eSports
Premier Esports Organization Andbox Rebrands as “NYXL,” Announces Mission to Develop NYC as the World Capital of Esports & Gaming Culture
New York’s flagship esports organization Andbox announced that it has rebranded as NYXL. Dedicated to creating experiences and developing content that connects the worlds of esports, gaming culture, and lifestyle for the discerning modern gamer, NYXL solidifies its commitment to New York in more than just name – making an investment into NYC’s gaming community, including building its headquarters, XLHQ, in Manhattan. The organization will also launch YXL, their Young Creator Project, an annual initiative that discovers, supports and promotes the next generation of New York digital content creators, pledging $500,000 to the program. The announcement was made today by NYXL CEO James Frey and CCO Mitchell Smith.
Founded in 2017, NYXL was the first organization to bring professional esports to New York City. The team behind NYXL has deep experience in film, television, entertainment and sports, and brings world-class storytelling experience to esports for the first time. In addition to Frey and Smith, leadership includes President and co-Founder Farzam Kamel, Chief Product Officer and co-Founder Rohit Gupta, Executive Board member and co-Founder Scott Wilpon and Sterling Equities. Members of the advisory board also include former Turner President David Levy and Mike Sepso, CEO of Vindex and co-founder of Major League Gaming; with key investors Kevin Durant and Rich Kleiman, Michael B. Jordan, Pohlad Companies (owner of the Minnesota Twins), Allen & Company, the founders of Warby Parker, Harry’s, Giphy, and Dapper Labs.
“As New York City emerges from the pandemic, we’re laser focused on expanding our new job markets and industries, including digital game development,” said New York City Mayor Eric Adams. “We are thrilled NYXL is making New York City their new home, congratulate them on their relaunch, and hope others follow their lead. Last week, we announced our Blueprint for New York City’s Economic Recovery, and we are going to make certain fast-growing companies like NYXL get the welcome they deserve.”
“NYXL’s rebranding and new Manhattan headquarters signal their commitment to digital game development in NYC, the creative capital of the world,” said Mayor’s Office of Media and Entertainment Commissioner Anne del Castillo. “A major economic driver, employer and content creator, the digital game industry in NYC supports more than $2 billion in economic output and $762 million in wages, serving as an important component of our city’s economic recovery plan.”
The New York Mayor’s Office of Media and Entertainment (MOME) recently conducted the first NYC Digital Games Industry Economic Impact Study, which highlighted the sector’s significance and contribution to New York City’s economy, and found the growing industry supported 7,600 jobs. NYXL will play a key role in growing this burgeoning industry, which is clearly becoming a major economic driver, employer and content creator for the city.
“I love what NYXL has done so far to elevate esports in NYC and connect with local creators and fans,” said Scott Wilpon, co-founder of NYXL and the partner of Sterling Equities. “I’m looking forward to working with them to further their commitment to reinforce that New York is truly the next major gaming hub.”
Hip-hop artist and New York native, A Boogie Wit da Hoodie, joins NYXL as its first creator tapped to develop content series, music projects, and other artistic experiences for NYXL’s platforms and social channels. A Boogie will also collaborate with NYXL on traditional film and television projects, as well as custom apparel and merchandise that represent New York and the NYXL lifestyle.
This summer, NYXL and its professional Call of Duty League team, The New York Subliners, will bring competitive esports at the highest level to New York City. The event will take place in July in Brooklyn where teams and fans from across the country will unite to cheer on their favorite players. More information will be announced in the coming weeks.
eSports
CAPCOM’S STREET FIGHTERTM 6 GOING TO COLLEGE THIS FALL
- CSMG will create and operate College Street FighterTM Tour in North America for the 2024-25 academic year
- College conference Street Fighter 6 champions will punch their ticket to the national Collegiate Esports Commissioner’s Cup (CECC) & May Madness in 2025
eSports
R&D rethink needed for sportsbooks to harness esports’ power
Esports betting is still grappling with a perception problem amongst operators. Despite the leaps and bounds in product development made by suppliers – particularly in the last two years – esports hasn’t shaken off the image built in the late 2010s.
Our good friend, Oliver Niner, Head of Sales at PandaScore, has been kind to share the below article with us.
There’s scepticism around esports betting’s value, how well it can actually perform and what’s needed to make it appeal to bettors. A big part of that comes down to perception, which shapes the research and development (R&D) choices made by each operator.
Self-fulfilling prophecy?
Operators who have put the research and development (R&D) resources into esports are seeing excellent growth, while others are still treating it like part of a long tail. The lack of a uniform approach to esports often translates into hesitancy to be bullish and invest in esports.
Whereas in the United States, post-PASPA sports betting has exploded and operators are seeking to capture as much territory and market share as possible because in most cases, you switch the lights on and the money comes in. It’s, of course, good business sense to take opportunities like this – you can apply the same templates used elsewhere on an incredibly lucrative market.
This kind of approach has been attempted for esports and hasn’t found the same success. Granted, the legislation for betting on esports has been somewhat slower than that of sports betting and iGaming.
However, bullish operators have acknowledged the fact that esports hasn’t found the same success in regulated states and asked what can be done differently, while for others, esports has been thrown into the too-hard basket or relegated to the bargain bucket.
For the latter, the fate of the esports vertical becomes a self-fulfilling prophecy – especially if an operator already using a budget esports product that throttles its very growth.
It takes two to tango
When esports is discussed in broader betting circles, you’ll often hear different versions of the same talking point: the problem with esports is no one is doing it well, it doesn’t innovate.
This argument is a case of the pot calling the kettle black. Esports is a driver of innovation, and it is sportsbook R&D that is holding it back.
Multiple suppliers on the market are investing significant resources into R&D, and bullish operators are leveraging these product innovations to acquire new customers and create engagements made for the internet age.
There are understandable reasons why sports betting doesn’t innovate. It’s largely because operators focus on acquisition, entering new territories and spending money on data rights. But the actual R&D on sportsbook products is left lacking, with ever-increasing cost-per-acquisition (CPA) numbers a clear symptom of this.
It means that if an operator does decide to use or acquire an esports specialist supplier but does little to cater its product and attempts to just lay the sports betting template over the top, of course performance will be throttled.
It’s like putting a Ferrari engine in a Prius – no offence to Toyota or Prius owners.
The same problem exists on the platform supplier front. Platforms are understandably focused on compliance and getting customers live, not necessarily improving models or their products.
Even the idea that if you just acquire an innovative company the problem is solved or you have found the solution, doesn’t hold water. In many cases, the company is acquired and plenty of noise is made about it, but there’s little organisational investment in R&D afterwards.
It’s not just in esports
These problems extend to customer acquisition and marketing for most emerging markets, not just esports. There’s a rush to use the same old playbook in newer sectors because it’s easy.
The fantasy vs. house sector in the US is already experiencing an acquisition arms race. As analyst Dustin Gouker points out, deposit match bonuses for new users on fantasy vs house products have jumped from $100 to as high as $500 in some places.
This is the same race that played out in sports betting and despite the costs, there’s little effort from most operators to try something different. There’s less work when you just put the same acquisition template on an emerging sector and call it a day. This seems to be an accepted practice in the industry, for better or for worse.
Esports betting success requires ongoing dialogue
Rather than attempting to wedge esports into hegemonic sportsbook approaches, sportsbooks need to take a completely unique approach.
The fact is the betting sector has barely scratched the surface – communities of esports fans are still dormant. Canadian operator Rivalry has built a successful, esports-first business by embracing the ever-changing internet culture that esports inhabits. French esports organisation Karmine Corp recently sold out a 30,000-person stadium for an event with no prize money up for grabs.
Innovative products developed on the supplier side like microbetting and betbuilders are only half of the equation.
Maximising esports revenues requires institutional investment, ongoing R&D and collaboration between suppliers and operators to create products and experiences. This includes having staff on the operator side that can drive and push the product further, and crucially, rethinking current sportsbook strategies and practices.
Building experiences for betting’s greatest emerging market – one that caters to your future core audience – takes investment, innovation and a willingness to experiment. If the industry wants to make the most of the Millennial and Gen Z audience that will become its primary customers, investment into R&D and close collaboration between suppliers and operators is needed. Many hands makes light work.
eSports
North Star Network Acquires Um Dois Esportes
North Star Network has acquired Um Dois Esportes, a sports coverage and analysis site created from the merger of Gazeta Do Povo and Tribuna do Paraná in 2020.
Julien Josset, co-founder of North Star Network, said: “Thank you to the team at GRPCOM for their faith in us to take the brand forward. Um Dois Esportes is an established and renowned site in Paraná State, and we’re excited about the challenge of developing this asset.
“We’re happy to maintain the collaboration with the existing editorial team, and look forward to working with them, bringing our unique NSN approach, to take UDE forward.”
NSN’s signing of Um Dois Esportes is the media house’s fourth acquisition of 2024, following the recent deals to purchase UK-based SportsMole and MrFixitsTips, as well as Chilean site AlAireLibre, which was announced in March.
The latest addition to the North Star media portfolio joins existing assets including Top Mercato, Afrik-Foot, and Vringe. The Paris-based company already oversees a significant Brazilian operation, delivering over 6 million sessions per month, from the likes of Trivela, Premier League Brasil and Lakers Brasil.
NSN will retain Curitiba-based journalists from the Um Dois Esportes legacy team to maintain the asset’s unique tone and popular coverage of the Paraná sports scene across site and social.
Rafael Mello, Director of GRPCOM, said: “We were surprised by the interest, and initially had no intention of selling Um Dois, but as the conversations evolved, we realised this was a serious group with good intentions. We were very happy to see our project being valued by a large international group and going global, demonstrating the quality of the content we produced.
“We’re also proud that North Star inherited our journalists, who are truly responsible for the success of the product we offer readers every day.”
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