Video games are seen by many as a flippant, childish matter, a pastime for youngsters. The gaming industry is, in turn, a massive business generating multi-billion dollar revenues. And one of its branches — competitive gaming or eSports — is becoming not only a veritable spectator sport but an increasingly viable career path for many.
Over the last few years, eSports has seen its viewership explode; last year, specialists counted more than 200 million regular and over 250 million occasional viewers on Twitch and YouTube — and with it, the growth of the number of teams, tournaments, and competitions. And, of course, the pro gamers’ revenues. And eSports will continue to grow in 2020 and beyond.
How much money does a professional gamer make?
According to some reports, a professional gamer working with a team can have a salary anywhere between $3000 and $5000 a month, often coupled with benefits like retirement plans. Plus, gamers almost always get extra revenue from streaming, broadcasts, endorsements, and sponsorship money.
How much the eSports industry is worth?
According to gaming intelligence specialist Newzoo, the revenues generated by eSports will surpass $1 billion this year. And in a couple of years, its value is expected to double. The biggest market for eSports today is China, followed by North America, and Europe. The audience of eSports, in general, is expected to grow to almost 500 million people this year — perhaps more, considering the lack of live sports caused by the ongoing pandemic.
Investing in eSports?
Every major video game developer wants a slice of the ever-growing eSports pie. There are several stocks that are linked to the industry, usually well-known names of the video gaming market.
Riot Games, the company behind one of the best-known eSports game League of Legends, is part of China’s Tencent. Activision Blizzard runs Overwatch and Call of Duty, Take-Two Interactive has its NBA 2K tournament, and Electronic Arts is behind tournaments backed by some of the biggest sports leagues on the planet, including FIFA, Formula One, NFL, and several others.
Besides, there are companies that are not directly involved in the eSports themselves but the platforms that make it tick.
This year, Alphabet — Google’s parent company — has announced a multi-year deal with Activision Blizzard, according to which YouTube will be used as the exclusive platform for the gaming company’s eSports events. Amazon’s Twitch is the go-to platform for many other eSports events, plus the company runs its own Amazon University Esports series involving students at universities around the world. Intel has been a long-time sponsor for eSports events, being the technological partner of the Electronic Sports League. And Disney has signed a deal with Activision Blizzard to broadcast the game developer’s Overwatch League.
The bottom line is that eSports is slowly becoming one of the biggest spectator sports in the world, especially by relying on the Internet to reach its viewers — but it’s slowly finding its way to the traditional media too. And its value is only expected to continue growing at a quick pace in the coming years.
Photo Credit: Lolesports
Great question. Really looked at this last year since I work with teens. Only stock I wanted to buy was twitch and Amazon already bought it! The issue is the games are novelty. I did tell the kids the outfits they bought in Fortnight were like paper dolls. Would we invest in board games? Video games to me trade like a commodity. Bottom line is follow the money! What are the top 33% spending money on? What are the bottom 33% financing with debt? The new game is tickets. You watch for a yearly fee at home or go to one event for the same price. Budget. The other way to look at this is WWE that sport comes and goes. The market has really done nothing since January 2018. We have two cultures. Pay check to pay check and watch a screen or wealth builders that get out and live a full life. Neither option is wrong. The key thing to invest in companies like Buffet does. Invest in addictions and the companies that support the addiction! ( Sugar) Just like the orthopedic doctors in town invest their money in complexes in town where there will be broken bones. Other issue is companies will not last for 30 years. I think investing has turned into brand collecting. Instead of getting emotionally attached to their cash flow we get attached to the narrative. The real money was already made before it became retail.
Spot. On. Well done, sir.