*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.

Share:
More In Sports
Break the Love Raises $2.5 Million Seed Funding Round to Get People Playing Tennis
Next-gen social sports platform Break the Love recently raised $2.5 million in seed funding. Break the Love's platform and iOS app allows users to discover and book group-based tennis activities, to either learn, train, or compete. The new company has already gotten support from a few big names in the world of tennis, including the coach of Naomi Osaka, as well as the United States Tennis Association and the brand Wilson. Break the Love founder and CEO Trisha Goyal joins Cheddar News' Closing Bell to discuss.
Troy Aikman Dishes on His Own Light Beer Brand, Faves for Super Bowl LVI
Hall of Fame quarterback Troy Aikman joined Cheddar's "Between Bells" to talk about his own brand of organic light beer called Eight (his jersey number with the Dallas Cowboys) and explained that he's had an interest in the industry since his days working for a distributor during college. "These brands that are on the market have been there for a long time and [I] felt that it was time for something fresh, something new, and I thought that we could do it in a way that was a better-for-you beer' and that's what we've done," he said. Aikman also provided some insight into the upcoming NFL playoffs and noted that he doesn't see a clear frontrunner for this year's Vince Lombardi trophy.
Mobile Sports Betting Starts in New York on Saturday
It is 'game on' for sports bettors in the state of New York, as mobile betting kicks off on four major betting operating platforms this Saturday. The state, with over 20 million residents, will be the most populous state with legal online sports betting. Max Bichsel, VP of US Business for EmpireStakes.com joins Cheddar News to discuss.
As College Athletes Earn Wealth From NIL, Financial Management Becomes Key
College athletes scored big in 2021 when they were finally allowed to begin earning money based off of their name, image, and likeness, known as NIL. But how can young athletes best manage their money so they can set themselves up for years of success? Nicole Pullen Ross, Head of Goldman Sachs Sports and Entertainment Solutions, joins Cheddar News' Closing Bell to discuss why financial management for college athletes is important, common pitfalls they could run into, and more.
Draftkings on NY Mobile Sports Betting Cannibalizing Business in Neighboring States
On Saturday, New York will join neighboring New Jersey and Connecticut in authorizing mobile sports betting. Matt Kalish, president and co-founder of Draftkings North America, joined Cheddar to talk about the landmark change that is estimated to rake in $500 million in annual tax revenue on a potential billion-dollar market. Kalish also addressed the possibility that legalized sports betting in the Empire State could cannibalize his company's revenues in the bordering states. "It's pretty inconvenient, you know, to go across the border to make a bet. And people were doing it, but I think it really stifled a lot of the opportunity," he said. "So while there's some of that going on, I think really a tremendous amount, like a giant percent, of New York will be very incremental."
Load More