Not so long ago, eSports was considered an exclusive hobby of nerds who were still stuck in their parentsâ€™ basements. Despite these stereotypes, eSports has managed to show remarkable growth in recent years. Currently, eSports is estimated to be an industry worth close to $300 million.
And thatâ€™s a conservative figure. Thereâ€™s little doubt that the eSports sector is rising. Investors, whether they are gamers or not, can definitely reap wonderful profits this coming year.
Here are several reasons why eSports will become a major sector for investment in 2018 and beyond:
Exponential Growth Reaching a Billion Dollars
The early estimate for eSports revenue in 2017 was close to $492 million. To put that number inÂ perspective, that was over a 50 percent increase from revenue generated in 2015. By 2018, the eSportsÂ sector is estimated to be valued at $1 billion. By 2020, this number is estimated to rise to $1.5 billion.
Though the numbers pale in comparison to the $13 billion the NFL earned this year, the eSports sector isÂ growing remarkably compared to traditional sports. Itâ€™s no more evident than when comparing Ligue 1Â football to eSports. Ligue 1 generated 1.5 billion Euros this year, and by 2020, the eSports industryÂ would be closing this gap. Keep in mind that eSports are relatively new and technology is still improving. Considering all this, the sector is showing signs of thriving in the coming years.
eSports Teams and Players are Already Making Big Wins
The big money is already in eSports, regardless of how new the sector is. There are already major video gaming championships with multimillion-dollar grand prizes. Team Liquid, one of the best-known eSports collectives in the world, recently won $10.8 million in grand prize money for the Dota 2 International Championship games.
When players, championships, and merchandise are thrown in, the investment opportunities for eSports are rife, said eSports investor Jason Sugarman, who is also anÂ investor in Team Liquid. By choosing the right team or a star player, eSports investors can make as muchÂ money as those who invest in traditional sports. In the future, the profit margins would only increase.
Live Streaming is Taking eSports Mainstream
The rise of eSports can be attributed to the recent popularity of live streaming platforms like Twitch,Â which are introducing eSports to mass-market audiences. The live streaming of eSports events isÂ becoming increasingly popular around the world. Live streaming is popular in general among theÂ younger Gen Z crowd. As more social media networks, gaming consoles, and mobile apps introduce live streaming capabilities, the popularity of eSports would only increase.
Additionally, the gaming console market is growing. Major tech companies like Microsoft are investingÂ big in the console market, which has shown significant growth in recent years. Traditional gamingÂ companies like Activision and Capcom are introducing new games to mobile platforms as well.
ThisÂ means that certain popular titles like Halo and Call of Duty continue to be major attractions, whileÂ mobile games like Hearthstone are also on the rise. This diversifies the market and attracts newÂ audiences. Not to mention the fact that various platforms present incredible new opportunities to investÂ in, which should not be missed.