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Tackling latency in next-gen gaming

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Mathieu Duperré, CEO at Edgegap

Anyone that’s played a video game online has almost certainly experienced some kind of lag and connectivity issues. Despite huge infrastructure advances in the last few decades, latency remains a constant thorn in the side of gamers and detracts from the real-time experience that’s expected today.

Delivering a consistent experience to gamers playing on different devices with varying connection speeds – many of which are separated by thousands of miles – is a complex challenge. Massively popular online games like Roblox and Fortnite are just two of the many games which have benefited from years of investment into infrastructure in order to support millions of concurrent players. As the below chart from SuperJoost shows, multiplayer and online gaming is becoming the preferred way to play games amongst the most active gaming demographic, with all the technical challenges that this creates.

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Games which can be played seamlessly across mobile, PC and console (so-called cross-play games) are also pushing the limits of what current internet infrastructure can deliver. Add in a new generation of streaming cloud gaming services like Stadia, Blacknut Games and Amazon’s Luna – plus Microsoft’s Game Pass and Sony’s revamped PlayStation Plus service, and you can see how the promise of console-quality performance over a broadband connection risks overloading networks that were never designed for this level of gaming.

So how can game companies, telcos and ISPs deliver on the performance promises being made to gamers? That’s where edge computing comes in.

 

Lag, latency and the Edge

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When talking about latency it’s important to make it clear exactly what we mean. Latency refers to the amount of time it takes for game data to travel from one point to another. From the gamer’s perspective, it’s the delay between their command and seeing it happen in-game. How much latency a gamer experiences is dependent on the physical distance the data must cross through the multiple networks, routers and cables before it reaches its destination.

To use an extreme example, NASA’s Voyager 1 has made it about 14.5 billion miles from our planet so far, and it takes about 19 hours for its radio waves to reach us. Here on Earth, your latency is (hopefully) measured in milliseconds rather than hours; and gamers need around 30ms for the most optimal performance. Anywhere above 100ms can lead to noticeable lag and a frustrating experience.

This is where Edge computing comes in. As the name implies, Edge computing brings computation and data storage closer to the sources of data, placing it on the edge of the network where the performance gain is the greatest. As you’d expect, reducing unnecessary travel drastically speeds up the process providing an almost lag-free experience.

 

More players equals more chance for latency to be a problem

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In the early days of gaming, local, couch play was part and parcel of the gaming experience. Today, a game where hundreds or even thousands of players are in the same session is nothing out of the ordinary, and there are Battle Royale games now, a whole genre of games where a hundred or more players are whittled down to a single winner.

The sheer scale of some online games dwarfs many of the most popular streaming services. Whilst Netflix remains the most successful streaming video site with 222 million subscribers, kids game Roblox has 230 million active accounts and Fortnite has over 350 million registered players. So if we assume these games reflect a growing trend, the demand on server networks is only going to increase, and gaming companies will have to look for more innovative solutions to continue meeting demand.

 

Cross-Platform

The ability for gamers on different devices and platforms to play and compete together is becoming an increasingly common feature of AAA multiplayer games like Apex Legends, Fornite and Call of Duty. EA Sports recently confirmed that FIFA 23 will be joining other heavy hitters in exploring cross-platform play. Considering the large amount of games on the market, and the various game modes for each game, studios are looking at crossplay to increase the amount of players who can play together. One of the main driver is to lower matchmaking time and prevent players from having to wait hours before opponents are ready to play with them.

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From a latency perspective, different infrastructure across platforms means lag and downtime are far more likely. When it comes to cross-play, studios can’t use P2P (peer-to-peer) since console vendors don’t support direct communication (i.e. an Xbox can’t communicate directly with a playstation). On top of that, P2P may be limited by player’s home network (restrictive natting for example). That’s why studios typically use relays in a handful of centralised locations. Relays are seen as cheaper than authoritative server. They although have large flaws like making it harder for studios to prevent cheating, which is becoming more and more important with Web3 & NFT. This causes  higherlatency since traffic needs to travel longer distances between players. For example, when Apex Legends went cross-platform, players were inundated with frame rate drops, lags and glitches.

Edge computing allows studios to deploy cross-play games as close as possible to their players, significantly reducing latency. Which can negate some of the delay issues around differing platforms.

 

VR and the Metaverse

Despite hitting shelves in 2016, VR is only now slowly making its way into mainstream gaming. Advances in technology have gradually improved the user experience, while also bringing the price of hardware down and closer to the mass market – not to mention the metaverse bringing renewed attention to the tech. But latency issues still present a serious hurdle to wider adoption unless it’s addressed.

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Latency impacts the player experience far more in VR than in traditional gaming as it completely disrupts the intended immersive experience. A 2020 research paper found latency of over 30-35ms in VR, had a significant impact on players’ enjoyment and immersion, which was far lower than acceptable margins on a controller.  But when it comes to the metaverse, achieving this might not be enough. Latency between headset and player has to be sub 5ms to prevent motion sickness.

In a recent blog, Meta’s VP, Dan Rabinovitsj, explained that cloud-based video games require a latency of around 75–150ms, while some AAA video games with high graphical demand require sub 35ms. Comparatively, Rabinovitsj suggests metaverse applications would need to reduce latency to low double or even single digits.

For better or worse, we’ve seen glimpses of what the metaverse has to offer already. Decentraland’s metaverse fashion week gave major brands like Dolce & Gabbana an opportunity to showcase virtual versions of their products. But attending journalists reported that the event was fraught with lag and glitches.

Gamers are a fickle bunch, so early adopters will simply move back to other games and platforms if they have poor initial experiences. Google’s Stadia promised to revolutionise gaming, but its fate was sealed at launch as the platform simply couldn’t compete with its competitors’ latency. Today, Google has ‘deprioritised’ the platform in favour of other projects.

If the metaverse goes to plan, it should encompass a lot more than traditional gaming experiences. But if it’s going to live up to players’ lofty expectations, akin to Ready Player One, more thought needs to be given to scalable and optimised infrastructure.

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Unlocking next-gen gaming

The pace at which modern gaming is evolving is astounding, making the components discussed here work lag-free and as players expect will be a huge undertaking, and even more so when developers attempt to bring them all together in the metaverse.

The issue of latency may be less headline-grabbing than virtual fashion shows, NFTs and Mark Zuckerberg’s slightly unsettling promotional video, but the ability to seamlessly stitch all of these elements together will be critical in making the metaverse live up to expectations, and therefore, to its success.

 

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Gambling in the USA

Kambi Group plc extends Mohegan partnership with on-property sports betting agreement in Pennsylvania

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Kambi Group plc (“Kambi”), the world’s trusted sports betting partner, has agreed a long-term on-property sportsbook partnership with Mohegan to provide its award-winning sportsbook at two retail locations in the state of Pennsylvania.

The partnership will see Mohegan utilise Kambi’s cutting-edge retail sportsbook offering across more than 20 kiosks in sportsbook locations at Mohegan Pennsylvania and Mohegan Pennsylvania at Lehigh Valley Race and Sportsbook.

The deal further strengthens Kambi’s relationship with Mohegan, which already utilises Kambi’s suite of sports betting products at ilani in Washington, as well as online and on-property in the Canadian province of Ontario at Fallsview Casino Resort and Casino Niagara.

Kristian Nylén, Kambi CEO and Co-founder, said: “With several successful partnerships with Mohegan already in place, we are pleased to agree this new partnership as we continue to build on our strong relationship.

“This latest deal further reinforces Kambi’s position as the sportsbook provider of choice for tribes across North America, and we look forward to our ongoing collaboration with Mohegan.”

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Tony Carlucci, President & GM of Mohegan Pennsylvania, said: “Mohegan Pennsylvania is excited to continue utilising the same Kambi technology platform that existed under our Kindred partnership, which will help to create a seamless process as the Sportsbook at Mohegan Pennsylvania fully rebrands later this Spring.”

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Blockchain

JuicyBet Launches Its Innovative GambleFi Platform

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 JuicyBet, a Web3 startup, announced the launch of its GambleFi platform. This platform combines finance technology and gambling via blockchain to create unique opportunities and experiences for users. The company strives to revolutionize the principles of the online betting industry and the interaction between platforms and users in this market.

What is GambleFi?

GambleFi uses blockchain technology to ensure the fairness and transparency of games and betting outcomes and for players to get their share of the platform’s earnings and participate in its governance and day-to-day by holding its tokens.

How JuicyBet works

JuicyBet fully utilizes blockchain technology to establish a new ecosystem that has never been seen in the gambling industry. It is centered around user participation and transparency while providing gambling thrills and quality entertainment.

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All game records on the platform are kept in a public blockchain, while a set of smart contracts automates gaming outcomes and payouts and provides for the platform governance via the DAO model. This reduces fraud risks and operational costs, making JuicyBet a more efficient platform.

However, the platform’s main feature is the unprecedented level of user engagement via the platform’s native tokens.

  • First, the tokens provide access to betting.
  • Second, token holders get their share of the platform’s profit.
  • Third, token holders can vote on key decisions on the platform’s development in JuicyBet DAO.
  • And finally, DAO participants can also perform the role of oracles for bets and earn rewards.

In other words, JuicyBet doesn’t try to be just another gambling platform. It establishes a new ecosystem where users are in control of the platform and bets and are the beneficiaries of the platform.

In addition, JuicyBet offers additional earning opportunities, such as Double Farming and staking for token holders.

JuicyBet has already been noticed by users and investors – the platform’s 3-month turnover has exceeded $1,5 million, according to on-chain data available via Dune, and multiple centralized exchanges and launchpads have listed it.

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Rivalry Announces 2023 Annual Letter to Shareholders and Filing of 2023 Annual Financial Statements

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Rivalry Corp. (the “Company” or “Rivalry”) (TSXV: RVLY) (OTCQX: RVLCF) (FSE: 9VK), the leading sportsbook and iGaming operator for Gen Z, is pleased to announce its 2023 annual letter to shareholders and the filing of its financial results for the three (3) and 12-month period ended December 31, 2023. All dollar figures are quoted in Canadian dollars.

2023 Annual Letter to Shareholders

To our Shareholders,

This time last year I spoke about Rivalry’s evolution from a market leader in esports to a diversified Company setting the standard for Gen Z betting entertainment broadly.

Today, we have a business with revenue distribution across casino, sports, and esports betting, growing market share in new geographies, with increased velocity in core regions, and the strongest customer KPIs in Rivalry’s history.

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In 2023, Rivalry recorded $423.2 million in betting handle1, up 82% from the previous year. Similarly, gross gaming revenue2 and net revenue both saw 34% and 66% respective increases, while the introduction of higher margin products released in H2 such as Same Game Combos and Quick Combos are continuing to improve overall sportsbook hold and guide Rivalry closer to profitability.

Our deepened product suite now includes fantasy, additional sports coverage, and new proprietary casino games. All of which are uniquely driving growth among a targeted customer segment and widening our opportunity set in 2024 and beyond – from a 60% increase in traditional sports betting to a burgeoning B2B game vertical. The potential for how far our brand can go is just beginning to unfold.

The year ahead is rife with new, innovative product releases arriving in Q2 and continuing throughout 2024. We are doubling down on core growth opportunities in sports that resonate with our audience, such as basketball and soccer. Further, we are building on a successful casino segment which already represents 50% of our business, enhancing variety, depth, and accessibility, as well as developing new original games which blur the lines between betting and entertainment. We are in the process of additional geographic expansion, and pursuing new licenses to broaden our total addressable market, positioning Rivalry to own the Gen Z gambling opportunity globally.

While Rivalry’s operations have expanded into new high-growth verticals, our north star has remained the same: to define the future of online gambling for a generation born on the internet.

Online gambling in 2024 is radically different than it was just six years ago when Rivalry launched. In that time we’ve seen gaming and internet culture reshape how consumers engage with technology. That shift is broadening the definition of gambling, where product design is influenced by video games, or it exists fully embedded within social apps like Telegram, where content creators are the new affiliates, and much more.

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Over the same period, the rise of cryptocurrency and blockchain technology has introduced a new level of speed, access, and security to web-based consumer experiences. Industry estimates now put crypto wagers at up to one quarter of global betting handle3, with 30% year-over-year growth in 20244, and showing no signs of slowing down.

The development of this ecosystem has commercially unlocked online gambling unlike anything since its first transition from land to online many years ago. It has brought in a new global audience, and enriched the customer experience from end-to-end.

Alongside the growth of this technology has emerged new methods of gambling, taking wallet share from more traditional forms at an accelerated rate. The shift in consumer behavior and the signal from our users is clear – interactive, volatile, and crypto-infused product experiences will set the precedent for how the next generation gambles online.

Rivalry, with a brand steeped in internet culture and living at the intersection of this digital economic renaissance, is well-positioned to access this growth opportunity. There is high overlap between Gen Z, gamers, gamblers, and a fast-growing audience of over 420 million crypto users worldwide5 organically aligned with our audience and brand. And we believe that more than half of this audience globally is already wagering with crypto.

It will be Rivalry’s ability to understand, implement, and adapt to this shift more rapidly than our peers that we expect to create first-mover advantages for us. It is for that reason that our vision is now bolder than ever for what’s possible in the online gambling category.

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Soon, we will reveal plans for a crypto-enabled product set to enhance alignment between Rivalry and its users, increase network effects, and generally deliver a consumer experience that lives on the internet of 2024.

To that effect, the success of our first-party games and their ability to acquire and engage a captive audience of Gen Z bettors online has validated our original game development strategy amongst industry peers. This has unlocked a new commercial opportunity for Rivalry to license its IP, opening up another line of revenue for the business that has great potential for global scale.

The year ahead is poised to be one of our most ground-breaking, with a myriad of innovative product releases across all of Rivalry’s verticals, adding more dimension to our business, operations, and addressable audience, and building on our competitive moat as the market leader in Gen Z betting entertainment.

We look forward to sharing more details about these upcoming initiatives, the opportunities they will unlock for our Company, and delivering on our promise to create long-term shareholder value and reach profitability. Thank you all for your continued support.

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