Esports & the Gaming Industry

Esports & the Gaming Industry

Blog General

Esports is very big these days, much like any sport started off small with participants not making enough money to live off. However this can basically be a big time job. So how did it all start? How popular is it? Did you know basketball or baseball athletes had second job in the early days of the respective leagues. The amount of money an athlete makes in directly proportionate to how popular the sport being played is. That makes sense, as money is derived from spectators and the amount one is willing to sponsor or advertise because of the exposure they can get due to the popularity.

What is E-Sports?

Esports or Electronic Sports simply put are video game competition. This regularly appears as composed, multiplayer computer game rivalries, especially between proficient players, exclusively or as groups. Albeit sorted out rivalries have for some time been a piece of computer game culture, these were to a great extent between novices until the late 2000s, when support by proficient gamers and spectatorship in these occasions through live gushing saw an enormous flood in popularity by the 2010s, esports was a critical factor in the computer game industry, with many game engineers effectively structuring and giving subsidizing to competitions and different occasions.

How Big is the Gaming Industry compared to other?

The gaming industry is actually larger the the movie industry. Let’s look into the movie industry, an average A-list actor makes approximately $15 million to $20 Million asper money.com. The global box office revenue in 2019 per billboard.com was $42.5 billion, this does not include home entertainment. With home entertainment this crosses a total os $140 billion. By comparison the gaming industry in 2019 per ventrubeat.com hit revenues of $152 billion. To further irritarite the size of thi lets look at one sports league.For this example we will use the NBA, now to determine revenue we cannot just take the revenue of the NBA itself, we need to access every teams revenue within the National Basketball Association. Per Investopedia.com as well as forbes.com each NBA team is worth approximately $2 Billion, with there being 30 NBA teams, that comes to a total of $60 Billion. Now lets look at it from a yearly revenue standpoint Each NBA team generates revenue of approximately $300 Million per year, therefore total and bring total revenue to about $9 billion. Now traditionally in the entertainment industry, the superior talent usually gets a good portion of revenues. Let’s look at this chart.

Industry Sample Total Revenue Highest Paid Actor/Athlete Salary Percentage of Revenue
Sports NBA – Golden State Warriors 300,000,000.00 Stephen Curry 40,000,000.00 13.33%
Movie Avengers: End Game 1,130,000,000.00 Robert Downy Jr. 75,000,000.00 6.64%

Now this is an extreme case, as Stephen Curry and Robert Down Jr. may have been the highest paid in their respective fields. No if we look at other persons we consider stars and A list an how much they make. Let’s have a look at another chat.

Industry Sample Total Revenue Highest Paid Actor/Athlete Salary Percentage of Revenue
Sports NBA – New York Knicks 300,000,000.00 Julius Randle 19,000,000.00 6.33%
Sports NFL – New England Patriots 600,000,000.00 Tom Brady 15,000,000.00 2.50%
Movie Captain Marvel 1,128,000,000.00 Brie Larson 5,000,000.00 0.44%
Movie Black Panther 1,344,000,000.00 Chadwick Boseman 2,000,000.00 0.15%

So as we can see the major talent in any industries salary can vary widely based on a number of factors, such expectation of a film, ability to negotiate a proper contract, timing of the contract. This further shows that the top brass in the respective field still gets a good amount of money.

With the gaming sitting at $152 Million, where does the money go. It simply cannot be put into such basic terms. Hopefully the graphs below explains:

Industry Total Revenue Number of Movies/games released Average Per Movie/Game Number of athletes per team, actors per movie or size of development team Average Revenue Per Person Note
Sports NBA 300 Million 15 20,000,000.00
Sports NFL 600 Million 53 11,320,754.72
Movie All of 2019 140 Billion 786 178 Million 10 17,811,704.83 ***
Gaming All of 2019 152 Billion 8,290 18 Million 2 9,167,671.89 ****

*** Assumption: Three main characters, three supporting, two minor roles and 2 as buffer

****Assumption: Assuming most big titles has more than one producer, so 2 was estimated


These average does not consider all paid personnel and are just averages to understand the context in which the highest paid persons in certain industries make or contribute to their art form.

NB – Number of games released only reflects number of games released on Steam per pcgamesn.com.

So as we can see the gaming industry makes the most money because it releases the most products but on a individual basis it is actually rank last based on our small sample size, when we compare how much one single person makes who is not the owner of the business. That being said we still have not answered the question who makes, the money, the answer is simple, the developers/producers. On average per gamefacts.gamespot.com a average video game director makes $88,0000, while top video game director, Masahiru Sakura make between $1 million to $5 million per trendcelebsnow.com. These number can easily be skewed as movies has credits of approximately 600 persons as per Stephenfollows.com, in sports, there are coaches, assistant coaches, general managers, equipment staff and in the gaming industry there are artists, designers, sound engineers, programmer, testers etc. With all this persons needed to get paid, the numbers for gaming on an individual basis seems even lower.

Is E-Sports its own Industry?

This is a solid yes, however everything is driven by popularity, that is is a game has only sold 100,000 copies chances are the E-Sports scene is not as big as a game which sold 10 million copies. That seems to be the man correlation but the E-Sports industry make its own money. Per repear.gg the top 5 biggest Esports games.

Game Number
Fortnite 78.3 million Active players
Counter Strike: Global Offensive 24 million units sold
Dota 2 1 million active players
League of Legends 100 million active users
Overwatch 50 million copies sold
PUBG 50 million copies sold

That being said this appears to be more of a symbiotic relationship, meaning the popularity in the Esports scene transfers in to game sales and new users.

How much to E-Sports players make?

The largest E-Sports prize pool game from Dota 2 whcih paid out approximately $219 million in tournament money as per hollywoodreporter.ccom. The largest single player payout in history per the guinessworldrecords.com to date is $3 million. Since my favorite game is Super Smash Bros. Let”s see how much the top players make . As of 2018 the top player made $115,650.90 per esportearnings.com. Note that Super Smash Bros. Ultimate is not even a top 10 game in terms of popularity in the Esports Scene.

What does the future hold?

The examination uncovers key patterns and innovations that will characterize the eventual fate of video gaming. Sixty-three percent of officials concur that if significant game organizations don’t offer customers cloud-based games, they will be off guard in five years. In the mean time, 70% accept video gaming organizations will circulate most Triple-A games remotely through the cloud inside five-to-ten years.

“As rivalry keeps on heightening, cloud-based spilling is ready to be the following significant video gaming disruptor. The appearance of cloud gaming, particularly when joined with the roll out of advancements, for example, 5G, speaks to something other than an open door for the business – it’s a key objective. By taking advantage of the lucky breaks to receive the most recent advancements, driving organizations can win and possibly alter the course of more slow development.”

The discoveries further demonstrate that ESports can possibly improve brand mindfulness over the business. Seventy-two percent of respondents state ESports is now making a solid commitment to the brand and picture of video gaming organizations, and 70% accept that it has the ability to attract new clients to games. Be that as it may, overview respondents are separated around whether ESports will turn into a significant wellspring of new income: 23% foresee it will contribute nothing toward industry incomes in the following five years, while 34% anticipate that it should contribute up to 10%, and 43% state it will include over 10%.

Conclusion

Esports is a big industry with a lot of money to be earned and is also fun, I can imagine how hard these gamers work to get there, but I would like to think most of it is fund for them.

 

Hope this article helps, look forward to everyone’s feedback

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