Esports Ecosystem and Landscape

Nico Besombes
4 min readJul 29, 2019

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Among the consequences of the fragmentation and dispersal of the many esports stakeholders is the difficulty for people unfamiliar with it (e.g. outsiders or non endemic brands) to understand its ecosystem: Who are the stakeholders who make it up and how do they interact with each other?

Many schemes exist and try to offer the most objective and exhaustive vision of this ecosystem. However, they have never totally satisfied me because they are unfortunately either (i) too simplistic, (ii) incomplete or (iii) do not clearly represent the interactions between the different stakeholders. Here are some of them that I used for a while.

That is why, after many months of using them while being dissatisfied, I tried in turn to propose a clear and faithful representation of the esports landscape. Here follows the overall result at a glance. However, there is an obvious limit: the multiplicity and diversity of competitive scenes. There are indeed almost as many models as there are games, and what is true for one is not necessarily true for the other.

Broadly speaking, two models coexist:

An internalized andLeague-oriented model: in which a roster of players (e.g. Tim “Nemesis” Lipovšek, Gabriël “Bwipo” Rau, Mads “Broxah” Brock-Pedersen, Zdravets “Hylissang” Galabov, Martin “Rekkles” Larsson) represent a franchise (Fnatic) and play on a video game (League of Legends) whose intellectual property belongs to a publisher (Riot Games). In this case, the game publisher is often also the organiser of the competitive circuit (League European Championship) which is broadcast on the dedicated channel of the streaming platform (Twitch).

League-oriented model (e.g. League of Legends)

An outsourced and Tournament-oriented model: in which a roster of players (e.g. Nathan “NBK” Schmitt, Dan “apEX” Madesclaire, Cédric “RpK” Guipouy, Mathieu “ZywOo” Herbaut, Alex “ALEX” McMeekin) represent a team (Team Vitality) and play on a video game (Counter-Strike: Global Offensive) whose intellectual property belongs to a publisher (Valve). In this case, the game publisher delegates most of the time the organization of the consecutive stages of the competitive circuit (ESL One) to a third party organization (operator) specialized in esports events (ESL) whose tournament is broadcast on the dedicated channel of the streaming platform (Twitch).

Tournament-oriented model (e.g. Counter-Strike: Global Offensive)

Then, whatever the model, brands and investors come to finance this ecosystem by sponsoring either:
1. A player (e.g. Nike with Jian “Uzi” Zihao),
2. A team (e.g. Gillet with Team Solo Mid),
3. A competition, whether a regular league or an episodic tournament (e.g. Toyota and the Overwatch League),
4. An event organiser (e.g. Intel and ESL).

The investors can also partner directly with the publisher to gain visibility within the game’s virtual universe (e.g. NFL with Epic Games on Fortnite Battle Royal).

Numerous investment opportunities for brands with the multiple stakeholders of the ecoystem

While historically, it was initially endemic brands (linked to the world of video games) that invested in esports (such as hardware creators and telecommunications services), non-endemic brands (outside the world of video games) gradually focused on this phenomenon in order to reach an audience that tends to escape them (Millenials and Gen Z). The business sectors of these investors are as diverse as the car industry, banking, cosmetics, beverages (energizing sodas and soft drinks), fast foods, aeronautics, insurance, apparel, betting and gambling, etc.

Finally, fans and spectators also participate in the economic model of this ecosystem in several ways:
1. They enjoy watching their favorite players train while they are streaming and donate to them (e.g. Jacob “Jake” Lyon, Overwatch League player for the Houston Outlaws),
2. They buy merchandising from their favorite teams and players (jerseys, caps, hoodies, mugs, keychains, etc.),
3. They play the game themselves and make in-games purchases (e.g. skins and cosmetics from their favorite team),
4. They travel to the stadiums and buy tickets for major international events (e.g. the Overwatch League Grand Finals),
5. They follow the competitions from home by subscribing to the channel that broadcasts the event on the streaming platform (e.g. the Overwatch League official channel).

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