Following the news that Facebook is launching its gaming app two months earlier than planned;
Rupantar Guha, Senior Analyst of Thematic Research at GlobalData, a leading data and analytics company, offers his view on the move:
“By launching early, Facebook is attempting to exploit the increase in streaming caused by the COVID-19 pandemic. However, the platform currently lacks the influential game streamers that attract users to rival services such as Twitch and YouTube. Consequently, it will be forced to rely on amateur streamers to create content. Facebook will aim to convert these relative newcomers into influencers quickly to pull users to the platform, but this will be difficult given its small gaming community.
“Facebook Gaming is focused on mobile game streaming, so its main rival will be YouTube who dominates this area. Amazon’s Twitch service, on the other hand, predominantly streams PC and console-based games. However, the lack of exclusive mobile esports streaming rights will also restrict the growth of Facebook Gaming.
“Facebook will find it difficult to attract those dedicated esports fans that support streamers though donations. This will have an impact on both the platform’s revenues and the earnings potential of affiliated streamers. The app’s promise of ad-free streaming will also put streamers’ earnings in jeopardy, making them less likely to choose Facebook as their streaming platform.”