A new entertainment industry seems to be taking over the world in the past couple of years – eSports. Defined as competitive and organized gaming that sees professional video gaming players face off in tournaments for multi-million prize pools, could eSports be the sector that is a true social leveller?

eSports industry to reach $1.5 billion in 2023

The rise of video games has been undoubtedly aided by the recent rapid developments in various types of technology. Developer studios harness cutting-edge tech to make for better gameplay, more realistic graphics, and fast-paced action, and they have recently moved on to incorporate virtual reality elements. Technology has not only made video games better, but also more accessible to everyone. With faster and cheaper broadband now largely available across the globe, the driving force of an internet connection that lies behind video gaming is open to an ever-increasing number of people. At the same time, affordable personal computers and the growth of mobile-based gaming that is open to everyone with a smartphone or tablet has also contributed to the vast numbers of gamers we see today.

Source: Pexels

This expansion of the gaming community has, in turn, boosted viewership for eSports tournaments and competitions. According to data reported by Business Insider, the eSports industry is set to rise to over $1.5 billion by 2023, while its audience will grow to 646 million by that same year, up from 454 million recorded in 2019. Interestingly, roughly 45% of the market in 2019 was powered by mobile gaming. In other words, anyone with a mobile device and a steady internet connection is invited to the eSports universe. Many incredibly successful games like Fortnite and PlayerUnknown's Battlegrounds are heavily geared around their mobile-based versions.

Free and accessible to all: the secret behind the success of eSports

And it is also worth noting that most of the leading video games are free to play, including Fortnite and PUBG. Along with other popular gaming titles like PC-based League of Legends, these titles have intentionally remained open to everyone regardless of budget. This has boosted active player numbers, while in-app purchases and similar revenue streams make up the bulk of the profits generated by these games. The broader gaming industry is no stranger to providing free access to popular titles. For instance, several online casinos offer some of their most popular slots for free, focusing instead on a wider suite of services to generate income. Freely accessible casino games make up a significant share of the total industry, just many of the popular titles around which eSports revolves are also available to everyone for free.

Source: Pixabay

This fundamental premise makes for a more socially fair industry than traditional sports. Professional athletes often have to spend staggering amounts on expensive equipment in order to practice, as well as on coaching and support services to ensure they are taking proper care of their body and are reaching their maximum potential. By contrast, even though professional gamers will at some point have to invest a bit more towards buying a VR headset or a pricier mouse that is more nuanced in its response times, there is no comparing their budget to that of a leading athlete. Sports are often inaccessible to those unable to raise the funds to kickstart their training, while eSports can be played with basic hardware.

And in terms of prospective revenue, eSports is constantly growing. In 2020, the industry is expected to make $614.9 million through sponsorships, another $176.2 million thanks to media rights and $120.2 million in publisher fees. Merch and tickets to events account will account for $106.5 million, while digital and streaming combined make for over $40 million. As the same source reports, the highest-paid professional in the field is currently Danish gamer N0tail (a.k.a. Johan Sundstein), who made 6.9 million so far playing his favorite, Dota 2. The rise of video game streaming services like Twitch has also provided an accessible venue for aspiring gamers to reach out to a growing fanbase.

Imagine starting out with a humble PC and ending up playing for thousands of fans in eSports stadiums across the world, making millions in the process. No wonder that eSports professional players are often considered the contemporary rags-to-riches stories so far exemplified by certain soccer or NBA stars.