CD Projekt RED Struck By Blackmail Attempt

It looks like the video game industry isn’t immune from the kind of ransomware attacks that have been hitting…well, everywhere, recently, as CD Projekt Red, the Polish developer behind the Witcher series, reports being subject to a blackmail attempt by thieves who have stolen some early development materials for its’ upcoming game, Cyberpunk 77. The blackmailers have reportedly threatened to release the materials online if their demands aren’t met.

What’s been great to see is the way the company has responded to to the situation. Taking a page from the Jaromir Jagr handbook, they’ve basically told the blackmailers to go ahead and release everything. They’ve also put out a public statement summarizing the situation, and noting that the materials are old and don’t represent the current state of the game.

All in all, this was a fantastic way to handle this by the company. In the end, I wouldn’t be surprised if the positive PR, and the extra exposure ¬†for Cyberpunk 77 that the company gets as a result of this incident (ironically enough, this story will probably be the reason many people hear about the game for the first time) will outweigh any damage done if the materials are released.

Full statement from CD Projekt Red below:

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Would You Pay $10,000,000 for a League of Legends Team?

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Riot Games has recently¬†announced some major changes to the way it’s North America League of Legends Championship Series functions, in an attempt to move the NALCS into a more structured format that more closely mirrors the way major traditional sports leagues like the NFL or NBA currently operate.

Starting 2018, teams will no longer have to qualify for the NALCS through competing in a series of lower-level tournaments, nor will they face the immediate prospect of relegation if they don’t do well. Instead, ten teams will be more-or-less guaranteed spots in the league indefinitely. All the teams will share in the league’s revenues, with performance incentives for teams that place better. There’s even talk of a player’s union, as well as a minimum player salary of $75,000.

The most noteworthy aspect of this, however, is the price that Riot is reportedly asking for a franchise. Reports are that a franchise in the new-and-improved NALCS will cost a cool $10 million, around 5-10 times what LoL teams are currently reported to be going for. At this sky-high price, it’s more than likely that the majority of the teams currently in the NALCS will not be able to come up with that kind of money. Blizzard, which announced its own plans for a similar Overwatch league a few months ago, and is reportedly asking a similarly high figure $20 million per franchise, has run into some problems recently as multiple existing e-sports organisations balked at putting together teams for the league due in large part due to the high cost of entry.

Maybe the slack will be picked up by new outside investors or traditional sports franchises, who are willing to put up that kind of money in order to get in on the ground floor of the e-Sports business. Indeed, that seems to be the direction Blizzard has been heading with its Overwatch league, as the company reportedly focuses on attracting these investors at the expense of teams in the existing Overwatch e-sports ecosystem. However, unless Riot can show these investors a credible plan for how they are going to make their money back, it remains to be seen whether enough of them will come through to support a full roster of teams for the NACLS.

It may be that Riot is putting the cart before the horse here. If all goes well I have no doubt that 10 years from now a NALCS team (or whatever the NALCS equivalent is then) will be worth $10 million or more. However at this point it’s hard to believe that the economics of the (e-)sport justify paying this much for a franchise. By asking for this kind of buy-in fee, Riot risks pricing out and alienating the teams and players that have built LoL as an e-Sport from the ground up in the first place. Whether this is going to have a positive effect on LoL as an e-sport in the long term is an open question.

Riot is set to announce the 10-team roster for its league in November, 2017. It will be interesting to see whether Riot manages to put together a 10-team roster at the reported $10 million buy-in fee by that deadline.