Esports, a portmanteau of "electronic sports," has emerged as a global phenomenon, transforming the realm of video gaming into a full-fledged spectator sport. What was once a casual pastime has evolved into an organized, professional sport, garnering millions of fans worldwide and creating an industry worth billions of dollars. Its meteoric rise has been fueled by advancements in technology, internet connectivity, and the ever-growing interest of younger demographics in video gaming. In this comprehensive guide, we delve into the world of esports, exploring its origins, its global appeal, its structure, and the opportunities it presents for investors and enthusiasts alike.
What are Esports?
Esports refer to competitive, organized video gaming. These games can range from multiplayer online battle arenas (MOBAs) like League of Legends and Dota 2, first-person shooters like Counter-Strike and Overwatch, to virtual adaptations of physical sports like FIFA and NBA2K. The esports genre is vast and varied, with games that cater to a wide spectrum of tastes and preferences.
Just as traditional sports have competitions in football, basketball, or tennis, esports encompasses competitions across an array of video games. Competitors, known as gamers or esports athletes, play against each other, vying for the top spots in their chosen games. They are watched and followed by millions of fans across the globe, who tune in on TV, online, or even attend live events.
History and Evolution of Esports
The birth of esports can be traced back to the 1990s when gaming transitioned from a casual hobby to an organized, competitive activity. However, it wasn't until the dawn of the 21st century that competitive gaming started to gain significant attention and evolve into what we now know as esports.
South Korea is often recognized as the cradle of competitive gaming. Faced with a severe financial crisis in the early 2000s, the South Korean government focused on developing their internet and telecommunications infrastructure. This led to the emergence of social spaces called PC bangs, which functioned as gaming clubs where enthusiasts would gather, compete, and bond over a shared love for video gaming. These clubs soon began hosting formal competitions, marking the beginning of the esports phenomenon.
The Rise and Global Impact of Esports
Over the years, esports have witnessed exponential growth, both in terms of participation and viewership. According to a report by Newzoo, approximately 380 million people worldwide watched esports in 2017, including 165 million esports enthusiasts. This enormous popularity has made esports a lucrative avenue for corporate sponsorships.
Major tournaments often attract audiences that rival traditional professional sports events. For instance, the 2017 League of Legends World Championship drew more than 80 million viewers, surpassing even the viewership of some traditional sports events. The prize pools for these tournaments have also grown significantly, with the 2019 DOTA 2 International boasting a winners prize pool of US$13.5 million, out of a total prize pool of US$30.8 million.
Esports has also made significant inroads into traditional media networks. Major networks like ESPN, TBS, SyFy, and Telemundo now broadcast esports events, and traditional sports leagues like the NHL and the NBA have launched their own esports tournaments and leagues.
Players, Teams, and Organizations in Esports
Just like traditional sports, esports is home to a vast array of players, teams, and organizations. Players can either stream themselves playing casually to earn money or join larger organizations to compete for significant cash prizes.
Successful esports athletes can earn six-figure salaries or even millions in a year. Top players often start professionally around age 16 or 17 and retire around age 24. Professional players join teams (in multi-player games) or play solo (in 1v1 games) to compete for cash prizes. Each team specializes and competes in one specific game, such as League of Legends, Dota, or Counter-Strike.
Esports teams, representing the organization they’re a part of, compete in their video game’s respective league where there are regular seasons, playoffs, and world championships. Just as basketball teams are part of the NBA and compete against each other, esports teams (typically under an organization umbrella) compete in video game leagues.
The Financial Dimension of Esports
With a global audience and a rapidly growing market, esports has become a lucrative industry. According to research from Newzoo, the esports industry is estimated to reach $906 million worldwide in 2018 and is expected to surpass $1 billion by 2019. This includes revenue from streaming, media rights, sponsorships, digital revenues, in-game purchases, tickets for events, and merchandise.
Professional esports players can earn considerable incomes from their participation in tournaments. The prize pools for major tournaments often run into millions of dollars. For instance, the prize pool for the 2016 The International Dota 2 Championship was a staggering $20.8 million. Beyond tournament winnings, players can also earn money from sponsorships, endorsements, and league salaries.
The Future of Esports
The esports industry shows no signs of slowing down. It continues to attract significant investment from major players in the sports, technology, and entertainment sectors. Today, esports is considered one of the most promising and lucrative markets in the technology and entertainment sectors.
As esports continue to grow and evolve, new opportunities are likely to emerge for players, investors, and fans alike. From streaming services and live events to game development and player training, the esports industry is ripe for innovation and growth.
In conclusion, esports has come a long way from its humble beginnings. As the industry continues to evolve, it is redefining the concept of sports and entertainment. With its global audience, lucrative opportunities, and promising future, esports is set to become an integral part of our digital culture. Whether you are a player, an investor, or a fan, the world of esports offers an exciting and rewarding journey.