As a gust of digital revolution sweeps across the globe, Esports has rapidly emerged from the shadowy corridors of gaming communities to bask in the limelight of mainstream entertainment. Computer and video-game competitions have not only garnered intense worldwide interest but have also cracked open a wealth of new opportunities in the realm of international sports, commanding recognition and churning mammoth revenue streams.
The inception of Esports traces back to the 1970s when the earliest known video game competition was held at Stanford University for the game Spacewar. From its humble beginnings, Esports has evolved into a behemoth, offering thrilling and vivid tournaments that captivate millions of viewers worldwide. The staggering figure of over 495 million Esports enthusiasts in 2020 alone, chronicled by Newzoo’s Global Esports Market Report, is a testament to its burgeoning popularity.
The Esports industry’s journey towards mainstream acceptance was propelled further when reputable international sports bodies began acknowledging its potential. In 2017, the Asian Indoor Games and Martial Arts Games (AIMAG) included Esports as a demonstration sport. Two years later in 2019, the Southeast Asian Games took a step further by considering Esports an official medal event. Additionally, whispers about Esports becoming part of the Olympics aren’t far off with the International Olympic Committee openly expressing its interest in this arena.
Esports meteoric rise is not only reflected in its soaring popularity but also evident in its swelling revenue figures. According to reports from SuperData, a Nielsen company, the global Esports market crossed a historic landmark by generating an unprecedented income of $1.1 billion in 2020, a 15% hike from the previous year, despite the challenges posed by the COVID-19 pandemic. This windfall is steered by the regions of North America, China, and Western Europe, constituting approximately 78% of the total revenue.
The revenue growth isn’t only confined to events and tournaments. Esports-related businesses, including broadcasting rights, merchandise, and in-game purchases, have coalesced into a lucrative industry. Sponsorship and advertising deals, in particular, are continuing to skyrocket. Noteworthy is the landmark multi-year sponsorship deal signed by League of Legends with MasterCard, the first global partnership scope for the game.
Interestingly, the realm of Esports isn’t confined merely to gamers and gaming communities. Universities, for instance, have identified the potential of Esports and are incorporating it into their curriculum. Some prominent institutions like the University of California, Irvine, and Ohio State University are offering Esports scholarships. Missouri’s Columbia College even established the first varsity Esports program in the U.S and offered scholarship programs to its gamers.
Esports’ emergence on the mainstream horizon has likewise attracted high profile investments. It has been reported that celebrities such as Michael Jordan, Drake, and Ashton Kutcher have ventured into the Esports industry. The traditional sports world is not far behind, with entities like the Philadelphia 76ers and Paris Saint-Germain launching their own Esports teams.
Ultimately, as Esports garners worldwide acceptance and recognition, its influence extends beyond the traditional boundaries of sports. It’s demonstrating the capacity to generate substantial revenue, trigger technological innovation, and transform the global entertainment industry. As we gaze towards the future, the meteoric rise of Esports suggests an intriguing, thrilling, and prosperous journey in the realm of digital sports, foretelling a new era where the line between physical and digital contests grows increasingly blurred.
Sources:
1. Newzoo’s Global Esports Market Report 2020
2. The Asian Indoor Games and Martial Art Games
3. SuperData, a Nielsen company, Global Esports Market Report
4. League of Legends, MasterCard Sponsorship Deal
5. University of California, Irvine, Esports Program
6. Missouri’s Columbia College Varsity Esports Program.
