheddar about betting strategies for the four upcoming playoff games. "I feel like the Chiefs are a little bit overrated by the markets, and so the Bills here really look good to me," Carty said for the Kansas City and Buffalo matchup. He also pointed to the Green Bay Packers to be the likeliest team to win the Super Bowl this year.
Olivia Harlan Dekker and Sean Green break down and provide their top picks for the NFL Divisional Round this weekend, while Frank Schwab dissects NBA futures and gives his take on the ongoing Nets drama.
Sean Green, co-founder of The Sports Gambling Podcast Network, joins Cheddar Bets to break down the best plays across the AFC Divisional Round matchups.
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