The competitive gene that has been imprinted in our DNA has led to the development of sports, which are physical activities in which many participants must complete a task in order to achieve a victory, something significant and iconic.
The practice of these activities became increasingly complex over time, and organized competitions evolved to the point that they became a phenomenon, nearly necessary in today’s society.
However, things have changed in recent years, and technology has managed to extend its maximal exponent to sports tournaments; today we can not only participate in them, but also watch them, follow them, and even bet on them online, all from the comfort of our own homes. The evolution of sports and their fans is remarkable.
The impressive growth of Esports
A new athletic discipline for a new generation: the bet on Esports has won the marketplace and established itself as a global phenomenon with millennials as its target demographic. A massive network of teams has grown over the last decade, bringing together professional gamers and attracting millions of viewers via live or streaming sites such as YouTube, Facebook Gaming, and Twitch.
The trend represents a massive and constantly expanding market opportunity similar to how consistent online betting Singapore sites were booming for the past years. In 2017, the overall revenue earned by this multinational phenomenon climbed by 41% to 696 million US dollars.
However, the expansion isn’t going to stop there. Currently, the market is underutilized. If we compare the Esports industry to the NFL, it makes only $4 per spectator per year, but the NFL generates $50.
This means that, if properly managed, this industry has the potential to reshape both the world of sport and the worlds of media, advertising, and entertainment. The first bases of this new booming economic structure have been significantly utilized by esports teams.
Is Esports worth the investment?
First and foremost, there is always a counter-hype to anything that is hyped, whether it be Esports or space travel. And there’s a lot of counter-hype in the Esports bubble, in my opinion.
However, some of it is perfectly fair. Many investors are concerned that the value of Esports companies exceeds their revenues. Forbes said last year that the top ten Esports companies had values that were nine times higher than their sales. Even though it is average for tech companies, this is a relatively high figure for the gaming industry.
Others refer to the average age of Esports fans. Many people are too young to make stock investments. With a minimum investment age of 18 or 19, a substantial chunk of the Esports audience is excluded.
With these two criteria in mind, I’d suggest there are some bubbles in the Esports market. I don’t believe the market will implode in its entirety, but I do believe there will be a market correction in the near future. It’s common for nascent sectors to have some turbulence, especially when their valuations are high.
Everyone should consider the long-term rather than the short-term while making an investment. If you’re going to invest in FaZe or any other Esports firm, make sure it’s a good one. Consider whether you want this company in your portfolio in 15, 20, or even 30 years. If you answered yes, you should invest in stocks and remain invested for the long term.
The future of Esports
This natural progression brought with it new methodologies, which, when combined with a shift in young people’s culture, resulted in Esports’ massive growth in recent years.
Online games, particularly Esports, have undoubtedly transformed today’s world, with televised tournaments attracting viewers from all over the world, professional players committed solely to the sport, and prize pools in the millions of dollars, and all indications suggest that they are here to stay. Even the potential of competing in the Olympic games in future editions is being considered.
The video game industry, which is so unique and often overlooked, is exploding. The democratization of the discipline with an increasing number of players and professional teams, unprecedented crowds at competitions, and the emergence of a new economy through tournaments, media coverage, and sponsorship are all that helped it boom.
Even Google has begun with Stadia, their streaming video gaming platform. The internet behemoth is making a splash in the realm of e-sport, bringing with it the promise of new frontiers in the form of the cloud.
In summary, we are witnessing the rapid rise of a new discipline and market in less than 20 years, and it does not appear to be slowing down.