Newzoo Cancels Its Report on the Esports Industry. Is a Storm Brewing for the Industry?

newzoo esports

Newzoo has been regularly mentioned in most of the news related to the esports industry. It’s because Newzoo is one of (if not) the best data providers and analytic for the rapidly growing industry. However, it has cancelled its esports data reports. This news was first featured in The Esports Advocate.

To The Esports Advocate, Newzoo gave its statement:

“Last year, we made the decision to sunset some of our products, including two of our consumer insights products as well as our Global Esports, Cloud, and Mobile Reports. Our clients, prospects, and partners were informed about this change to our product portfolio last year.

Related to this, we have discontinued updating our Global Esports revenue model. One of the inputs for this model was the financial data we received from our esports partners. Since we discontinued the model, the esports partnership program was no longer necessary and we are not partnered with any esports teams at this point.

Newzoo’s mission is to provide the best tools, data, and guidance to thrive in the games market. For most of our clients, this means helping them to develop, launch, and operate successful games. Last year, we spoke to many clients about how our data adds the most value to their day-to-day work and decision making. From these conversations, it became clear that we can add the most value by providing game-level engagement and revenue data, gamer research, and games market trends and forecasts. On the report side specifically, most of our clients would normally look at cloud, esports, mobile as part of their whole games market strategy which led us to consolidate these insights into our long-standing global games market report.

Consolidating these products has allowed us to invest more resources into the data that adds the most value to our clients. As part of this, we have been investing heavily in the Newzoo platform, which we relaunched last week with added functionality.

We want to accelerate the future of gaming and we believe that it is very much tied to the future of media and entertainment. Based on this, we have created new segmentations around media platforms and entertainment types that take consumer engagement as the starting point and help to put games in a broader perspective. These insights are available in the attached report.”

Later on, Esports Insider claimed that Newzoo has given its confirmation on the cancellation.

Check out my other article: Olympic Games Announced Its List of Esports Games, and It’s Okay if It’s Weird

 

What could it mean for the esports industry?

Back in 2016, Newzoo declared that it had begun an esports partnership initiative and signed a number of partnerships. Through the program, esports organizations provided the business with revenue and other information that it used to create its “Esports Audience and Revenue Model” and “Global Esports Market” reports, which are available only to subscribers.

In addition to other statistics and research, Newzoo’s esports reports provided a breakdown of the revenue generated by the esports industry currently and in the future. For both endemic and mainstream media sources, its results have consistently served as a go-to source of information on the size of the esports industry over the years.

The complete report was made available through a subscription model, but Newzoo also published a condensed, free-to-access version that only included the top line data.

It’s true that there is no clear explanation why Newzoo discontinued its report. However, a company won’t cancel a product that sells well in the market. So, does that mean the report didn’t sell well? I don’t know. However, if it’s true, it could be alarming news for the esports industry in general.

Because, data reports and analytics should be in high demand for profitable industries. While Newzoo is the leading company in that area. However, it might not be the case since any product could be cancelled for many reasons, unrelated to the wider ecosystem. Let’s just hope it’s the second reason.

Feat Image: Courtesy of Newzoo

Yabes Elia

Yabes Elia

An empath, a jolly writer, a patient reader & listener, a data observer, and a stoic mentor

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.