Progress, Not Perfection: The (Nasdaq) Bell Tolls for FaZe | Intel & Newegg’s Works-in-Progress
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🎮 Progress, Not Perfection 🎮
For Whom the Bell Tolls? It Tolls for FaZe | Intel & Newegg’s Works-in-Progress
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For Whom the Bell Tolls? It Tolls for FaZe
Newly public gaming lifestyle brand is first of its kind
FaZe Clan has officially gone public as the first gaming lifestyle brand to be listed on the Nasdaq. The company is now trading under the ticker FAZE after a launch valued at $725 million. While a landmark event in gaming worthy of celebration, FaZe’s launch also offers a few warnings for brands looking to expand into the mainstream.
From Humble Beginnings
FaZe has come a long way from its days of Call of Duty montages. More than a decade after its 2010 founding, it’s got a roster of popular esports players and streamers that command major followings, not to mention celebrity backers such as Snoop Dogg and Lebron James Jr. It’s among the most valuable esports properties, according to Forbes at least, and dabbles in fashion, crypto, and even food.
- $53 million in revenue in 2021, up from $38 million in 2020
- FaZe claims a fanbase of 500 million, with almost half being international
- 80% are Gen Z
Shaky Foundations
It’s not all good news for FaZe, however, with its value plummeting around 30% in its first day as a public company. In what many will see as a red flag, the brand opted for the reduced regulatory requirements of a SPAC instead of a traditional IPO. Even then, its launch was delayed and original valuation slashed, with FaZe needing a $20 million bridge loan in March.
- $36.9 million net loss in 2021 after a $28.7 million loss in 2020
- Forecasting $90 million in revenue for 2022
Staying True to Oneself
If there is something for other gaming brands to keep an eye on, it’s whether or not FaZe’s pivot away from its traditional identity will backfire. Despite its roots in gaming and reliance on sponsorship for revenue, FaZe is positioning itself as an organization “in the top echelon of a youth culture company,” according to CEO Lee Trink. Non-gaming expansions such as gambling on esports make sense, but others such as ghost kitchens (the food industry isn’t exactly known for its margins) seem ill-advised. Only time will tell, however, if the big game FaZe is talking will pay off.
Supply Drop: Games & Players
Upcoming Games (July 22 – 28)
Autonauts vs Piratebots – PC
Bear and Breakfast – PC, Switch
Capcom Arcade 2nd Stadium – PC, PlayStation, Xbox, Switch
Captain Velvet Meteor: The Jump+ Dimensions – Switch
Immortality – PlayStation, Xbox
Live A Live – Switch
MultiVersus – PC, PlayStation, Xbox
Severed Steel – Xbox
Sweet Transit – PC
Most Anticipated: Developer Player First Game’s answer to Super Smash Bros. — MultiVersus — is a free-to-play (and ripe for microtransactions) arcade fighter that reaches across the Warner Bros (WB) owned franchises for its roster of characters. With almost 20 additional characters reportedly already in the works, players at launch will be able to combine fighters from franchises like Batman, Scooby Doo, Looney Tunes, and even Game of Thrones.
Comms: Social Campaigns
- Intel promotes chance to win $11,000 in prizes in conjunction with Monster Hunter promotional challenge on July 18 (FB, IG)
- CyberPower ran campaign promoting Nvidia GeForce RTX gaming PCs on July 19 (FB, IG)
- Alienware promotes gaming notebooks with gamer brittanynay3 on July 15 (IG)
- Razer promotes perks of joining its RazerStore Rewards program, including exclusive promos and limited edition drops, on July 20 (FB, IG)