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  • Writer's pictureSportzian

The Rise of E-Sports!

Updated: Jul 26, 2020

During childhood, each one of us was frowned upon by our parents for spending a lot of time playing video games. The reason they gave was “video games will not help you pay your bills !” Well, its time to correct them! Why do you ask? Then Read on!

Electronic Sports or E-Sports have become a huge phenomenon around the world. In 2019 they have generated revenue of about 1 billion USD, yup you read it right. And according to Newzoo Analytics Platform, it is going to hit 1.8 billion USD by 2023! Esports has been new found love to the investor community, in 2017 investments in esports was only 490 million USD and come 2018 the investments have swelled to 4.5 billion USD! That is a whopping 837% increase in investments!

And you ask how will these e sporting games earn money? The answer is about 57% revenue comes from sponsorship deals and them YOY growth of about 17.2%, Media rights, merchandise and tickets, publisher fees, Digital and Streaming constitutes the remaining 43%.

You might think who is going to watch these all! Then hold tight, by 2023 the total audience might increase to 643 million! That is about 8.3% of the current world population. The Asia Pacific has been a key region for esports. According to Newzoo, this region alone contributed about 57% of audience revenue.

The next big thing in e-sports leagues will be mobile gaming. With the advent of more powerful mobiles and games at par quality with the pc games, it is expected that the mobile gaming market will contribute to about 45% of total revenue!

What is more interesting about this segment is giants like Google and Facebook have entered this arena with their online streaming services. This will help esports, in general, to reach a wider audience and also in countries where its presence has been minimal or non-existent.

And at uncertain times like this when you are mostly prohibited to go out and have some action, esports have come as a relief. Big sporting organisations like F1 are encouraging their drivers to participate in the e-sport version of the game, helping to keep the fans engaged! So, what are you waiting for? Get your Xbox /play station/ Nintendo out and start gaming and the next time when somebody says gaming is a waste of time show them this article!

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