One year and one day after Google lost Twitch to Amazon, YouTube is taking gaming to the public. Launched today, users can head down Youtube’s gaming site to check out the new interface, see who’s streaming, or start a stream themselves. A slick interface, huge user base, and tons of content might have Twitch worried a bit.
YouTube calls YouTube Gaming the “go-to destination for anything and everything gaming.” It not only shows who is live streaming, but serves as a collection point for all gaming content on YouTube. YouTube Gaming automatically categorizes YouTube’s gaming content and sorts it by game and by the content of video.
The new dashboard makes streaming less of a scheduled event and more of a casual thing that streamers can do whenever they want. Streaming on YouTube Gaming is done on HTML5, and, unlike Twitch, streamers can enable a “DVR Mode” that buffers the last four hours of a stream and allows viewers to rewind.
YouTube Gaming will give Twitch the biggest competition in the live streaming space it has ever seen. Almost every Twitch streamer also uses YouTube for archival purposes and as an additional revenue stream, and now YouTube is a one-stop-shop for every kind of gaming video on the Web. It will be interesting to see how the battle of the game streaming service plays out.
Google’s YouTube is close to securing a $1 billion buyout of live streaming service Twitch, and has been chosen as the best suitor over many competing companies such as Microsoft.
Twitch is said to believe that Google can help the company become what it wants to be — the definitive platform for watching and streaming live video gaming. The company raised $20 million from investors in 2013 and is likely to turn a profit this year. But capital isn’t enough to allow Twitch to scale its technology and infrastructure to keep pace with its growth. It had plenty of offers from venture capitalists looking to give it more money, said the person, but what it needs is a partner that can help it handle massive amounts of live and user-generated video on a global scale.
Despite not being well known beyond gaming circles, Twitch already pushes more traffic during its peak hours than titans like Facebook and Amazon. “To be quite honest, we can’t keep up with the growth,” Twitch marketing VP Matt DiPietro has stated. Microsoft and others have made serious approaches to Twitch, but YouTube was deemed the better fit. It’s unlikely that the gamer-friendly Twitch would have wanted any part of a deal that would tie the service to Xbox, as it’s embedded in Sony’s rival PlayStation console as well.
YouTube has been interested in testing the game-streaming waters by introducing an API at last year’s Game Developers Conference, but the effort never got much traction in the community — it only opened live streaming capability to all in December. Twitch, meanwhile, has huge mindshare among the video game audience, as evidenced by its role as the streaming platform for all major e-sports tournaments, giving it command over a lucrative advertising demographic. The proposed deal can be compared to Facebook’s $1 billion acquisition of Instagram back in 2012, where an established giant snapped up a fast-growing startup it saw as a potential competitive threat.