Video gamers who boast about their skills can now put their money where their mouse is – a new service lets you place a wager to compete in online matches and tournaments against other willing participants.
Virgin Gaming was unveiled at this year’s Electronic Entertainment Expo (E3) in Los Angeles, with billionaire entrepreneur Sir Richard Branson on hand to announce $1 million dollars in cash and prizes for tournaments over the next 12 months.
Competitive console gamers can sign up for a free account at the website, but only those age 18 and over could enter cash challenges — up to $1,000 per game — in 39 out of the 50 states that allow for games of skill (as opposed to chance, which are outlawed). More than a dozen Xbox 360 and PlayStation 3 video games are supported at this time, including Microsoft Game Studios’ Halo 3, Sony Computer Entertainment America’s ModNation Racers and EA Sports’ Madden NFL 10.
“The idea of being able to play competitively with consoles over the Internet, against people with the same skill level, is incredibly attractive,” said Branson, in a sit-down interview at L.A’s trendy Skybar.
Gamers can also play for free, which also makes them eligible for “spectacular prizes over time,” assures Branson: “Virgin obviously has the ability to offer places like Necker Island [Branson's own private island], submarines and spacecraft.” Yes, he said spacecraft.
Those who accept a wager to play a game – such as $10 to the winner of FIFA Soccer 10 – will find their account credited with the winnings following the match. An automated verification system ensures the correct results based on data provided by the online game, tied to the player’s Gamertag (Xbox Live name) or PSN ID (for PlayStation Network). Players can assess would-be challengers through a skill rating system based on actual wins, as well as reputation feedback.
Funds can be deposited into one’s account via credit card, debit checking cards or through PayPal. For all cash challenges, Virgin Gaming takes a 12 percent game management fee from the total winnings.
Virgin Gaming is a rebranding of sorts for WorldGaming.com, a matchmaking service that has overseen more than 80,000 cash matches since it launched in May of 2009. The site was conceived in 2006 by roommates Zack Zeldin and William Levy (now 26 and 27 years of age, respectively), after finding it laborious to drive around their Florida college campus in search of multiplayer gaming tournaments.
However, it yet remains to be seen if the service will succeed. As Game Theory host Scott Steinberg points out in recent CNN article Branson to Offer $1 million in Online Gaming Prizes, this isn’t Virgin’s first foray into the video game field, competition in the space is high, and it’s a market niche that’s been addressed several times before – always unsuccessfully. (The jury remains out on whether or not there’s even sizable interest amongst players in this kind of reward-based tournament service, or how large the potential audience may be.) Wedbush Morgan analyst has also voiced his skepticism as to whether or not the mass market is ready to accept skill-based competitive game wagering, especially in a down economy.
Only time will tell, but for now, it’s definitely a roll of the (virtual) dice.
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Scott Steinberg is the CEO of video game consulting firm TechSavvy Global, and founder of GameExec magazine and Game Industry TV. Hailed as a top technology and video game expert by dozens of publications from USA Today to Forbes and NPR, he’s covered the field for 400+ outlets from Playboy to Rolling Stone. A frequent on-air analyst for networks like ABC, CBS, NBC and CNN, he’s also the author of Video Game Marketing and PR.
So much for game publishing. It’s interesting that Branson, who initially made a splash in the business of content, pointed out that the best opportunities in gaming today have nothing to do with actually making games. Not sure I think this venture’s bound for massive success, but it does underscore the point that the market may be grossly over-saturated on all fronts.
The real potential here seems to be in tournaments – but by not being seamlessly integrated with the consoles, Virgin could face an uphill battle. It’s really hard to get a read on whether this is a serious push by Branson back into gaming or a flight of fancy.
I agree with Mr. Morris. From what I little I do know about Sir Branson, I can tell that he is the most over-ambitious dude on the planet. (Not that there is anything wrong with that) Just doesn’t seem like the right time, or place, to dump millions and millions of his “hard earned” skrilla.