Denice R. Preston
While the complicated esports market could challenge investors, it’s rapidly growing and already has accumulated an enormous global audience.
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I am convinced esports will compete with the most significant traditional sports leagues for future opportunities. And between ticket sales, marketing licensing, sponsorships, and merchandise, There are enormous opportunities for growth in this emerging business -Steve Borenstein, the Activision Blizzard Esports Division and former Chief Executive Officer of ESPN and NFL Network.
Esports is a growing worldwide industry where skilled gamers compete. Similar to how traditional sports are characterized by competitions like basketball, baseball, and football, the term “esports” also encompasses contests in various video games. Contrary to popular belief, it isn’t just an event within the basements of jobless twentysomethings. The industry is real, growing worldwide, and also a viable investment. In reality, more than 338 million people are watching Esports worldwide, both on the internet and in person. More viewers watched the world finals 2016 of the most popular esports game, League of Legends (43 million viewers), than the NBA Finals Game 7 that year (31 million viewers). With its splintered landscape and online gaming platform, the esports market is an excellent source of revenue opportunities.
The article below will provide an overview of the business and information for investing in it. The report will discuss the various players involved in esports, the demographics and size of the players, market dynamics, and the best way to invest in the field. I will share analyses and data from third-party sources and my knowledge and experience following conversations with people, gaining knowledge about the industry, and starting an esports-related company ( Konvoy).
What Is Esports?
Esports, a short form of “electronic sports,” transforms online gaming into an actual spectator game. It’s like watching an event in a professional sport. Still, instead of being able to watch a real possibility, viewers are watching video gamers compete against one another in a virtual setting. If you’re unable to comprehend why someone would want to watch someone playing video games, take a look at the pleasure it’s for you to see Lebron James and Steph Curry compete in basketball. Traditional sports fans are enthralled by watching elite athletes compete at the top of their game. The same can be said of people who see the best video athletes take on.
This market includes traditional games associated with sports, such as NBA2K and FIFA, and more specifically, games like League of Legends, Counter-Strike, and Dota. We’ll talk about them later. Individuals can stream themselves to earn money or join more prominent groups to compete for substantial cash prizes. The players can connect with their supporters in various ways, including live streaming, social media, and even in person at tournaments. On the other hand, fans can be able to observe and follow their teams in games, both regional and international. Various technology-related platforms such as events, services analytics platforms, and significant investment capital are part of the ecosystem, which is expanding.
Esports is also distinctive in that a player’s performance is not dependent on their height, strength, or thinness. While significant information links a person’s health to better performance of players, it is irrelevant if the player is 5’2 inches or 6’8 inches tall. They can perform at the top levels in League of Legends, CS: GO, Dota 2, or any other game. Esports have the potential to equalize the playing field for aspects like gender, culture, and geographical location. Participation is more democratized and is a significant factor in esports’ appeal and the creation of worldwide engaged fans.
Furthermore, whereas physical and spatial limitations characterize traditional sports, esports are rapid-paced and adaptable due to their dependence on digital technology. For example, it would be impossible to create a basketball game that is a 100-versus-100 sport because a court would not accommodate 200 players. However, new games that can be infinitely scaled in variations, dynamics, and players could be developed in esports. A new game or an update to an established game franchise could have enormous consequences. For instance, when the 2013 version of Call of Duty: Ghosts was launched, players and gamers were required to transition between the previous version and 2013 to learn 12 new maps for multiplayer. When updates are made available to games already in play, they create a huge learning curve since game dynamics and strategies can change drastically.
Which Esports Games Are Most Popular?
While the actual ranking of the most watched Esports titles varies slightly from month to month, the top ten games on the streaming website Twitch remain constant (Table 1.). At present, League of Legends remains the most-watched sport worldwide. It’s also worth mentioning that, for those not experienced with esports, the most watched game titles are in no way traditional video games based on sports like Madden and FIFA. Instead, the most well-known esports categories include online multiplayer battle arenas (where players control only one player in the team must destroy the main building of the opponent) and real-time strategy (where players build an army to establish dominance over the map) or shooting games in the first person (where players are involved in a battle on the map).
Esports Landscape: Involved Parties
The world of esports is complex and can be challenging to traverse. The following section provides a list of the leading players in the field.
PLAYERS
Being a top player in esports isn’t an easy task. To climb the ranks, the players must specialize in a particular game and improve their abilities through intensive and competitive play. Some train for 14 hours daily to develop speedy reflexes and multi-tasking skills. The most talented players can choose between two paths to pursue their esports career:
Streaming gamers who broadcast themselves when playing video games are known”streamers. “streamers.” It is usually done during informal play. Although streamers can make extremely lucrative, many streamers need to decide whether to earn a living from streaming or make it a profession and run the risk of earning less cash. However that not all streamers possess the skills to be professional players. Instead, a few are simply ” streaming personalities” that people find interesting to follow, give to, and even subscribe to. These can result in amazing revenue streams for the most profitable. For instance, the most viewed YouTube channel on the planet is owned by the video game streaming channel known as “PewDiePie.” The YouTuber has such a diverse style that people often consider him “highly delightful or incredibly annoying,” and he currently has 57 million YouTube users. In 2015 his earnings have been reported to have made $7.4 million.
Professionally playing: The few who reach the level of professional play in tournaments around the globe against top teams. In the process, they build fans for themselves and the organizations and groups they represent (analogous to Lebron James, who has a loyal following regardless of whether he’s playing for the Heat or the Cavaliers). Pro-level athletes who are successful can make six-figure salaries as well as millions. Pro-level players usually begin their professional careers at the age of 16 or 17 and typically quit around the age of 24. There are variations between different publishers and games; however, professionals in esports generally begin and finish their careers earlier than the typical professional athlete. Professionals who have retired from esports might choose to stream themselves, coach teams of esports or start their group or work for publishers or end their involvement in Esports.
