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IPL spent over $1 million on this year's event and lost money, they expect it to make money by its fifth year

Posted by SFilp • January 7, 2013 at 3:11 p.m. PST
IPL spent over $1 million on this year's event and lost money, they expect it to make money by its fifth year IGN Pro League's founder, David Ting, recently stated that with this past year's IPL events the company had lost money. However, they made a five-year bet and expects that the IPL series will be making money by the end of the fifth year.

While exact numbers aren't given, IGN stated they spent "well over" $1 million on this past year's events, and that the company lost money on the investment.

Expense

Putting on an event on the scale of an IPL isn’t cheap. IGN put in “well more” than $1 million, according to its founder David Ting. IGN lost money on the event, all told, Ting informed TNW, but the company has made a five-year bet that it is only one year in. It expects in five years that its esports efforts, the larger IPL series, to make money.

That’s a long runway, but one that is feasible. IGN is a division of News Corp, giving it the financial backing that it could need.

There is a simple fact that undergirds esports as a potentially profitable, potentially massively profitable business: demographics. Competitive gaming has oodles of young males in the 18-34 age bracket, a key market segment for advertisers and brands.

As a reminder, back in November it was announced that Capcom games would be joining IPL next season, with both Super Street Fighter Arcade Edition v2012 and Street Fighter X Tekken, and possibly others in the lineup.

Via TheNextWeb and Slasher.

Comments

Wander said on January 7, 2013 at 3:17 p.m.

Put_Marvel_in_IPL

#1
Onislayer said on January 7, 2013 at 3:18 p.m.

I am one of the "oodles" they mentioned in their statement.

#2
Blinky said on January 7, 2013 at 3:20 p.m.

Dang...

#3
BlackReaper201 said on January 7, 2013 at 3:24 p.m.

A direct result of watering down video game execution. Capcom take notes.

#4
SgtKonus said on January 7, 2013 at 3:25 p.m.

@5. You're going to have to explain that one to me.

#5
Rob_the_Ripper said on January 7, 2013 at 3:29 p.m.

SgtKonus, you are "5".

#6
SuperStraightFighter said on January 7, 2013 at 3:30 p.m.

@6

He needs to do some self explanation.

#7
GLKFierce said on January 7, 2013 at 3:31 p.m.

if they make ipl invitational only they can expect to lose money.

#8
kdavis851 said on January 7, 2013 at 3:35 p.m.

@4 What? What does video game execution have to do with this?

#9
Double_A said on January 7, 2013 at 3:36 p.m.

In the title: It's means "it is," possessive is "its."

#10
Kalyx_triaD said on January 7, 2013 at 3:45 p.m.

I simply can't trust a journalistic website that has that kind of money to throw around. Not that IGN hadn't already did a great many things to loss my respect anyway.

#11
HooliganComboFTW said on January 7, 2013 at 4:07 p.m.

#11

So something that has $ to afford an investment makes it bad by default? I understand IGN has many faults, but the "Fat Cats" argument don't really hold much water

#12
AnaboliChris said on January 7, 2013 at 4:08 p.m.

I agree with #12

Marvels hype would make IPL profit off the second year rather than the 5th.

#13
cnorw00d said on January 7, 2013 at 4:09 p.m.

they would have to charge people to watch streams, because most people in the fgc are stream monsters and will never go to a competitve tourney. Like #4 for example

#14
Catalyst said on January 7, 2013 at 4:13 p.m.

@Kalyx_triaD

IGN is owned by News Corp. which is ran by Rupert Murdoch. To say that man has extremely deep pockets would be an understatement.

Just a few other things that News Corp. owns that you may have heard of: 20th Century Fox movie studio (Star Wars films, along with tons of others), Fox broadcasting company (the TV network), Fox News, FX Networks, Fox Sports, Hulu, New York Post, Wall Street Journal and like hundreds more companies.

News Corp. is currently the 91st biggest company in the world, according to CNN.

#15
Typhoontimmy said on January 7, 2013 at 4:18 p.m.

Men ages 18 to 34 are not even a dominate market anymore, much less a key one. That info is horribly outdated. It's going to be hard to make money off of a bunch of broke gamers travling a long way with their broke friends sharing a hotel room trying to make a quick $100.

Poverty fighters don't equal money making demograph.

#16
illness690 said on January 7, 2013 at 4:21 p.m.

(This user was banned.)

#17
DevilMaySpy said on January 7, 2013 at 4:35 p.m.

If they add Marvel, the entrants will come. West Coast Street Fighter tournaments will sustain IPL with the cash prizes alone being a good drawing point, but Marvel will put them over the top.

#18
Exand said on January 7, 2013 at 4:47 p.m.

With SF4 I'm sure they'll do better. Events with big prizes will attract the top players which in turn will attract the fighting game viewers.

But then again, the FPS and RTS gaming crowd are fairly different and don't crossover much with the fighting game crowd. I don't think I've seen the level of hate / vitrol / nastiness that accompanies FPS and RTS gaming in the fighting game community, or at least not nearly in the amount that you see in FPS / RTS games. That makes for good drama though, which in turn attracts followers to the genres.

With the bigger money on the line I just hope the fighting game community stays away from the vitrol that accompanies the other genres :|

#19
pressstart said on January 7, 2013 at 5:08 p.m.

Good for IPL, knowing that they're in it for the long haul. Invest for long term gains, not a quick buck.

#20
i208khonsu said on January 7, 2013 at 5:14 p.m.

CGS had the same outlook... fck, every company has the same outlook. However the recession hit after CGS's second year so they never made it.....

#21
tktktk43 said on January 7, 2013 at 5:36 p.m.

Any game can be played competitively but there are only a hand full of games that players are willing to bet money on. Games like SFIV in which a novice will have very little chance of beating a seasoned player. Games like starcraft and league of legends where strategy and skill can greatly differentiate the best from the average. It's smart for ipl to acquire capcom fighters and like-wise for Capcom to partner with ipl; more exposure can never hurt.

#22
LK said on January 7, 2013 at 6:32 p.m.

@16

Hear hear! Broke ass poverty FGC. Not Infilration, never infiltration,

#23
spotlesseden said on January 8, 2013 at 8:27 a.m.

@16, if it's not 18-34, then what are the age group?

#24
Ihateweeaboos said on January 8, 2013 at 5:42 p.m.

SFxT will be their saving grace if people start playing ver.2013 at much more optimal level.

#25


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