Gaming and Livestreaming: Connecting While Distancing

Key takeaways

Gaming activity has risen significantly during social distancing measures, with peak hours achieving a 75% increase.
Game developers are adapting to the influx of players, facing challenges like server outages but also finding ways to keep user engagement high.
Live streaming is uniquely positioned to foster community during this time with real-time engagement, resulting in record activity on platforms like Twitch.
The pandemic has introduced a diverse set of gamers, including families and adults, as gaming becomes a means of connectivity.
The future of gaming looks promising as barriers to entry decrease and new gamers are engaged, potentially leading to long-term growth in the gaming community.

Summary

Surge in Gaming Activity

Since the onset of social distancing, gaming activity has surged dramatically, with a reported 75% increase during peak hours. This spike is not only seen on PC platforms like Steam, which recently saw 20 million concurrent users online, but also across consoles. Game studios have adapted by modifying gameplay mechanics to encourage more solo or home play, with titles like Call of Duty: Warzone breaking records shortly after launch.

Challenges for Game Developers

Game developers are facing unexpected challenges in managing the increase of online players. Services like Xbox Live and Discord experienced outages due to the massive influx of users. Developers are exploring ways to adjust player counts and server capacity in real-time, though this leads to technical struggles. Discord increased its server capacity by 20%, but even that struggled to keep up with demand.

Rise of Live Streaming

Amid the pandemic, live streaming has gained immense popularity, particularly on platforms like Twitch, which saw a 35% increase in broadcasting hours. The unique engagement offered by live streaming—combining the reach of public broadcasts with interactive viewer experiences—is appealing as individuals seek community online. Users are not just passively consuming content but engaging in real-time interactions.

Impact on Gamers and Communities

The pandemic has blurred traditional notions of gamers, highlighting a diverse user base that includes many adults who are rediscovering gaming as a shared family activity. Games like Dungeons and Dragons have gained traction, and mobile gaming is booming with newcomers finding gaming devices in their smartphones. Virtual reality (VR) is also pointed out as a potential area for growth, indicating a shift in how people connect and entertain themselves.

The Future of Gaming

Once the pandemic is over, the hope is that many of these new gamers will stick around due to the lowering barriers to entry in gaming. With the proliferation of cross-platform play, mobile titles, and accessibility of high-quality gaming, there’s potential to maintain a robust gaming community. This could lead to lasting changes in how people utilize gaming for social connection and leisure.

Show notes

Since social distancing measures were first put in place, time spent gaming has gone up—way up. According to a recent report by Verizon, video game usage in the U.S. has risen 75 percent during peak hours. The "stay at home" movement has given way to an upswell of new and returning gamers—as well as new challenges, as online platforms struggle to keep up with the surge.

In this episode, a16z partner Jon Lai joins host Lauren Murrow to talk about how game developers are grappling with skyrocketing numbers, why this may be an inflection point for VR, the surprising transition of professional sports into esports, and why live-streaming is having its moment.

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