Esports, the competitive video gaming industry, is projected to be worth over $1 billion by 2021. The esports business model consists of two main categories: game publishers and esports organizations. Game publishers create and sell video games that attract a competitive scene, generating money through one-time purchase fees, in-game purchases, and sponsorships. Esports organizations are responsible for organizing and promoting esports tournaments and events, earning revenue through sponsorships, ticket sales, and merchandise sales. The collaboration between these two categories creates a profitable esports industry.

Breaking Down the Esports Business Model and Revenue Streams

Esports, which stands for “electronic sports”, is a rapidly growing industry that involves competitive video gaming. It’s estimated that by 2021, the esports industry will generate over $1 billion in revenue. But how does the business model of esports work, and where do these revenue streams come from? In this article, we’ll break down the esports business model and revenue streams.

Business Model of Esports

The business model of esports can be broken down into two main categories: game publishers and esports organizations. Game publishers are the companies that create and sell video games, while esports organizations are the groups responsible for organizing and promoting esports tournaments and events. Game publishers and esports organizations work together to create a profitable esports industry.

Game Publishers

Game publishers make money by selling their video games to consumers. In the case of esports, game publishers create games that are popular enough to attract a competitive scene. These games are typically free-to-play or require a one-time purchase fee. Game publishers also make money through in-game purchases and sponsorships.

Esports Organizations