The International – Dota 2 Championships
dota2.com
dota2.com
Valve basically crowdfunded their tournament prize pool. They started out by offering an initial $1.6M prize pool, but gave every dota 2 player the option of buying a "compendium" for $10, and each compendium increases the prize pool by $2.50. That means Valve makes $7.50 per compendium sold.
I just ran the math, and as of right now there have been ($3,365,563 - $1,600,000)/$2.50 = 706,255 compendiums purchased. Since Valve earns $7.50 per compendium, that means they just made $5.3M in a couple days. And they're set to make even more next year, since the Dota 2 playerbase has some nice exponential growth: http://steamgraph.net/index.php?action=graph&appid=570&from=...
I'm not sure there are any articles about this yet, because this news is so new. I wish I had a decent article to submit to HN instead of this link. But this is certainly newsworthy, so it's a matter of time before you start hearing other news sources talking about it.
EDIT: If you're looking to see what a Dota tournament is like, here are two great matches from last year:
Game 1 https://www.youtube.com/watch?v=OaGSi1YTA-E
Game 3 https://www.youtube.com/watch?v=ajQuCZx-yx8
The production quality is so good!
EDIT2: Also, Valve made a movie called "Free to Play" which documents what life is like for top-tier Dota players: http://www.youtube.com/watch?v=UjZYMI1zB9s
Also, the TI4 games are free to watch for any and every one and Compendium is just a ticket with a lot of goodies and adds to the prize pool.
It's interesting to note that last year Valve was able to raise $1,274,380 over a three month period. I've been around Esports for a long time and I truly feel we're about to hit the golden age. Exciting stuff!
A major factor here is probably that Valve has explicitly gamified contribution by introducing a Compendium "level" controlling access to some bonus content as it increases, which can be increased either by participating in certain Compendium content or, most importantly, by paying extra. :)
Valve's profit is probably a function of the current prize pool, right? So it seems like they should have made at least 2x above what they're offering. Since the pool increased by $1.76M, it seems likely they've made at least $3.5M. But I'm just speculating based on intuition. If you have hard details, please post 'em!
I think this segment of the gaming arena will really hot up when Blizzard release their competing title directly against Dota2 and leage of Legends.
What's Blizzard's new title? Thanks for pointing that out!
Lot's of people are complaining about the people not speaking in English on Euro and US servers and trolling other all the way. Blizzard needs to keep attention on this point as their did on other games.
You cannot stop a person from joining a English server if he doesn't want to. MOBA games need to be a team play and that issue is hard to solve, unless they come with a real time language transcriber/translator for in-game text chat. That tool is clearly a possible thing to do.[1]
Since thats a third party tool it isn't perfect but platform developers could work on something similar and smart.
[1] Dota2 Translator http://sletmo.com/ / https://github.com/patriksletmo/Dota2Translator
So there is no easy solution for this problem.
[0] http://en.wikipedia.org/wiki/Steve_Feak [1] http://en.wikipedia.org/wiki/IceFrog
I would argue that Icefrog's version was the most popular incarnation. It may have started off as simply an inheritance of Allstars, but Icefrog is the one that actually balanced it and made it something that was competitive. The popularity skyrocketed after Icefrog took over for Guinsoo.
>they were working on Starcraft 2
If they were then SC2 did great for the company.
1M copies were sold in the first 24hours and around 3M in the first month itself.
The expansion Heart of the Swarm sold 1.1M in the first 2days of launch.
Dota2 on the other hand is free-to-play, of course there are items to purchase in game but since it isn't required to buy to play most play the game without buying anything.
Even if you don't know anything about Doom, you'll have no trouble following this: https://www.youtube.com/watch?v=hcSj0lk-vEo
...I can't believe I'm recommending anything - I don't even like spectator sports. But I used to play doom back when e-sports were still science-fiction.
FPS has a lot of this, but it gives the player a more visceral experience- and as a trade-off, makes it more difficult for a spectator to "watch the game".
The part about having to understand some of the lingo and all? Well, football (both US & EU) is completely obtuse to the uninitiated.
If you watch Free to Play (linked above) it helps clarify things somewhat. (It's pretty interesting anyway.) But it may be an unsolvable problem, which would be unfortunate.
Then again, the tournament scene is still in its nascent stages. Once the production quality goes up some more, there may be a brief intro for each hero selected that describes to the audience what the hero can do and what its items usually are and what they do.
It might happen that way, in one single game the teams go through 20 heroes of which 5 are banned by both sides and 5 are picked by both sides.
Without that same depth of gameplay, dota would not be nearly as popular. I'm not sure how you go about resolving that - maybe there is some better balance?
If you play or played a FPS game, you can literally watch any FPS game no matter how complicated the cast is, sooner or later you would get it.
In case of Dota2 or rather any game of that genre, you need to have played any MOBA ( Multiplayer online battle arena ) game.
Any Dota2 player can watch a League of Legends game, they are not the same but similar as the basic of a MOBA game are clear to that dota2 player. They just need to watch and understand the Heroes and their spells. Rest gameplay mechanics, inventory items etc are comparatively easy to follow.
This is important for eSports. Having to learn a new game every 3-4 years so you can follow along is difficult for viewers. It also allows professional players who invest the training to transfer their skills more easily.
It's different with other companies -- Blizzard, for example, created a new game in StarCraft II. It shares a few similarities with Brood War, but the differences are vast. I really, really like Valve's approach.
It's just started to deviate away from that now, but it is kept remarkably similar - bugs and all. For example, using the item that teleports you a set distance forward teleports you only 80% of its max distance if you click beyond its max.
The other one is 'orb effects' - certain enchantments which add some effect on your standard attack. They do not stack with one another - only one works at a time - except for one of them [1] which does stack with only the life-steal ones.
This makes dota have a learning cliff more than a learning curve, but the depth of the gameplay is pretty crazy as a result.
All the changes that you see right now in dota2 are now map updates for dota1 ( yes the crazy 6.80 update which essentially changes a lot of gameplay was a (map) update in dota 1 too )
For example, The orb effect had always been that way. 'Orb effect does not stack' Do you remember that on items in dota1? It used to explicitly say that in the item description in dota1. In dota2 they explain it a bit better.
One difference, for example, is the interaction between naga siren's net and manta style - in dota 1 it dispells the net, but not dota 2. There are subtle differences like that but they are the exception.
I couldn't find any specific rumors or estimates that are more recent than 2011. I did find a VentureBeat article from Jan 22 2014 that said that Dota 2 made $80 M and TF2 made almost double that at $139 M in 2013.[1]
Pricewaterhouse Coopers "Global entertainment and media outlook: 2013 - 2017" estimates that globally "entertainment and media" will grow at a compound annual growth rate of 5.6% over the next five years.[2]
So, even if you assume that they won't release Left4Dead 3, Half Life 3, etc over the next few years, just from Dota2 and TF2 alone their revenue for 2014 is likely to be more than $230 M. And that's a bare minimum guess. It's likely to be much more than that. But that's the lower bound of the estimate I guess.
Not bad.
[1] http://venturebeat.com/2014/01/22/doat-2-made-around-80-mill... [2] https://www.pwc.com/gx/en/global-entertainment-media-outlook...
And then the asinine fees to sell an item to another player...
And then the asinine fees they take for community map rotations...
And then the asinine fees they take for community skins and items...
It's both amazing and disgusting how much money Valve makes from their little value-add services.