A study conducted by market research firm Newzoo estimates that by the end of 2018, the eSports industry could be worth as much as $138 billion. The booming industry could achieve further growth with the introduction of new video game content, products and gaming events around the world.
“No question this is changing the landscape for media companies and how people are participating in sports,” said Tim Seymour, managing partner and co-founder at Triogem Asset Management, in an interview with CNBC’s “Fast Money.”
The hedge fund manager pointed to the rising popularity of eSports events as an indicator of the market opportunity. Last week, Activision Blizzard Inc. hosted its first ever Grand Finals for its mega-franchise “Overwatch,” and sold out Brooklyn’s Barclays Center. The futuristic team-based shooter game marks Activision’s $8 billion franchise, securing that spot in less than a year after its May 2016 release next to titles like “Call of Duty” and “World of Warcraft.”
“The fan base is rabid,” said Seymour. “The excitement is there. And it’s all demographics. It’s not just guys. It’s not just girls. It’s not just young folks. It’s old folks.” According to Newzoo, which tracks usage and trends in eSports, video games and mobile, about 2.3 billion gamers around the world will shell out $137.9 billion on games this year. Seymour added that media giants are now getting into eSports, with the Walt Disney Co. broadcasting “Overwatch” games on ESPN.
Big money is being made buying teams and video game platforms. Jack Etienne, the owner of the eSports team London Spitfire, told CNBC he made roughly $1 million dollars from winning the recent “Overwatch” event.
Etienne added that investors can invest in products and video content intended to improve the user experience, such as entertainment software and video games published Blizzard Entertainment, which is owned by Activision.
Source: investopedia.com / Shoshanna Delventhal
eSports market projected to touch $138B in 2018
ByNiji Narayan
Aug 3, 2018
By Niji Narayan
Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.