After Microsoft’s growth fails to meet the company’s expectations, it will shut down its video game streaming platform Mixer. The company said on Monday that it will work with Facebook (FB) to transition the Mixer streaming community to Facebook Gaming.
The deal brings together two big names in the game world, which may challenge the industry leader Amazon (AMZN) Twitch.
Mixer said in Monday’s blog: “The success of partners and streaming on Mixer depends on whether we can expand its platform as quickly and widely as possible.” “It’s clear that Microsoft and Xbox now want to provide gamers with a vision and Experience cannot scale our real-time streaming community, so we decided to close Mixer and help the community transition to a new platform.”
The two companies declined to disclose the value of the transaction. Facebook spokesman Drew Symonds pointed out that this is a partnership, “not a merger or acquisition.” The spokesperson added that Facebook Gaming will own the rights to the Mixer trademark and related domain names, but Microsoft will retain intellectual property rights to the Mixer technology.
Matt Salsamendi, the co-founder of Mixer who left the company last year, told CNN Business last week that he would not receive any revenue from the transaction.
Since being acquired by Microsoft in 2016, Mixer, once known as Beam, has received a lot of attention. But last year, when Fortnite star Ninja jumped from Twitch to play exclusively on Mixer, the platform caught people’s attention.
Microsoft also benefits from its extensive influence in the gaming ecosystem, including Xbox consoles, game developers, and cloud streaming. Despite this, Twitch and other competitor platforms, such as Google YouTube still show a huge competitive advantage.
According to estimates by Sensor Tower, a mobile application research company, since the beginning of this year, first-time users on the App Store and Google Play have downloaded Mixer about 3.4 million times, down 23% from the same period last year.
Microsoft said the deal is part of a greater effort by Xbox and Facebook and aims to bring “new experiences and opportunities” to Facebook Gaming’s more than 700 million users each month.
The company said that starting July 22, all Mixer websites and applications will redirect users to Facebook Gaming. It added that mixer partners-mixers that can monetize their content and enjoy privileges such as platform priority support-will also get the status of a Facebook game partner, and the new platform will “respect and match all existing partners Agreement, as closely as possible.”
However, according to Facebook’s Symonds, whether a mixing partner will eventually transition to Facebook games is “completely optional”. This makes it unclear whether the platform can benefit from Mixer’s well-known partners.
Symonds said: “Like all Mixer partners, Ninja and King Gothalion, Shroud and Ewok are welcome to join Facebook games.” “We want to provide Mixer streaming with the option to continue streaming on Facebook Gaming. Whether they choose to stream to Wherever, the world should have their game content.”
— Gothalion (@Gothalion) June 22, 2020
King Gothalion said on Twitter on Monday that he plans to join the Facebook game. Ninjas appear more on the fence, he said: “I have some decisions to make, and I will consider all of you when making decisions.”
Ninja representatives did not immediately request comments on whether to switch to Facebook Gaming’s streaming media.
Doron Nir, CEO of StreamElements, said there is still great potential for combining the Mixer community with Facebook’s ability to expand the platform.
“According to Facebook’s current trajectory, from March to May, the brand’s viewing time has increased by more than 100%, and this announcement will only add more momentum to their market share while providing the streaming community with A better opportunity,” Nir said.