This is very true. If the quality is on par or even close to twitch. I can see it taking a big chunk of the audience and/or members. There is a lot of gaming channels already on youtube. If they decided to get into streaming that can capture all the audience they already have and maybe more.
I see your point. What I'm really hoping for is an improvement of the service. With competition we might begin to see more updates and features. Even if only one survives, it should leave the other stronger.
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