The gaming industry is seeing ever-evolving, innovative changes, which are good news for esports enthusiasts and gamers. With esports now recognized in India as a real sport, it is gaining prominence.
Consider the Commonwealth Esports Championship in India, where a bronze medal went to the Indian DOTA 2 squad. With the Asian Games hosting Esports, we are seeing events that would have been unimaginable a short time ago.
Esports and gaming M&A is also taking center stage – Microsoft acquired Activision Blizzard for $68.7 billion. At the same time, Savvy Gaming Group purchased ESL and FACEIT, two of the largest esports companies, in a $1.5 billion deal. Hence, the gaming industry has untapped potential that one can monetize.
History of Esports
Esports describes team and individual video game competitions set up in leagues or exhibitions. Esports started in the 1950s from an initial video game created in 1947. By 1958, it became tennis for two. Gradually games shifted with technology, and more graphics were added, like early Xbox Playston or Nintendo games.
Initial tournaments were championships held for popular games like Space Invaders, which saw about 10,000 people participate, while William Heineman won the top prize.
Given the advances in AI and technology in the past few years, games are now more sophisticated, and viewership is increasing.
Exploring Esports and Gaming
While the titles are interchangeable, eSports and gaming have fundamental differences. Gaming includes popular and competitive video games like Poker, Blackjack, Call of Duty, Counter-Strike, and Candy Crush.
With Esports, the games are more tournament-based and include leagues. Examples are virtual and digital versions of football, cricket, and other sports. And in India, esports is gaining momentum as Esports hall of fame awards go to players performing at the highest levels in India.
Based on the 2022 media and entertainment report from FICCI-EY, esports players doubled from 300,000 in 2020 to 600,000 in 2021. Revenue increased by 29%, going from INR 7.5 billion to INR 9.7 billion the following year.
With growth expected to continue, esports players reached one million last year. Of that, 20% were women, as female viewership increased by 6-7%. With over 820 million enthusiasts, estimates are that 2023 will see $1.5 billion in revenue. Both industries have more than 40,000 employees combined. Kids are also enjoying esports.
Children of all ages can compete for cash prizes. The youngest esports player was only six years old.
The Pandemic Lockdowns
The biggest catalyst attributable to the massive growth stemmed from the pandemic lockdowns as millions of recreational gamers played esports and gaming online.
More digitization and better internet connectivity are making online sports easier to access. That will further strengthen with 5G. Add to that the international game developers in India’s market, which account for 400 gaming companies, while there were only 76 online game startups when Covid started.
As gaming innovation gains popularity, more employment opportunities are helping to market and develop new games.
Given that in the past few years, an uptick occurred in gamers from Tier-2 and -3 Indian cities, it is no surprise the largest numbers are with mobile gaming. As skill-based tournaments and games are easier to access on mobile devices, recreational gamers, including women, enjoy new gaming hobbies that started with the lockdowns.
In Addition to Games
Gamers that enjoy esports spend their time in events and tournaments for popular games like Call of Duty, BGMI, DOTA 2, Valorant, Tekken 7, and more. Additionally, there’s an increase in multiplayer games like online battle arenas or MOBAs and first-person shooting games or FPS.
Examples include casino table games, sportsbooks, real-time strategies (RTS), and fighting match games. Hence lucrative markets have everygame sportsbook review sites to help players wager on their favorite games.
Aside from players who participate, the number of viewers is also increasing. Hence, India found that even with esports viewership, there is massive growth potential.
Another aspect of tournaments gaining popularity is The International DOTA 2 Championships. The latest edition reached a whopping $40 million in winnings with 2.7 million viewers. And yet, nothing compares to Twitch, which holds the lead.
From the third quarter of 2021, 8.5 million channels streamed monthly for 1460 billion minutes watched. Hence, esports and gaming are big hits with players and viewers.
Advertisers are Joining In
Advertisers and brands are monetizing the growing space as they collaborate on eSports tournaments and platforms. LetsGameNow started a partnership with Flipkart in 2020 for the Pro Gaming Showdown tournament.
Airtel and NODWIN Gaming collaborated to start a tour called Airtel India Esports. It gives awards and national rankings to esports players in India.
Not to be outdone, more advertisers are selling brand merchandise and beginning franchises with esports teams. Because younger millennials and Gen Z represent a large part of viewership and fans, they also make up the esports target audience.
With virtual gaming now inexpensive, more youth enjoy these new hobbies in metropolitan areas and Tier-2 and Tier-3 cities.
What Lies Ahead
With so many collaborations starting up based on the popularity of esports and gaming, international pop stars are now having “in-game concerts.”
Similar to a halftime show in the US during the Super Bowl, musical concerts play virtually during Roblox and Fortnite games. Helping advertisers reach a broader market, while the concerts are viewable for free, the user has to create a new gaming subscription account.
Gaming and esports have a massive marketing potential that VR and AR technologies affect. Expect to see more brands creating unique campaigns around these innovative digital enhancements. And with ever-evolving ways to capitalize monetarily, expect to see more players.
Esports in the Indian market is promising, and more people are finding work with gaming companies. Expect more money spent on equipment, tools, technology, and AI to create more interactive, engaging, and complex games.
Because there is so much untapped potential in the gaming and esports market, expect to see more M&A deals, gaming developers, designers, and programmers onboard. Job opportunities exist for coders, esports journalists, and influencers that can reach young audiences like teenagers.
With $1.5 billion estimated for 2023, it is no wonder everyone wants to collaborate on the sweeping success of esports and gaming. That figure will only increase as more people invest in this growing industry.