eSports Is Poised for Long-Term Growth
eSports market might reach $2.4 billion by 2020
Market research firm Newzoo thinks that competitive gaming is growing its share in terms of overall game time. Players and spectators are attracted to eSports because it involves team play, live streaming, and rankings. Newzoo’s report said, “On mobile, this is particularly true in China and the rest of Asia but also in the West, where competitive mobile titles are increasingly in the top grossing charts. This has renewed confidence among the biggest Chinese publishers to bring their games to the West.”
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According to Newzoo, the global eSports market might reach the billion-dollar mark in the next two years. By the end of 2020, the eSports space could generate between $1.5 billion and $2.4 billion. The key drivers that will impact the success of eSports leagues globally include regulations, profitability, growth in content rights, and advertising.
IHS Markit has a more conservative revenue for the eSports business, as you can see in the above graph.
Traditional sports valued between $130 billion and $150 billion
The gaming market (primarily software) was previously compared to revenue generated through ticket sales. The global gaming market is expected to be three times bigger than the ticket sales generated in the US (SPY) this year. Since the gaming market is growing at a tremendous pace, it can now be compared with traditional sports.
The global sports business is estimated to be between $130 billion and $150 billion including sponsorships, ticketing, media rights, and merchandise. Newzoo expects software gaming revenue to overtake the revenue generated from traditional sports by 2021.