In a time where it’s standard for professional athletes to make millions of dollars in their specialized sport; we’re now seeing a similar trend for the top video game players. The realm of online video gaming has truly taken off in recent years. The games that players can compete in range from 3D third-person multiplayer games like League of Legends to first person multiplayer games like Overwatch and Call of Duty to sports games like Madden and FIFA to Nintendo classics like Super Smash Bros. No matter the platform or game, there is a gigantic market for online competition with considerable payouts for the top performing professional players. Such competitions include the Cyberathlete Professional League, World Cyber Games, Major League Gaming, Electronic Sports World Cup and the World e-Sports Games. One of the largest purses for winning one of these tournaments has ventured over $1 million. The outlook for eSports is bright, with even some talks of a push for a potential Olympics bid down the line. Although this is still many years away from becoming remotely possible, the talks of becoming a part of the Olympics is just an example of how fast the market for eSports has snowballed in the last decade.
Most players are fairly young, with the majority of players in their teens or twenties. This demographic fits the model of the current tech industry revolving around young, bright-minded individuals. The tech team LeeWestLA have already worked with one of the most prominent gaming teams, the Immortals, to find the perfect mixed-use location for their new Los Angeles headquarters. The multi-use compound was a perfect fit for them in Mar Vista to accommodate all of their gaming/studio/office needs. Other well known teams include Cloud9, Team Solomid, Counter Logic Gaming, OpTic Gaming, and NRG eSports, which made ESPN headlines earlier this month with the signing of a 17 year old Overwatch player to a $150,000 contract. Clearly, the big money invested in this industry is already there and will only continue to grow as eSports gains notoriety and publicity in the global spotlight.
What once was just an online platform for teenagers to compete online with their friends has turned into an multi-million dollar industry is projected to surpass the $1 billion mark in total revenue by the year 2020. Similar to professional sports organizations, eSport leagues gain most of their revenue through sponsorships and endorsements. Notable sponsors for eSports organizations include: Red Bull, Youtube, Microsoft, Gamestop, IGN, and Doritos. These companies likely observe the noteworthy areas of growth and untapped potential in professional video gaming.
- Source:
- http://www.businessinsider.com/esports-popularity-revenue-forecast-chart-2017-3
- http://www.espn.com/esports/story/_/id/20564135/nrg-signs-17-year-old-overwatch-pro-sinatraa-150k
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