Esports Is Big Business

Consistent growth and prospective returns are the criteria that top every investor's checklist. Past performance, business planning, and concept come later. The esports industry has already fulfilled all the requirements, evident from its incredible growth over the past few years. The esports industry is now worth over a billion dollars in the U.S. and is likely to rise even higher in the next few years. According to Forbes, esports has a bigger audience than Major League Baseball. Viewership will soar from 335 million in 2017 to 646 million in 2023. This data makes it a lucrative market for investors and stakeholders.

"The eSports industry has exploded in the last few years, drawing in huge investments," says Robel Getaneh, founder of a private equity firm that invests in high-growth gaming companies. "The stakes are high, and everyone wants in on the action." 

Esports has transformed online video gaming into an immersive sports event. The experience is similar to watching a professional sporting event in virtual reality. There are competitions where professional video gamers square off individually or in teams. Winners receive significant cash prizes. 

The esports industry has brought the fun and excitement of field sports to bedrooms and living rooms. According to the data, 2022 saw a staggering 532 million esports viewership globally. The 2018 League of Legends Championship had an impressive viewership of 200 million. Going by these figures, esports has become a lucrative investment option. 

There are many reasons for this steep rise in the popularity of esports. The prime reason can be the solid social element in esports that effortlessly connects fans to game players and teams worldwide through gaming and various social media platforms. With internet users growing worldwide, websites like YouTube and Twitch are scaling their systems to support the large influx of gaming audiences. Twitch is one of the biggest live-streaming platforms in the US, owned by Amazon. Currently, the platform has approximately 5 million viewers who spend 106 minutes on average every day watching live gaming. 

While the rankings of the most popular eSports games tend to change monthly, the ten most watched video games on the leading streaming website, Twitch, remain consistent. Also, for people less familiar with eSports, the most popular games aren't conventional sports-related games like Madden and FIFA. Instead, the popular eSports genres include multiplayer online battle arenas, real-time strategy, and first-person shooter games.

It is no secret that eSports has received considerable investment increases to support and facilitate its proliferation. Many eSports organizations like FaZe Clan are providing merchandise to increase reach, with tournament prize money rising at an impressive average rate of 42% per annum.

The eSports market has already surpassed the $1 billion mark and is not slowing down anytime soon. Robel believes investors and brands who act early will be greatly rewarded. Also, with younger generations, including women, inspired to pursue profitable careers in gaming, the market will become more competitive.