.webp)
Oops! Something went wrong while submitting the form.
Phaedra Solutions, All rights reserved 2024
Reach out to us!
Oops! Something went wrong while submitting the form.
Esports (electronic sports) is no longer just a hobby. It's a billion-dollar industry poised to outshine traditional sports.
Games like League of Legends, Dota 2, Fortnite, and Call of Duty have skyrocketed in popularity. They've attracted millions to the Esports realm. As a result, the entertainment industry is witnessing a seismic shift. And Esports events are at the center of it.
With sponsors and organizers itching to get involved, everyone has the same question on their minds. “Will Esports become the future of entertainment?”
Join us as we explore:
Despite humble origins, Esports has turned into a global phenomenon. Currently, the Esports market is valued at over $1.6 billion. This year (2024) was particularly special for the Esports ecosystem as the first-ever Esports World Cup took place.
Remember the days when you had to go to arcades for competitive video gaming?
Purchasing coins. Inserting them in slots. And finally enjoying your favorite arcade games like Street Fighter! Now, we've got video games with:
All of this, while playing from the comfort of your home. That's how much the Esports industry has grown.
Before we dive into the popularity of Esports, let us ask you ‘Why are video games so entertaining?’ Simply because they:
The same logic applies to Esports. The only difference is that Esports let you compete online against real players. The turning point for the Esports industry’s growth came with the release of League of Legends. Specifically, its multiple online battle arena gameplay.
With its release, players were suddenly able to compete with each other from anywhere in the world. All you needed was an internet connection!
League of Legends was able to build such a strong fanbase that the League of Legends World Championship was established. It was such a success that other games started to join the trend. These games started their own competitions with prize pools of millions of dollars.
Today, the Esports industry has become wildly popular with many calling it the future of entertainment.
Traditional sports are often just called ‘sports’ as there used to be only one type of sport.
However, with the rise of Esports, the word ‘Sports’ has had to take a back seat and is now classified as ‘Traditional sports’. But does that mean that Esports is bigger than sports? Well, not yet, but it’s getting there quickly!
We analyzed tons of data to evaluate Esports in comparison to sports. The data we found may surprise you:
The data we found all points to one thing - Esports is the future.
While traditional sports will keep their share of the market, Esports is likely to develop into something much much bigger.
Let's look at 7 reasons Esports is considered the future of entertainment:
The popularity of Esports has exploded. Esports tournaments have started to outrank traditional gaming tournaments in terms of viewership.
For example, in 2021, the Championship of “League Of Legends” got more viewership than the NBA Finals in 2022! Moreover, it is estimated that Esports has a global audience of over 530 Million which is higher than the traditional gaming industry.
Live streaming platforms like YouTube and Twitch have also played a huge role in bringing more viewership to these events. Of course, there’s enormous potential to grow further. For example, mobile Esports is popular in China and Southeast Asia, but untapped markets exist elsewhere.
Large game publishers could enter these untapped markets and claim them to take their viewership to the next level. Another interesting stat to highlight is that the esports gaming industry is attracting a younger audience than the traditional sports industry.
A survey conducted in 2021 highlighted that around 60% of the esports tournament's viewers are between the ages of 18 and 34. With such a massive audience from Gen Z and Millenials particularly, we can guess that the Esports entertainment industry is here to stay.
Is Is Esports entertainment a good investment? You bet!
The primary revenue stream of Esports game competitions is sponsorship and ticket sales. However, several other opportunities are available for investors too. They can invest smartly in the Esports industry to get substantial profit (celebrities are already doing this).
Some of the companies that have already invested in Esport entertainment are getting the highest ROI. A recent study by Nielsen Sports and Entertainment and Fnatic indicated that the Esports audience is growing from 10% to 20% each year.
This means investment opportunities are only set to grow with many even considering building custom Esports tournament platforms. Players, fans, sponsors, and organizers from all over the world can join such platforms to enjoy competitive matches.
Want to know why Esports is the future? Well simply because it has two unique advantages over the traditional sports industry. High growth potential plus Scalable Esports platforms.
At the time of writing, only 15% of gamers worldwide are following Esports competitions. However, the growth of Esports is making this number rise at a faster pace. Newzoo estimates that with 3 billion gamers in the world, Esports competitions are being followed by over 500 million fans.
That means 2.5 billion gamers can still join the audience! And the best part is that Esports tournament platforms can be scaled to cater to this audience. One last thing to point out is that the current Esports growth is primarily due to a handful of games.
Over the last 30 years, only 586 games across 12 genres have had Esports Competitions (mostly in the Fighting and First Person Shooter Genres). That means there’s potential for many more games to enter Esports competitions and claim the gold at the end of the rainbow.
Money makes the world go round. It’s as simple as that. Luckily, Esports enthusiasts will find that the revenue streams in Esports are immense and hold untapped potential.
Successful Esports organizations use their fan base to drive sales, memberships, and crowdfunding by tapping into the passion of the Esports community. These organizations generate revenue through various means such as:
Further, the development of the Esports industry means individuals involved in the development process will also generate revenue as new jobs will be created. It’s a win-win situation for everyone involved.
Esports is a rising industry. That means it requires tons of content. Streamers capturing every moment. Video producers crafting compelling narratives around tournaments. Writers and journalists covering events.
We have it all.
These curious folks are forming a solid backbone for the future of Esports and encouraging growth in the industry. Influencers even have the chance to build their brands by using a bit of entrepreneurial intellect.
For example, an influencer who’s recognized for his Esports expertise can attract tons of individuals to their own Esports platform (if they choose to develop one). By delivering compelling content, content creators and influencers are taking Esports to a whole new level.
The future of Esports holds enormous potential because there’s tons of room for innovation.
Esports platform/game creators can experiment and create brand-new genres that capture the interest of the Esports community. For example, Minecraft and ARMA III introduced the first battle royale mods in 2012 and 2014.
Since then, thousands of games have followed suit and developed battle royale versions of their own (most notably Fortnite, PUBG, and Call of Duty). This highlights the fact that the Esports industry is still developing and tons of trends are yet to come.
Those who jump on the Esports bandwagon and start providing innovative games and game modes should have a promising future.
Read More: 5 Must-Have Feature to Deliver eSports Gaming Stats
The future of Esports looks promising due to the increasing numbers of fans and followers.
The overall revenue of this industry is expected to reach up to $1.87 billion by 2025. The growing number of sponsors and broadcast partners indicates that the Esports market will soon outrank the traditional gaming industry.
This industry is expected to cement itself in the mainstream via social media channels, live-streaming platforms, and franchise-based leagues. Universities and educational institutes are even adding Esports games programs and scholarships where players are treated like celebrities and professional athletes.
Considering all this, it’s safe to say that Esports is slowly but surely transforming entertainment.
Choosing the Esports lifestyle is a pretty good option due to its massive growth and success. Plus, who doesn’t enjoy playing free online games? The Esports world comes with a vibrant culture where the community immerses itself in the world of competitive games.
They participate in Esports conventions and fan gatherings which makes Esports gaming not only an activity but a lifestyle. This dedicated Esports community plays an active role in redefining the meaning of live entertainment for individuals worldwide.
Furthermore, Esports competitions also have a huge hand in developing several personality traits that help in learning and growth. If you’re thinking about starting an Esports career or developing an Esports platform, this is your sign to give it a go!
Business is booming in the Esports world. With the business of Esports experiencing massive growth, tons of trends have emerged that require gamers and organizations to stay up to date.
The top 10 emerging trends in the Esports business that you should keep an eye on are:
Incorporating these trends into your Esports competitions can help you steer toward success in the Esports industry.
At Phaedra Solutions, we specialize in crafting custom Esports tournament platforms that redefine the competitive gaming experience.
Our unique edge? We're not just developers – we're passionate gamers ourselves. This dual perspective allows us to:
Our expertise spans a wide range of Esports necessities, including tournament management systems, real-time analytics, and interactive features. By partnering with Phaedra Solutions, you're choosing to stay at the forefront of the rapidly evolving Esports landscape.
It’s the Esports era and we’re lucky enough to be living in it.
Esports has quickly become one of the best entertainment channels. It’s reshaping live entertainment and how competitive teams compete as we know it. More and more sponsors, organizers, fans, and streamers are shifting their focus to this industry as the future looks promising.
Esports game platforms can be game changers as they give streamers a chance to collaborate and enjoy competitive gaming. Fans can also join the live streams and watch their favorite gamers in action. This will ultimately help Esports gaming platforms witness ultimate growth and ROI.
Interested in developing top-rated Esports tournament platforms? Contact Phaedra Solutions and speak to our consultants to get started. Let’s build the dream you envisioned and shape an even brighter future for Esports together.