Conference Presentation, Panel
eSports: Will Competitive Gaming Be the Next Major Sport?
- Esports revenue is projected to reach $906 million in 2018 and $1.65 billion by 2021, with broader estimates suggesting an increase to a range of $1.4 billion to $2.4 billion by 2020.
- The global esports audience is forecast to expand from 380 million to approximately 550 million people by 2021, potentially exceeding the viewership of all U.S. professional sports except the NFL by 2020.
- Significant growth is anticipated in mobile esports, described as a "new frontier" that is currently outpacing PC and console growth, with a prediction that the Western market will reach critical mass, albeit later than in Asia.
- The Overwatch League is expected to evolve toward a "tier one" structure comparable to major traditional sports leagues, featuring full home-and-away matches and significant revenue sharing between the league and teams.
- Strategic focus is shifting toward infrastructure development and sustainable venues in the current year, aiming to create long-term league viability and debunk the notion that gaming is a transient lifestyle.
- Brands are expected to increasingly target the millennial demographic (under 35), as traditional sports viewership declines while esports provides a gateway for corporate integration and new revenue streams.
- The industry is predicted to develop a structured talent pipeline for the 2.6 billion global gamers, facilitated by peripheral investments that identify competitive players.
- Branded performance equipment, such as specific pro-model peripherals for famous players, is expected to become available "very soon."
- The Overwatch League and similar titles like League of Legends are anticipated to create lifelong fans among youth, mirroring the retention patterns seen in traditional sports fandom.
- Long-term viability is supported by the continued growth of established games like Counter-Strike and League of Legends, which have remained in the market for over a decade.
- Investment barriers related to misaligned incentives are expected to be overcome, with Activision Blizzard's alignment of interests encouraging teams to commit to extensive development.
- Risks to investment include the potential for competitors to disrupt the market, though successful models aim to extend operations and build out the ecosystem to mitigate this.
- Professional esports athlete careers are projected to lengthen, contrasting with the current norm where careers typically center around the 20 to 24-year-old age range.