Millennial Esports Corp. (TSXV:GAME) utilizes its gaming franchises and intellectual property to engage millions of new players
SmallCapPower | July 19, 2019: Millennial Esports Corp. (TSXV:GAME) (OTCQB:MLLLF) is a vertically-integrated mobile gaming publisher looking to fuse eSports racing and professional motorsport through a global competition model. GAME utilizes its gaming franchises and intellectual property to engage millions of new players and has aspirations of becoming the market leader in eSports Racing. For more information on the Company visit http://www.millennialesports.com/.
Eden Games is the development arm of Millennial Esports and has a 20-year history of publishing premier racing games as well as an extensive library of industry-leading racing titles. It owns Gear.Club, a racing game played on mobile devices, desktops, and the Nintendo Switch with over 9M downloads and 200k copies sold, which also owns the IP for The World’s Fastest Gamer, a virtual racing competition where players compete for a chance to win a role with the Formula 1 team as one of its official simulator drivers. Gear.Club generates revenue primarily through in-app purchases as well as through sales to gaming retailers.
Acquired by Millennial Esports Corp in June 2017, IDEAS+CARS works with high-profile brands and rights holders in the automotive and motorsports worlds, including Aston Martin, Formula E, Moto GP, and Silverstone Circuits. IDEAS+CARS is responsible for getting notable automotive brands such as McClaren, Mercedes, and Bugatti into Gear.Club. IDEAS+CARS has quickly established itself as a leader within the growing eSports racing environment.
GAME also operates thE Arena, Las Vegas’ first permanent eSports Arena and studio. thE Arena is a 15,000 square foot facility located on the high-traffic Fremont Street, at the Neonopolis, in the heart of downtown Las Vegas. The facility accommodates more than 1,000 people in comfort and provides technical services including facilities, expertise, and manpower for clients such as EA, Amazon.com, and Microsoft. thE Arena has also featured multiple eSports tournaments, such a three-day Halo tournament and a two-day Madden 17 tournament.
Additionally, Millennial Esports operates www.millennialesports.gg, an eSports platform and online community that provides gamers with a variety of competitions, leagues, ladders, and live events.
Finally, GAME has ownership of Stream Hatchet, a data analytics company operating in Barcelona, Spain, which provides meaningful analytics and business intelligence for video game streamers.
The mobile racing market could see significant upside, and GAME is poised to take advantage.
Creating the perfect game for mobile users is a difficult task. There are many factors to consider, with consumer preferences being a primary and difficult factor. Mobile racing meets a criterion that appeals to a large cohort of gaming consumers. The format of these games is simple, making it easy for producers to develop, and theoretically simple for players to pick up and learn. The time demand is also low relative to other genres of games. RPG, Sports, Strategy, and Action/Adventure games all generally require a higher time commitment to meet the given objective(s) of the game, making racing games much easier to play if the player does not want to invest a large amount of time. From the youngest game players to older individuals who have enjoyed video games since the pong days, racing games are hugely popular across a wide variety of demographics.
According to the Newzoo 2017 Global Games Market Report, total mobile gaming revenue is expected to increase to ~$64.9B in the 2020 from its current value of ~$50B. Precedent success of racing games serves as an indicator to the potential upside the mobile racing market possesses, as successful mobile racing games have earned upwards of $150,000/day in revenue once achieving mass market adoption.
Millennial Esports Corporation has a four-step approach to taking advantage of this market opportunity:
- Leverage the experience and expertise of Eden Games to build compelling and free-to-play racing games, such as Gear.Club;
- Attract users to play using enticing marketing, engaging competition, and capturing content updates. One of the most intriguing methods GAME currently uses to attract players is the hosting of World’s Fastest Gamer, a competition where players can compete on Gear.Club for a chance to win a role with the Formula 1 team as one of its official simulator drivers;
- Offer unique and in-app purchases. This is advantageous relative to having users simply pay for the app as it provides GAME with constant revenue generation;
- Continue to enhance the game and keep users engaged.
On July 16, Millennial Esports Corp announced that it is offering mobile gamers the opportunity to compete to earn a wildcard entry into MEC’s World’s Fastest Gamer competition via its Gear.Club mobile racing game. The World’s Fastest Gamer will bring together eight hand-picked eSports racing champions from different gaming titles, gaming platforms, and countries. Two entrants, one from desktop gaming and one from Gear.Club, will complete the 10 finalists.
On July 8, GAME announced a $15M convertible debenture at a rate of 6% (3-year maturity) and the first tranche of $5.3M has already closed. The debenture is convertible at $0.10 per share.
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