One of the areas the licensing community is watching as a potential growth category is eGaming. The global marketplace is rife with a wide variety of game platforms, leagues, teams (many of which compete in several different games) and business models. The merchandise licensing aspect of the business is still very much in the developmental stage.

For its part, Activision Blizzard Entertainment, which debuted its Overwatch League earlier this year through affiliate Major League Gaming (MLG), is moving its merchandise business into a second phase. It will launch an outbound licensing program with the start of its second season in January, expanding what had been a self-sourced, mostly apparel-based assortments that focused on its teams to include categories such as gaming peripherals (keyboards, mice), collectibles and publishing, says the company’s Tim Kilpin.

Activision Blizzard designed and sourced the first season’s team- and player-related hoodies, t-shirts, and caps that are being sold inside at Blizzard Arena in Burbank, where all matches are played. In the first season, which ends with the finals in August, the top-selling items have been name and number jerseys tied to popular players, says Kilpin.

“We think apparel is always going to be important because we have great assets, but we want to expand” and the way to accomplish that is to shift product development to licensees, says Kilpin. “We wanted to move quickly at first and we didn’t want to miss a day of the first season so that is why we kept it inside Activision.”

Among categories being added, gaming peripherals will be an important area. And while much of the initial licensed merchandise will likely be keyed to the teams, there has been a growing interest in individual players, says Kilpin. Activision also is weighing a merchandise program for MLG’s Call of Duty World League, which launched in 2016 and has yet to sell related products, Kilpin said.

Among issues being sorted out is where eGaming goods will be sold, and how soon retailers will determine that it’s time for them to take a position in the business. “Retailers are eager to figure out how to play in this space, but I don’t know that we have a hard and fast plan in place yet,” says Kilpin. “I think we all have some more to learn in how it is going to work locally and how fans are engaging in that across the league. And where the right places are to go from a retail perspective hasn’t been completely figured out yet.”

Contact:

Activision Blizzard Entertainment, Tim Kilpin, Pres.-CEO Consumer Products, tim.kilpin@activision.com