eSports for the future

eSports for the future

28 April 2020 Off By Facto Edizioni

/ Analyzing eSports trends: all the figures of their success in a report published in February /

Where are eSports going? Toward bigger and bigger success, that’s where. Some of us may still feel like eSports are something obscure, niche, known by a chosen few, but that has changed. Proof is in the “Global eSports Market Report” published in February by analysts at Newzoo, one of the most trusted sources for market insights in the gaming industry.

Over the past 7 years, the report says, “the landscape has changed dramatically. The audience has grown multiple times over, and the revenues have followed suit. Today, eSports regularly makes headlines in the mainstream press, but it’s also on the minds of the business world.” And what data say is that “2019 was a seminal year for many teams, with tremendous growth in traditional revenue streams such as sponsorship.” The report, based on multiple data sources and meant to give a reliable and realistic overview of the current status and future of the market, goes on to forecast data and trends for 2020: “In the coming year, the global eSports economy will generate revenues of $1.1 billion, a year-on-year growth of +15.7%.” Not bad, eh?

Before we delve a bit further in the data, a look at the definitions. For the sake of this report, Newzoo defines eSports as follows: “professional or semi-professional competitive gaming in an organized format (tournament or league) with a specific goal/prize, such as winning a championship title or prize money.” It is an important distinction, because it leaves out amateur competitions and live streaming around non-competitive gaming, which Newzoo recognizes is “an exciting industry in itself” with “a significant audience overlap.” But the two markets are still very different in their content and monetization strategies, and the data and trends mentioned in the report are limited to eSports as defined above.

Delving now a bit deeper, Newzoo says that most of the revenue (74.8%) will come from sponsorships and media rights, which will total $822.4 million, while consumer spending on tickets and merchandise will total $121.7 million and another $116.3 million will come from game publishers’ investments in supporting tournaments. Interest around eSports is also growing: “The global eSports audience will reach 495 million this year, made up of 222.9 million eSports enthusiasts and a further 272.2 million occasional viewers.” So Newzoo calculates the average revenue per eSports enthusiast to be $4.94 in 2020, up +2.8% from 2019, and anticipates it to grow to $5.27 by 2023.

Geographically, China will remain the largest eSports market in 2020, with revenues for $385.1 million and the largest audience at 162.6 million. North America will be the second-largest region, with revenues for $252.5 million and an audience of 57.2 million, followed by Western Europe with revenues for $201.2 million. However, regions such as Southeast Asia, Japan and Latin America are accelerating to close the gaps between themselves and older, more developed eSports markets.

And what are the trends to keep an eye on?…

Continue reading – p. 62 Games & Parks Industry April 2020