Hi everyone, Cody here.

Welcome to the last issue of 2022.

It’s been a hell of a year, from launching Sharpr in January to breaking a number of stories in the sector, and more.

I want to give a huge shoutout to everyone that has subscribed, read my work, and reached out to make a connection with me throughout this past year – it means a lot.

With that being said, I’ll be taking the next week or two off to get refocused and recharge for another year, and we’ll be coming back with a bang. Wishing everyone a happy holiday and an excellent new year.

Now, for the last time in 2022… Let’s get this bread.

In this week’s edition of Sharpr…

Supercell removes loot boxes from Brawl Stars.
GameSquare inks advertising agreement with Buddybet.
Luckbox reported a 70% increase in betting handle and 65% increase in first time depositors.

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Supercell removes loot boxes from Brawl Stars

Finnish game developer Supercell has removed all loot boxes from its mobile game hit Brawl Stars, the company revealed in a video last week.

Loot boxes were officially removed on December 12 alongside a game update.
The game’s rewards system will now be replaced with “different, deterministic rewards.”
Brawl Stars was the fourth game in Supercell's portfolio to surpass $1B in revenue in 2021.

Game lead Frank Keienburg reiterated there will be "no more probabilities, no more random rewards, and no more playing the guessing game when you unlock [in-game characters],” noting that this change will create a fairer experience.

"We're making this change for a few reasons, mainly, moving away from probabilities and chance, which will make things more fair and predictable for you. It also gives you clear and exciting goals every time you play the game."

🦈 Sharpr Take: It’s an interesting move from Supercell to make this change, knowing very well that the “surprise mechanics” in loot boxes can generate significant revenue for game publishers.

With that being said, it’s no surprise that loot boxes have come under such immense scrutiny over the last several years, with many people asking: are these randomized rewards actually any different from gambling? Companies like EA and many others have had to face the music of a variety of different government agencies around the world with consumers voicing similar concerns.

What was surprising (and honestly somewhat humorous), was that the reaction from players was primarily negative, with a majority of fans demanding loot boxes return to the game. A variety of comments on the video announcement range from “now I don't want to play as much as before,” to “[loot boxes] are the reason I love this game,” and my personal favorite: “[loot boxes] are such an iconic part of [Brawl Star’s] history.”

For some, it seems the excitement of opening a loot box outweighed the frustration that came with receiving a low-value reward. As Kotaku put it, “I think some of these people need to stop and think if they really like Brawl Stars or just like pulling a virtual lever on a slot machine.”

While Keienburg says this change is meant to create a more predictable and fair experience, the real motivation behind this could be from surmounting regulation and pressure from various governments. The latest of which includes Australian MP Andrew Wilkie filing a bill to make loot boxes illegal for individuals under the age of 18.

GameSquare inks advertising agreement with Buddybet

Publicly traded esports company GameSquare (owners of Complexity Gaming), have entered an agreement with “social entertainment platform” Buddybet to conduct a partnered advertising campaign.

The Buddybet Gaming Challenge is set to commence in December with Complexity talent, who will go head-to-head in a series of “fun, social challenges.”
The campaign will feature four live broadcasts that will take place in Q1 and highlight Buddybet’s social betting product.

GameSquare CEO Justin Kenna said the partnership showcases the depth of GameSquare’s offering, which includes a series of esports and gaming properties, including the Dallas Cowboys-owned Complexity, Gaming Community Network, Code Red Esports, and more.

"Partnering with Complexity showcases the depth of our product offering and the creative approach that GameSquare's vertically integrated platform can provide to brands seeking to connect with gaming and esports fans,” Kenna said.

🗞 In the news

GRID has promoted Brittany Patton to chief people officer.
Microsoft is working on a patented-system for analyzing viewership from esports competitions.

📈 By the numbers

Luckbox reported a 70% increase in betting handle and 65% increase in first time depositors.
Valorant Champions 2022 boasted a peak viewership of 1.5M, the highest in the first-person shooter category.

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Reach me directly at luongomanagement@gmail.com 📩 or on Twitter 🐦