A Future in Esports
Thousands of fans decked in merch, holding tickets to the Staples Center, ready to watch their favourite sport. Sound familiar? Los Angeles locals may say the thousands of fans are seated at the stadium to watch their local basketball team play. However, just three years ago, the Staples Center was filled with 18,188 fans from across the planet watching the 2016 League of Legends Championship Finals. But even that number pales to the nearly 400 million unique viewers worldwide that tuned in to watch the tournament. Give a warm welcome to the newest spectator sport in the industry, esports.
Despite being a relatively new industry, esports — or professional electronic sports — has been gaining traction ever since its creation less than a century ago. My primary motive for dedicating my expert project to esports is thanks to my personal association with the industry, having been an avid gamer since a young age as well as founding an esports company, Aether United, the summer of my sophomore year. Especially after the doubt I received from investors and family members over the potential success of the company, I discovered there are more skeptics who believe esports is just a niche than expected.
As such, my initial incentive for this project was to end the long-lasting stigma that competitive video gaming was a sinkhole of time and energy. I soon discovered that these skeptic views have become obsolete as the esports industry continues to expand exponentially, extending its reach to rival those of traditional sports. As such, I realized that esports has already begun challenging those stigmas that I grew up with and faced during my Aether United days. Therefore, for the second semester, I chose to expand my topic to discuss potential issues within esports that must be resolved before they hamper the unrealized possibilities of esports. Most examples used in this paper will use esports’ most popular game, League of Legends — created by Riot Games.
Sorry Nerds: Video Games Are Not A Sport
“Gaming is not only a compulsion… [it’s] a simulation of being an expert” (Walther 7). Matthew Walther, an author for The Week, is a major opponent against the esports industry. However, Walther’s claim is hardly a hot topic; Ever since the advent of video gaming in the 1970s with the introduction of Atari consoles and arcade games, mainstream media accused young gamers of being lazy, “abolitionists of their own future”. Early critics may have had good reason to create these stereotypes, but upon reviewing gaming history, it is safe to say video games have ascended those stereotypes.
Video games often drive strong parallels with traditional offline sports, even in the 70s. Players couldn’t wait to get out of school or work to head to the arcades, just like others could not wait to get out to play a game of basketball. Just like offline sports, video games offered players “on-demand competition and interaction” with their friends (Paradise 7). As technology improved and the internet was introduced to the world, video games as a hobby exploded. In Andrew Paradise’s words, “three core elements [contribute] to the esports industry’s rise as the next major spectator sport: streamed competitions with organized leagues, professional players that can be viewed anywhere, and live events in major offline sports venues” (8).
What defines a sport? Webster, a well-respected online dictionary, defines sports as a contest or game in which people do certain activities according to a specific set of rules and compete against each other. Esports is a billion dollar industry that does just that. Roland Li defines each game that classifies under the genre of ‘esports’ as sharing a common theme, “they are multiplayer games where all teams participating compete to win, applying strategy, skill, and teamwork to achieve their goal” (13).
You can get Roland Li’s book, Good Luck Have Fun: The Rise of eSports here
Still, this does not satisfy the esports opposition. Walther argues “the loosest imaginable definition [for] a sport involves not only skill and competition but physical exertion and at least the possibility of injury” (4). Unfortunately, his accusation lies far from reality. Anything done to an extreme brings the possibility of injury, and video gaming is not an exception. Timothy Martin, writer for the Wall Street Journal, warns that “overuse risk pile[s] up over the years, as players train 10 hours a day” (2), which is exemplified through early esports athletes who retired early due to their injuries. Current athletes like Jonathan Jablonowski share their sentiments, “‘I have seen these godlike players winning tournaments, then they have to retire and take a leave because of an injury… I have this ideal where I have a long career’” (Martin 3). As opponents continue to challenge esports, it has already proven its legitimacy as a prominent contender in the spectator sports industry.
Journey to Legitimacy
As a spectator sport, esports continues to draw parallels with traditional sports with its career opportunities. Mai-Hanh Nguyen, writer for Business Insider, separates them into 4 distinct categories: Athletics, Marketing, Event Planning, and Streaming/Broadcasting. Each of these plays a distinct role in creating an exciting environment for fans worldwide to tune in. When it comes down to defining a spectator sport, having an audience who wants to watch your product is paramount. And esports has that audience.
Nonetheless, esports has made great strides. Not even a decade ago, supporters of the industry were hard-pressed to prove that esports was not just a niche as a result of nearly five decades of video-gaming history not providing solid success stories. However, since esports’ inception, the industry has taken great strides towards great personal growth. In League of Legends specifically, Riot Games franchising of the North American Championship League has cascaded to successfully merging into mainstream media and the acquisition of established corporations such as Mastercard and State Farm as powerful sponsors for their international tournaments.
Resulting from these dedicated investments, esports revenue is expected to reach $1.5 billion by the year 2020 (see diagram on next page), a year-on-year growth of nearly 40% according to Newzoo, the leading statistics gatherer for esports. Interestingly enough, Paradise discovered that traditional sports leagues ”provide an intriguing analogy. [The NFL and NBA] were founded in the first half of the 20th century, but… only became revenue powerhouses in the late 1990s…” (Paradise). Essentially, our nation’s largest offline sports took five decades to become the juggernauts they are today; With the fifth decade of esports on the horizon, it seems that a similar trend will be seen with this new industry.
Game Over?
During my transition into the second semester of research, Riot Games, the creator of League of Legends, was sued on grounds of a discrimination scandal. Despite all of the esports successes in the past decade, it became apparent that with great recognition, comes great responsibility. As esports grows and more people become aware of its existence, industry shortcomings that could have been ignored in the past must be recognized. I came into the second semester determined to discover the potential pitfalls esports will have to identify and resolve before they consume the industry.
My initial dive turned up unexpected results. I consulted Ovilee May, hostess for LCS, the League of Legends Championship League for North America, on the issues plaguing the esports industry. The answer I received from her were unexpected; She brought up an internal issue that has not been talked about often. She informed me that although “popular, esports is still losing more money than it’s making…” (May). Upon further research, out of the $900M total revenue gained from esports in 2018, nearly 80% of esports revenue is generated by outside sponsors (see diagram). Although actual transactions earn ~40% of this income, through exchanging media rights and advertising space; more than half of esports revenue comes from sponsors who invest money into the industry without expecting an immediate return.
While this speculation provides esports’ with its exponential year-on-year growth, it also creates a financial bubble as the industry becomes increasingly dependant on sponsorship handouts. Ovilee May cautions that “people [must] begin to start seriously looking for solutions in making money.” Unlike other businesses, esports does not sell a tangible product, therefore it becomes more difficult to determine whether sponsor speculation corresponds with actual industry value. Nonetheless, the spectator sports industry has a unique niche in how they earn their revenue; Instead of profiting from selling a product, they sell a unique experience for hundreds of millions of people globally. Consequently, esports competition should be transformed into a marketing medium for outside sponsors. As esports continues to expand, esports should look to amass revenue by selling advertisement space to an ever-increasing number of partners.
The culture in gaming has always been a source of scorn by gamers and observers alike. From personal experience, a computer screen enables the dehumanization of player interaction, creating a culture where cyberbullying others is expected. As such, many players who do not perform to their team’s expectations will face intimidation and harmful attacks from their team. However, it does not just end there. With the appropriation of this culture, professional players have received multiple death threats. As a result, these actions have led to many esports organizations cancelling scheduled events such as fan meetups. If the amount and severity of these actions were to increase, the consequences will be devastating, ranging from unhappy fans and lost sponsors, to the loss of human life. As a response, instead of taking a passive stance, esports corporations must actively punish toxicity and publicly display that this behaviour and culture will not be tolerated.
The Athlete’s Mind
Back behind the scenes, CEOs of competing team organizations are hard at work to mould their teams into the next international superpower. With few rules and regulations, many organizations have their athletes work ten hour days, tied to the computer screen and a gaming chair. In Ovilee’s interview, she was optimistic, “everyone is driven by their love for the game…” (3). Although passion plays a vital part in any athletes mentality, it is hard to believe that athletes should be working ten hour days. Andrejkovics, author for The Invisible Mind: Mindset of a Winning Team, shares his thoughts, “many organizations are blinded by ambition and force their athletes to work under the veil of ‘work ethic’… Instead, they are facilitating injury and burnout” (51). Fans often have only one expectation of athletes: to perform well through training and practice. They do not often realize that athletes are also human and need to recover as well. Jared Tendler, the sports therapist at Team Liquid — a well-respected organization within esports — echoes similar thoughts, “it’s important to preserve the athlete’s mind, watching a movie or hitting the gym, although not directly influencing play… these are necessary activities to support high-level performance” (72). Playing any professional sport requires a balance and allowing an athlete to recuperate mentally plays a role just as important as pushing them through rigorous practice.
You can get Zoltan Andrejkovics book on mental resiliance in esports here
Good Game, Well Played
Esports has come a long way since its humble beginnings back in the 1970s. Although debating esports legitimacy is still considered a hot topic, esports has already proven itself. Within five decades, competitive video gaming began its rapid ascent to become one of the top grossing entertainment industries. Despite its rough journey full of naysayers, esports has demonstrated its legitimacy as a spectator sport, drawing many parallels with its offline competitors in its structure, career offerings, and business model.
As we look towards the future, we must acknowledge that esports is not perfect yet. As the young industry continues its rapid expansion, every esports entity has a role to play in maintaining its success. First and foremost, gaming corporations must devote additional time and resources for improving their business model to create a sustainable revenue flow. Just as important, esports organizations must invest in their athletes to foster a healthy and player-conscious environment to support high-level performance for their athletes to practice, perform, and persevere. Lastly, it’s up to the community to cultivate a new culture devoid of toxicity.
Looking back at my expert project, it is amazing to see how far esports has come. Just as esports has overcome the negative stereotypes bound to its name for years, I am confident that the industry has what it takes to solve these three issues. And when we have, it truly will be a “Good Game, Well Played.”
Work Cited
Redbeard. “2014 World Championship Heads to South Korea.” League of Legends, 2018.
Cheng, Ryan. Overwatch SF Bay Area Open. Facebook, 22 August 2017.
Walther, Matthew. “Sorry, nerds: Video games are not a sport.” The Week, 4 May 2018.
Burt, Preston. “5 Things Wrong With the Arcade in ‘Stranger Things 2’.” GeekDad, 31 Dec. 2017.
Paradise, Andrew. “The Rise of Esports as a Spectator Phenomenon.” VentureBeat, VentureBeat, 30 Nov. 2018.
Li, Roland. Good Luck Have Fun: the Rise of ESports. Skyhorse Publishing, 2017.
Martin, Timothy W. “‘My Arms Were Really Skinny.’ Professional Videogamers Are Working Out.” The Wall Street Journal, Dow Jones & Company, 11 Oct. 2018.
Nguyen, Mai-Hanh. “Jobs and Careers in the ESports & Video Gaming Industry Continue to Grow.” Business Insider, Business Insider, 8 Dec. 2017.
May, Ovilee. Personal Interview. 30 Dec. 2018.
Various Authors. “Games, Esports, and Mobile Market Research and Data.” Newzoo. 2019.
Shum. “Someone Made a Death Threat Yesterday.” Twitter, Twitter, 9 Sept. 2018.
Andrewjkovics, Zolaton. The Invisible Mind: Mindset of a Winning Team. CreateSpace Ind, 2016
