we have been seriously talking about convergence of TV and games for more than 15 years now and while we always envisioned interactive movies what happened was exactly the opposite: people watching non-interactive streams of other people playing. Similar to watching sports on TV in a sense.
I think we* overestimated the desire for interactivity (after a long day being a mindless couch potato might be favorable) but most importantly we underestimated the impact of belonging to the same culture and sharing our accomplishments (which is incredibly like talking about sports with your buddies.)
In a sense Amazon just bought ESPN for nerds and there’s nothing wrong with that. (UPDATE: Seems I’m not the only one that reached this conclusion: ‘Twitch: Has Amazon Acquired the Next ESPN?‘)
It's awesome that Twitch, YC's biggest exit to date, is a result of one of its most laughed-at investments(justintv).—
Zaid Farooqui (@zaid) August 25, 2014