Investors take note, eSports is your golden ticket
The future looks bright for the game industry, according to an article published on newzoo.com which includes the research firm’s Global Games Market Report projecting worldwide revenues to reach $107 billion in 2017. This means new markets for gamers to explore. We’ve seen a new wave of technology, including virtual reality (AR), augmented reality (AR), and extended gaming peripherals. The real behemoth in the room is eSports and investors should take note.
So why invest in eSports?
The eSports market will reach $463 million in 2016 according to the newzoo report and will continue to grow. The revenue isn’t just coming from those who take part in eSports, but also being collected from viewers of eSports competitions. In 2016, North America will strengthen its lead in terms of revenues with an anticipated $175 million generated through merchandise, event tickets, sponsorships, player endorsements, and online advertising and media rights.
The eSports market will reach $463 million in 2016
League of Legends by Riot Games is one of the most successful games within the eSports community. In an article by PC Gamer, League of Legends grossed $964 million between January and September of 2014. The revenue was earned strictly through microtransactions. These purchases can be less than $1 used to purchase a unique in game item. This shows how many users participate and spend money in the eSports industry.
Start-ups who get it
The Billionaire, Mark Cuban is also getting in on the sSports action, investing in online betting start-up Unikrn, part of a Series A round of investment worth over 7 million. The platform allows for online betting of live matches.
Targeted towards those who enjoy sitting back and watching the action, Royce Disini brings Mobcrush to the table. Using Mobcrush allows you to stream mobile gameplay. With smart phones and tablets dominating the traffic across the web, there is no question that mobile gaming is going to follow suit. Due to Twitch’s widely used PC based live streaming platform success in the eSports industry, Royce Disini, the CEO of Mobcrush, received an investment of $11 million from Kleiner Perkins Caufield & Byers and several other venture capital funds; according to this LA Times article. Kamcord is another program allowing users to record, upload, and watch mobile gameplay. These live, mobile streaming apps are great for learning new techniques or claim bragging rights.
Royce Disini, the CEO of Mobcrush, received an investment of $11 million
Gamers have always dreamed about using their skills to compete for cash or virtual items. Kickback makes this possible. Competitive gamers can now compete in player-versus-player matches and bet on their win. Kickback also allows competitors to bet anywhere from $1 to $5 per match. The site even runs daily free to enter competitions awarding prizes to the winners. Competitions on Kickback can even be streamed live for those who enjoy being eSports spectators.
The final word
Fortune predicts the eSports industry could gross beyond $1 billion as early as 2018. There is also an estimation of 335 million viewers by 2017. Investing in eSports opens paths to endless revenue. The eSports industry will continue to grow and opportunities for financial investors are at an all time high.