Mixer, originally known as Beam, was an interactive game streaming service acquired by Microsoft. It aimed to rival Twitch and YouTube by offering unique features like low-latency streaming and viewer interactivity. Despite signing exclusive deals with top streamers, Mixer struggled to scale and was eventually shut down, transitioning its users to Facebook Gaming.
What was Mixer
Mixer, an interactive game streaming service, allowed viewers to play along with streamers, offering a unique, interactive experience. Its standout feature was crowdsourced controls, setting it apart from competitors. Notably, Mixer raised $270K in funding, was acquired by Microsoft, and later transitioned to Facebook Gaming.
Reasons behind Mixer's Failure
Lack of Scale and Viewership Mixer struggled to reach the scale needed to compete with major players like Twitch, YouTube, and Facebook Gaming. Despite recruiting exclusive streamers like Ninja and Shroud with big deals, Mixer couldn't attract a significant number of users. “We started pretty far behind, in terms of where Mixer’s monthly active viewers were compared to some of the big players out there,” says Phil Spencer.
Strategic Shift Towards xCloud Microsoft decided to focus on its xCloud game streaming service and saw a partnership with Facebook as a way to broaden its appeal. Mixer lacked the scale and viewership to support Microsoft's vision for xCloud. “When we think about xCloud and the opportunity to unlock gameplay for 2 billion players, we know it’s going be critically important that our services find large audiences and Facebook clearly gives us that opportunity,” says Spencer.
Financial and Operational Considerations Microsoft faced a decision between investing more money into Mixer without a guarantee of success, selling it off, or finding a strategic partnership. The decision was influenced by the need to find a solution that was best for the community and streamers. “It wasn’t as much about return on sell, it was about finding a partnership that was the best things for the community and streamers,” explains Spencer.
Impact on Investors and Market
Mixer's failure impacted its investors by rendering their $270K investment unfruitful, as the platform couldn't compete with Twitch and YouTube. The market saw a consolidation, with Facebook Gaming absorbing Mixer's user base, highlighting the challenges smaller platforms face against established giants in the live game streaming industry.
Lessons Learned from Mixer's Failure
Understand Market Dynamics: Assess the competitive landscape thoroughly before entering, ensuring your platform offers unique value that can attract and retain users.
Scalability is Crucial: Ensure your platform can scale effectively to meet user demands and compete with established giants.
Strategic Focus: Align your platform's goals with broader company objectives to avoid resource dilution and strategic misalignment.
Financial Prudence: Evaluate the financial viability of continued investment versus strategic partnerships to maximize returns and community benefits.
Community-Centric Decisions: Prioritize the needs and experiences of your user community when making strategic decisions to foster loyalty and growth.
Frequently Asked Questions about Mixer
What was Mixer?
Mixer was a streaming service owned by Microsoft, known for its low-latency and interactive features.
Why did Mixer fail?
Mixer failed due to its inability to scale and compete with larger platforms like Twitch and YouTube.
What happened to Mixer after it shut down?
After shutting down, Mixer transitioned its partners and streamers to Facebook Gaming.
Looking Ahead
As the landscape of the startup world continues to evolve, it's crucial for founders to learn from past failures and make informed decisions. If you're considering winding down your startup, Sunset can help you avoid penalties, reduce liabilities, and move on to your next venture efficiently.
