3 Trends Fueling A New Entertainment Revolution

The Chinese tech giant responsible for WeChat and QQ has not ignored the video game boom.

Not only is its subsidiary Riot Games responsible for one of the world’s most played esports, League of Legends, boasting over 89 million players, it has also taken significant stakes in other game developers.

Tencent’s portfolio includes shares in Activision, Ubisoft, and even a 40 percent stake in Epic Games, producer of Fortnite.

#3 – Wheelin’ and Dealin’” data-reactid=”30″>Another major player in the Asian market is Tencent Holdings (OTC:TCEHY).

The Chinese tech giant responsible for WeChat and QQ has not ignored the video game boom.

Not only is its subsidiary Riot Games responsible for one of the world’s most played esports, League of Legends, boasting over 89 million players, it has also taken significant stakes in other game developers.

Tencent’s portfolio includes shares in Activision, Ubisoft, and even a 40 percent stake in Epic Games, producer of Fortnite.

#3 – Wheelin’ and Dealin’

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The growth of the esports craze has led to a number of massive deals in the sector. From Amazon’s billion-dollar Twitch splurge to Tencent’s string of strategic acquisitions, staying ahead of the pack is an expensive – but lucrative – business.

Though Amazon and Tencent might get the most attention in this field, smaller companies like Torque Esports (TSX.V:GAME, OTCMKTS:MLLLD) are making major moves, as well.

Torque, for its part, has made headlines with its&nbsp;acquisitions&nbsp;of Eden Games, a developer whose hit mobile game Gear Club has over 6 million downloads to date, and it’s nearly completed deal which will also give it a major stake in Allinsports, a motorsport simulator manufacturer, founded by ex-Formula 1 engineer Anton Stipinovich.

Torque’s focus on the motorsports niche in esports allowed it to create one of the sector’s most popular&nbsp; racing events: The World’s Fastest Gamer.

In just the first season of the competitive racing league, with a prize worth $1 million, World’s Fastest Gamer became a global hit.

It was broadcast in 48 countries through 86 global broadcasters, including ESPN, CNBC and Fox Sports. The show, sponsored by McLaren F1, reached an estimated 400 million households.” data-reactid=”31″>The growth of the esports craze has led to a number of massive deals in the sector. From Amazon’s billion-dollar Twitch splurge to Tencent’s string of strategic acquisitions, staying ahead of the pack is an expensive – but lucrative – business.

Though Amazon and Tencent might get the most attention in this field, smaller companies like Torque Esports (TSX.V:GAME, OTCMKTS:MLLLD) are making major moves, as well.

Torque, for its part, has made headlines with its acquisitions of Eden Games, a developer whose hit mobile game Gear Club has over 6 million downloads to date, and it’s nearly completed deal which will also give it a major stake in Allinsports, a motorsport simulator manufacturer, founded by ex-Formula 1 engineer Anton Stipinovich.

Torque’s focus on the motorsports niche in esports allowed it to create one of the sector’s most popular  racing events: The World’s Fastest Gamer.

In just the first season of the competitive racing league, with a prize worth $1 million, World’s Fastest Gamer became a global hit.

It was broadcast in 48 countries through 86 global broadcasters, including ESPN, CNBC and Fox Sports. The show, sponsored by McLaren F1, reached an estimated 400 million households.

And it’s wheeling and dealing doesn’t end there. It’s also secured major partnerships with Nintendo and Porsche through its acquisitions.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As an industry, video games have surpassed nearly every other form of entertainment. Revenue has tripled since 2000—rising from less than $50 billion to&nbsp;more than $120 billion per year.” data-reactid=”33″>As an industry, video games have surpassed nearly every other form of entertainment. Revenue has tripled since 2000—rising from less than $50 billion to more than $120 billion per year.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Estimates have the industry doubling again,&nbsp;to $300 billion by 2025.” data-reactid=”34″>Estimates have the industry doubling again, to $300 billion by 2025.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Other companies to watch as esports take the global stage:

&nbsp;Enthusiast Gaming (TSX:EGLX.V) is one of the most impressive video game communities on the web. Thanks to it’s aggressive acquisition strategy, it has a web of over 80 websites reaching more than 150 million people every month. It is also making significant moves in the esports arena, hosting wildly attended events in Canada, including the country’s largest gaming expo EGLX. Enthusiast also leverages its reach to provide advertisers with unique solutions across a wide array of publishers.” data-reactid=”35″>Other companies to watch as esports take the global stage:

 Enthusiast Gaming (TSX:EGLX.V) is one of the most impressive video game communities on the web. Thanks to it’s aggressive acquisition strategy, it has a web of over 80 websites reaching more than 150 million people every month. It is also making significant moves in the esports arena, hosting wildly attended events in Canada, including the country’s largest gaming expo EGLX. Enthusiast also leverages its reach to provide advertisers with unique solutions across a wide array of publishers.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="ePlay Digital Inc. (CSE:EPY) creates technology that helps TV networks, esports teams and leagues and even venues cut through the noise to reach their target audience. The company brings together multiple platforms to create engagement across social media, traditional media, streaming, and more. With a team built from sports, esports, and gaming experts, ePlay knows the video game industry inside and out. That’s why they’ve secured partnerships with companies including Time Warner Cable, ESPN, Sony Pictures, AXS TV, Intel, AXN, Fiat, CBS, Cineplex, and others.” data-reactid=”36″>ePlay Digital Inc. (CSE:EPY) creates technology that helps TV networks, esports teams and leagues and even venues cut through the noise to reach their target audience. The company brings together multiple platforms to create engagement across social media, traditional media, streaming, and more. With a team built from sports, esports, and gaming experts, ePlay knows the video game industry inside and out. That’s why they’ve secured partnerships with companies including Time Warner Cable, ESPN, Sony Pictures, AXS TV, Intel, AXN, Fiat, CBS, Cineplex, and others.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="EXFO Inc (TSX:EXFO) isn’t new to the Canadian tech sector. The company was founded in 1985 in Quebec City, and its original products were portable testing products for optical networks. Since then, the company has acquired and build 3G, LTE, protocol, copper/xDSL, IMS, and VoIP test and service assurance products, all vital pieces of the gaming revolution.” data-reactid=”37″>EXFO Inc (TSX:EXFO) isn’t new to the Canadian tech sector. The company was founded in 1985 in Quebec City, and its original products were portable testing products for optical networks. Since then, the company has acquired and build 3G, LTE, protocol, copper/xDSL, IMS, and VoIP test and service assurance products, all vital pieces of the gaming revolution.

Recent developments from EXFO are promising for long term growth potential. The new baseband unit emulation technology which is sure to be adopted on a large scale, as the tech offers operators a reduction of costs and a faster revenue stream. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Evergreen Gaming (TSX.V:TNA) has succeeded in bringing back its total debt from $7 million to $5.4 million at the end of December 2018. Its cash flow in the meantime has been relatively steady at $5.8 million, giving lenders reason enough to issue new debt to the company in case it needs it for expansion activities.” data-reactid=”39″>Evergreen Gaming (TSX.V:TNA) has succeeded in bringing back its total debt from $7 million to $5.4 million at the end of December 2018. Its cash flow in the meantime has been relatively steady at $5.8 million, giving lenders reason enough to issue new debt to the company in case it needs it for expansion activities.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Compared to its larger competitors in Nevada and the Great Canadian Gaming Corporation, the company is just a small player, but its focus and returns YTD have been strong, giving investors enough reason to keep an eye on this small but sound player.

Absolute Software Corporation (TSX:ABT) offers endpoint security and data risk-management solutions. And it looks like it’s on a path of securing strong new customers. The pipeline looks great, and forecasts have been increased.” data-reactid=”40″>Compared to its larger competitors in Nevada and the Great Canadian Gaming Corporation, the company is just a small player, but its focus and returns YTD have been strong, giving investors enough reason to keep an eye on this small but sound player.

Absolute Software Corporation (TSX:ABT) offers endpoint security and data risk-management solutions. And it looks like it’s on a path of securing strong new customers. The pipeline looks great, and forecasts have been increased.

It’s company that stands out a bit due to its backdoor potential. Some of the world’s leading industries trust Absolute with their most important security challenges, and nowhere is that task more essential than in the gaming industry, where so much rides on digital platforms.

By. Nick Hawes

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