The Science Behind the Esports BOOM!
In 2022, Esports was a $1.39 billion industry. After many sponsorships and investments from prominent companies like Coca-Cola and Intel, Esports is booming. In hindsight, no one could have ever predicted this would happen. When reading about the history of Esports, I learned the industry has existed since 1972. After I finished, I found it astonishing that in 50 years, Esports transformed from retro games like Pac-Man to modern games like League of Legends. If you juxtapose the two games, there are evident differences in quality, complexity, etc. As a result, I was intrigued and compelled to write a story about the exponential growth of the Esports industry.
Recently, Esports has rapidly grown and is spreading around the world. The growth is due to technology advancements that allow for higher Wi-Fi speeds, better computers for gaming, and the introduction of streaming platforms like YouTube and Twitch. These platforms have introduced Esports globally and created a growing community with Esports. As a result, Esports have begun to build a huge fanbase and gain popularity.
Also, Esports has changed from a hobby to a professional industry, with events, leagues, and player contracts, as stated by this article. The professionalism has made Esports appealing to players and fans and is a factor in why the industry is booming. Also, it has become a feasible career path for gamers and an intriguing source of entertainment for fans.
Another factor of the Esports boom is the sponsorships from companies like Coca-Cola and Intel. According to this article, Esports gets about $837 million from sponsorships. The number is staggering because it is quadruple the amount of money media rights bring in, which is $207 million. Therefore, these companies have been a key player in why Esports has gained popularity and will continue to do so. However, the booming industry also grants other companies lucrative business opportunities. These sponsorships reinforce how an industry can rise from the ashes if passion and potential are the building blocks.
Further, Esports has the advantage of generational fandom. For example, most of their audience is between ages 16 and 34. Therefore, as Esports continues to grow, most of their audience will still be young and interested in gaming. On the other hand, a sport like Baseball usually tends to have older fans. Also, fans from Gen Z will continue to make money as they get jobs and be willing to spend more on the Esports industry. As a result, the sky is the limit for Esports’s potential as an industry.
Overall, Esports is a fresh and upcoming industry looking to be the next big thing. Through its professionalism, advancements in technology, and sponsorships from big companies, Esports has become a multi-billion dollar industry. With high hopes for Esports to keep growing, companies are capitalizing on the lucrative opportunities by creating new events and sponsoring teams before it’s too late. Ultimately, the Esports boom has been a long time in the making; it just had to wait until the perfect moment to arrive.
