How Did Esports Become “A Thing?”
How did video games evolve a multi-billion dollar industry?
2000 was a significant year for the technology world. The dot-com bubble burst. The first 1GHz home computer was sold. South Korea began licensing professional gamers and now esports has since become one of the world’s fastest-growing entertainment sectors. The industry is now commanding global audiences of 300+ million people. This is the tale of how gaming went from being an active event to a passive spectator sport.
What are esports?
In essence, esports involves multiplayer video games that are played at a professional level. An entire industry has developed around popular titles. The major gaming sectors can be broken up into:
- first-person shooters
- fighting games
- arena-based team competitions
Dota 2-based tournament, The International, now has a prize fund of over $20 million.
In total the global esports industry has been conservatively valued at half a billion dollars. Top players have become fêted superstars with blue-chip shirt sponsors and full-time managers, attending tournaments in sold-out auditoriums with millions of people watching via live streams.
That’s a lot of zeros!
It may seem bizarre that someone can earn a fortune for playing computer games, but gaming as a spectacle has become big business. Indeed, the concept of watching other people playing a game will be familiar from childhood when patiently waiting for the next ‘turn’. There is a universal appeal to seeing people demonstrating exceptional abilities in any field.
It can be argued that watching a game of FIFA16 is no more remote or detached than watching the FIFA World Cup. In both cases, elite professionals are demonstrating artistry and expertise few of us will ever possess, soundtracked by running commentaries and partisan audiences.
How did this all happen?
Of course, esports didn’t become a multi-million dollar industry by accident. Developers actively design games for this lucrative market, attracting invaluable word-of-mouth publicity that can influence game purchasing decisions. Large tournament audiences appeal to advertisers, who want to ensure their brands and logos are seen by the watching millions.
Big prize funds increase the level of competition, which raises playing standards and improves the level of entertainment. This bolsters audience figures and generates more revenue that can be redirected back into ever-swelling prize pots. This is the virtuous circle which has seen esports spiral beyond even the most optimistic industry expectations since 2010.
All through the wires…
It’s often forgotten that esports depends on stable broadband connections to service its audiences. Tournaments are hosted across local area networks, but people from around the world will live stream these events. Platforms like Twitch provide a reliable streaming service for numerous different platforms and gaming genres. Many streams have commentaries and there’s a focus on encouraging audience discussions about what they’re watching. Major game developers tend to have their own Twitch channels nowadays, with dedicated platforms for creative demonstrations, product launches, press conferences and more.
What’s next?
With ten different titles currently commanding esports prize funds of over a million dollars, this industry is set for continued expansion. There will undoubtedly be a limit to the number of people willing to spend their time passively observing (rather than participating), yet watching sport on TV has been a national pastime for decades. As rising broadband speeds improve the quality of live streams, and more people discover this entertainment sector for the first time, esports may finally achieve widespread recognition – even among people with no desire to play Halo or League of Legends themselves.