Stinger Report - 6/07/2020

TSR Newsletter | July 6, 2020

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-- The Stinger Report: Service Message --

The Global Digital Out-Of-Home Entertainment (DOE) Sector covered in The Stinger Report .

Wishing all our subscribers, famlies, loved ones, (and those serving) stay safe and well.

Kevin Williams

Publisher, The Stinger Report (TSR)

Entertainment's Shifting Paradigm

Part 9 | # 1027

Report Skinny

The latest update on the momentous changes impacting all aspects of the global Out-of-Home Entertainment arena. In this ninth instalment, we look at the deployment of Frictionless technology as a support to new COVID requirements in entertainment, we also look at the explosion of new immersive and VR platforms, and issues in the changed market

Main Report

The news and developments come thick and fast as the amusement and attraction industry exits hibernation and starts to prepare for busines (and venues open in those territories that have come to full force). The Stinger Report has been inundated with information on these developments and has worked hard to place the carious developments in areas of corresponding effect.

- Connecting with the Players

The new normal that has seen the erection of partitions for “ Physical Distancing ”, the employing of new cleaning and sanitizing procedures, and the abandonment of certain activities. We are also seeing the emergence of new technologies to address the problems faced. One of these is regarding “ Frictionless ” guest interaction. Developer Ultraleap (comprising the ‘ Leap Motion ’ and ‘ Ultrahaptics ’ product ranges) announced in June a major installation of their technology for the ‘ Cinema ’ sector. In an agreement, CEN Media Group has signed with Ultraleap to develop and install a brand new interactive digital signage offering standard display advertising and touchless interactive content. The system will be placed in ten cinema locations managed by CEN – the kiosks employ hand tracking and “ virtual touch ” haptics, making interaction natural, safe, and effortless, and so voiding the need for excessive cleaning procedures. Content for this gesture-controlled kiosk is being developed in partnership with Ultraleap and AdMobilize .

Another technology that is emerging as a solution to help with guest interactions has been “ Smart Wearables ” – the use of wristbands had grown in recent months, but the technology seems to be about to gain major traction in the post-pandemic market. It was announced that Connect&GO had launched a new range called ‘ Safeband ’ – a Near-Field Communication (NFC) wristband, also employing Bluetooth Low Energy (BLE) that generates an alert by a visual indicator, along with vibration if the user gets into less than two-meter contact with another users. This system also generates a report of the users’ interactions on a specialist app dashboard. Along with supporting physical distancing precautions, the system is also used as access control and can be used to purchase items though its contactless payment feature. Connect&GO is partnering with Videotron on the manufacturer and development of the platform.

At the same time, the deployment of smart wearables as an element in the gamification of the environment was brought closer, as test footage of Universal Studios Japan’s new gate was revealed. More information on ‘Super Nintendo World’ was leaked, as the Japanese attraction started to carry out tests of their venue. Along with the lighting and moving show set, more information was revealed on the smart wearables that guests to the park can use. Called ‘ Power Up Bands ’, the devices use NFC to interact with elements of the park, as the players attempt to collect items, and achieve scores interacting though their wristband that also collects their score to be used in conjunction with a special smartphone app. This will be the biggest implementation of a “technology treasure hunt” since the concept was first experimented with ‘ Kim Possible Adventure ’ at Disney World in 2006. The Japanese Universal complex is still aiming to open its doors later this year.

One aspect of smart wearables is tracking data accumulated, and this was a concern voiced with the trace tracking apps proposed to be deployed in tracking contact with possible infected groups deployed in China, and being looked into across other countries. This concern was illustrated by the news in Intergame that, in the Netherlands, that legislation is being put in place to make the operators in their country collect data on their visitors, including their name, date of birth, their national citizens number, and the frequency of their visits. This information seen as being useful towards tracking possible infections. But it was reported in the Gaming in Holland newsletter, that the Dutch arcade scene was not happy at the danger of possible breaches in privacy that this action makes possible, with concerns voiced by the associations of the region. Concerns were across all aspects of business over the use of tracking data to encroach on civil liberties.

The expansion of immersive interactives, like augmented reality solutions, has allowed venues to offer richer “ Edutainment ” experiences. One such example can be found at Brevard Zoo in Melbourne, Florida. Their recently opened exhibit, “ Rainforest Revealed ”, features a frictionless AR experience that educates guests on the role pacu fish play in maintaining a healthy ecosystem. Falcon’s Creative Group developed this unique presentation, which utilizes advanced techniques to achieve a high level of flexibility. A designated operator presents the AR experience to visitors through a tablet PC, able to control the timing of all animations, events, and other elements in the real-time AR content. Visitors can watch the action unfold on a large monitor that is situated above an actual pacu habitat. The operator provides an interactive and custom-tailored demonstration, with the ability to trigger various fun facts within the virtual world by selecting one of several info beacons on the tablet. This kind of experience should see growth in a post-lockdown world, as venues look to touch-free solutions to draw in larger crowds. 

Mixed Reality (MR) has also seen new development, with companies such as Valo Motion announcing their latest release, with their AR-based climbing game called ‘ Hullaballoon ’ – the company’s projection mapped, tracked climbing wall system adds this new game to the library of their ‘ ValoClimb ’ platform. It offers between one and four players the chance to take part in a balloon popping game, trying to collect a high score. Valo has developed the game to work with a touchscreen operator feature and scores can be shared quickly via the venue and guest social media app. This kiosk also allows the game to be customized for party events and promotions. This projection-based experience is another aspect of the MR scene that offers a unique and compelling game experience without the need for headsets.

- Positioning for The Future

It was inevitable that the LBE VR scene would recommence business after the involuntary shutdown for over three months for some. Questions regarding if LBE VR would be able to style draw interest in a post-pandemic market were soon dismissed as, first in Asia and then in the West, reopening locations operating immersive entertainment saw a steady return of attendance numbers.

This continued interest, post-lockdown, to play the latest VR platforms in a commercial entertainment setting was illustrated recently by data collected from VR manufacturer Virtuix . The company revealed that some 12 of their 26 ‘ Omni Arena ’ VR enclosures had reopened at the time of reporting (June 17, 2020) – and that some had been opened for a period of three or more weeks. During that time, these systems had seen game utilization in venues at 95-percent on average compared to pre-lockdown levels and had generated $2,400-per-week in revenue, averaging 70-percent of that achieved prior to the crisis. This continuation in interest and revenue generation is expected to grow, with the other machines at venues coming back on stream.

In order to support this return to profitable business, Virtuix also revealed that they will be continuing to grow their eSports support of the ‘Omni Arena ’ – recommencing in July to offer a total of $100,000 in cash prizes. Players will compete, in weekly and monthly contests, for $8,000 in prize money each month. Prior to lockdown, the company reported that 43-percent of Omni Arena players visited the venue specifically to take part in the eSports competition. The company was also offering special discount packages to new customers to support the return to business, including free-of-charge launch marketing and signage packages

Interest to continue investing in new LBE VR packages was reflected with the news that Vertigo Arcades had partnered with game developer CrazyBunch to launch their new VR arcade title, ‘ Ghost Patrol VR ’. It is released on the ‘ Vertigo Arcades Haze ’ LB VR launcher platform, as a backpack PC system, with four-players navigating the virtual arena in a 20-minute experience. The announcement from Vertigo Arcade is that the game will be released at the end of June to all VR arcades, offered at a release discount from June and through the whole month of July. As part of their COVID-19 relief package, the game is helping attract players back to the arcades. Vertigo Arcades was spun out from the consumer game developer and publisher, responsible for the ‘ Arizona Sunshine ’ VR experience, focused on publishing content for the VR arcade scene through their platform. (The Stinger Report plans to make a special visit to a location running the new game in the coming days, and will report back).

Further developments in the LBR VR scene were revealed with the announcement of a new major investment into LBE VR from a consumer game developer. Zero Latency announced the partnership with Ubisoft , to create a new free-roaming (Arena Scale) VR game experience based on the game developer’s IP. Though details on which of Ubisoft ’s AAA brand will be deployed in this new VR experience, it was revealed that this new platform will be launched in 2021, exclusively through the 45 venues using the Zero Latency platform. Ubisoft has had a continued interest in leveraging its brands into LBE (not just VR), with the company working initially with LAI Games on their ‘ Virtual Rabbid’s – Big Ride ’, and also with TRIOTECH with their ‘ Team Battle ’ and ‘ VR Maze ’ platforms. The company also created Ubisoft Escape Games division, dedicated to selling their VR escape gaming platform promoting their ‘ Assassins Creed ’ and ‘ Prince of Persia ’ AAA brands.

Another of the VR developers who is working hard on defining the future of the LBE VR sector, is VRstudios – the company recently revealed their latest developments, building on the advancement of their Attraction Management Platform (AMP). The company lifted the veil on their latest new development with ‘ VRstudios Sports ’, a framework that turns competitive real-world, physically active sports, into immersive VR attractions. This is seen with the launch of the first in a series of new ‘ VRstudios Sports ’ attractions, with ‘ Hoops Madness ’, a game focused on physics-based gaming and interactions. This is one of the first ever true simulations of basketball for out-of-home VR, packaged under the new sports line and supported through AMP, with a dedicated competitive eSports platform. VRstudios intends to roll out several new competitive real-world, active sports, reimagined for LBE VR deployment, with some new announcements in the coming weeks.

Not all news surrounding VR amusement and attractions was positive in the final weeks of lockdown. In a surprise development, it was revealed that one of the success stories of VR content had been removed for usage in the commercial entertainment scene. Facebook ’s recent acquisition, Beat Games , reported the removal of the agreement to use their popular ‘ Beat Saber ’, the VR music rhythm game, for commercial usage; having previously issued numerous licensing agreements.

Prior to being acquired, Beat Games had agreed a strict regimen of licenses in this sector. The first with Korea-based SKonec Entertainment , who created an only-for-Asia VR upright cabinet version. Then licensed to VRsenal , who developed their striking ‘ Beat Saber Arcade ’ VR platform for Western deployment, which was finally released after a difficult birthing process of their virtual arcade cabinet. Finally Beat Games’ agents licensed the music game for VR arcades, initially signing Exit Reality (who subsequently closed operations), and then popular content distributors SpringboardVR , SynthesisVR , CTRL-V , Private Lable and MK2 . But an email announcement issued on June 27th from Beat Games terminated this availability, and the corresponding web page for Commercial Usage agreements was shuttered.

Licensed distributors to the VR arcade sector would later announce they would remove the game from their libraries from the beginning of July. This hit particularly hard as several VR arcades were promoting ‘ Beat Saber ’ game tournaments as part of their reopening. One of the latest VR content and management providers, SynthesisVR , sent out an official statement to all of their 250 some operators regarding the removal of the popular title from their library – stating that Beat Games faced serious distribution and licensing issues that were outside of their abilities to solve, and they decided to effectively withdraw all their commercial licenses by the end of July.

This news comes as a surprise, especially as Asian licensee SKonec had recently presented their version of the game at the JAEPO’20 exhibition in Japan, in affiliation with SEGA amusement, agreeing to partner to sell the VR cabinet into the Japanese market. Sources suggested that SKonec would now be ceasing production of this platform. During AmuseExpo’20, The Stinger reported on distributors Shaffer Distributing and American Vending Sales partnering with VRsenal to represent their ‘ Beat Saber Arcad e’ hardware – as Harry Levy Distribution had undertaken in Europe. Speaking with VRsenal representatives after the news, they confirmed their over 200 machines sold came with perpetual Beat Saber licenses, and so could continue to be operated.

Even with statements regarding VR arcade from a few distributors, official information was scarce regarding the sudden termination. But The Stinger Report was able to speak with a well-placed representative of Beat Games , who commented on the situation, stating that the company was recalibrating to assess the legal and technical issues so that they may present a more native product for the LBE market. When this more suitable product could be seen return to the LBE market will obviously be dependent on several issues, including direction from their new parent. We hope to report on more positive news for the market from Beat Games in the coming months, however this current situation adds more issues for some VR arcade sector emerging from a difficult lockdown.

- New Levels of Precautions

One of the emerging aspects of the post-COVID-19 landscape in the deployment of entertainment, is the level of cleaning and sanitisation which is being employed to ensure a safe and reliable experience. One of the new mediums that has been employed (and much reported on), is that of Ultraviolet-C lighting radiation-based disinfection. With its ability to clean the complicated structure of VR headsets, the market is growing for this deployment, and The Stinger Report charts the latest entrants.

One of the first to have released a UV-C platform for VR headsets was Cleanbox Technology , and the company had already established a foothold into the LBE VR scene long before the global health crisis. Recently, the company has expanded their cooperation in this scene, having partnered with HOLOGATE and their Hygiene Standard, and it was announced that Cleanbox had also been selected by other manufacturers of LBE VR hardware for deployment with their systems.

But there are other new entrants offering UV-C. In China, manufacturer LEKE VR has released a simple box enclosure for VR headset cleaning (called the ‘ LEKE VR Sterilization Box ’), though information on its Western sales plans away from Alibaba are limited. Meanwhile in Europe, Netherlands-based The VR Room revealed that they have developed their own solution. Called the ‘ UV-C Smart Box ’, the solution has been specially configured to the unique needs of VR arcade operators, the manufacturers are receiving ISO certification for the ability to sell such a platform.

Another new entrant into this space is SaniBoXX . The Texas-based company had already developed a UV-C enclosure for the decontamination of racing helmets –favouring using a short wavelength UV-C UVGI light at 254nM. The company created their ‘ RS-12 ’, ‘ RS-10 ’, ‘ RS-4 ’ and ‘ RS-1 ’ cabinets for treating that number of helmets against the SARS-CoV virus base. These achieved international recognition, with over 100 units already in operation. The company has taken this proven system and scaled it to work for VR headsets – working with a well-known VR manufacturer, towards launching their new system in the coming weeks.

Just as this report was going to the wire, another new entrant to the UV-C lineup was added. The developer Uvisan made an appearance on the market for commercial entertainment deployment. The company is a new start-up, focused on the development and sale of their new portable electronic and accessories disinfection platform, using a UV-C lighting enclosure. The wheeled cart configuration offers a simple and robust means for facilities to disinfect numerous devices – which can also include head mounted displays and other VR and AR units (able to accommodate 100 phones, 50 tablets, or 30 convention VR headsets). The cart can also be used, during the disinfection process, to charge devices. Uvisan has links to the UK-based VR operator Immotion VR – who has been in hibernation since the lockdown of all entertainment venues. This new disinfection system offers a means to address a very real need. Along with these examples, several do-it-yourself projects have been crafted by VR arcade operators to address their own needs, hoping to pass muster, even without certification.

- Electronic Sporting Sector Sensation

It is not just the VR sector embracing the new UV-C sanitation technology. It was revealed that “eSports” specialist, E-Blue Gamming , has developed and launched the first eSports center designed to address the unique needs of the post COVID-19 marketplace. The first venue developed under the needs of the “New Normal”, includes special physical distancing measures, incorporating barriers between game stations, a brand new layout to avoid clustering and, in a major advancement, the spaces are patrolled by unique UV-C sanitization robots that are designed to clean empty spaces of the majority of pathogens. This brand new venue is opening in Phoenix Arizona, in the US. E-Blue has built over 1,000 eSport centers worldwide since entering the market in 2016, and sees their new coronavirus-compliant design to be addressing the needs of the emerging market.

While some struggled to find a positive position in the current landscape, other operations reflected the continued growth of the eSports investment. It was revealed that PlayBrain , a Japanese organization and hosting service promoting brands in the eSports sector, had raised $8m in a Series A round of investment. This round of fundraising was supported by previous investor BITKRAFT Esports Ventures . The move marks plans by the company to increase their presence in the sector, with greater investment in their eSport properties, building a bigger and stronger brand; and also looks towards establishing the commercial reach of their League of Legends Japan League. PlayBrain has direct relationships with leading game publishers such as Activision Blizzard , Electronic Arts , and Bandai Namco Entertainment , promoting their content in competitions. This is along with working with the leading streaming platforms and eSport gaming platforms such as Intel and Twitch . This is expected to be the opening salvo in an investment rally in eSports enabled start-ups.

The accuracy of this speculation was proven only a matter of days later, when it was announced that US-based eSports infrastructure and services company, Nerd Street Gamers (NSG) , had raised $100m in a Series B round of investment. The company has been on a meteoric growth cycle since it initially raised $12M in its Series A investment last year. The Series B was facilitated by support from previous investors, including the Comcast Spectacor owned T1 , along with venture capital firms – these included SeventySix Capita l and Elevate Capital . This considerable investment will go towards continuing to achieve, what the company announced in a statement, their “ rapid growth through 2020 and beyond ”. The importance of infrastructure in organizing, operating, and promoting eSports events has seen major corporations vying for dominance in the international scene. This move for dominance will see NSG plan to open some 80 eSports arenas, which will be part of 850 Five Below discount store chain (one of the pivotal investors of this round of investment), as well as opening another 20 new eSports centers – all in the next five years. This is expected to be one of many new crossover partnerships, as seen with Top Golf and their experimental eSports lounge concept.

The next and final part of this series of features under lockdown comes as more and more of the territories exit voluntary isolation, and the industry enters the new normal of our futures – next part coming soon.