The e-sports industry, also known as competitive video gaming, is experiencing steady growth due to advancements in technology, the rise of online streaming platforms and a growing fan base. Increasing sponsorships from a wide range of industries and growing prize pools are key factors driving the growth of the industry. Companies such as Coca-Cola and Intel sponsor e-sports events and tournaments, with the Fortnite World Cup boasting the largest prize pool in e-sports history at $30m. Investments and acquisitions in the industry from venture capitalists and traditional sports team owners, as well as gaming companies such as Blizzard and Electronic Arts, are also contributing to the industry’s growth.
E-sports industry sees steady growth with increasing sponsorships and prize pools
Introduction
The e-sports industry, also known as competitive video gaming, has been steadily growing over the past decade. With advancements in technology, the rise of online streaming platforms, and a growing fan base, e-sports has become a lucrative industry that is attracting more and more investors.
Increasing Sponsorships
One of the key factors driving the growth of the e-sports industry is the increasing number of sponsorships. Companies across a wide range of industries are recognizing the potential of e-sports to reach a younger demographic and are investing in different teams, players and tournaments.
For example, Coca-Cola has been a major sponsor of the League of Legends World Championship since 2014, and the company also sponsors e-sports tournaments in other regions, including Mexico and Brazil. Similarly, Intel has been a sponsor of e-sports events for over a decade and is now the official technology partner of the ESL (Electronic Sports League), one of the largest e-sports leagues in the world.
Growing Prize Pools
Another factor contributing to the growth of the e-sports industry is the increasing prize pools. As the popularity of e-sports grows, so too does the amount of money that is being offered as prize money at gaming tournaments.
In 2019, the Fortnite World Cup had a total prize pool of $30 million, making it the largest prize pool in e-sports history. Other popular games, such as Dota 2 and League of Legends, regularly offer multi-million dollar prize pools at their major tournaments.
Investments and Acquisitions
Alongside increasing sponsorships and prize pools, there has also been a surge of investments and acquisitions in the e-sports industry in recent years. Venture capitalists and traditional sports team owners are investing in e-sports teams and leagues, betting on the growth of the industry.
Similarly, major gaming companies, such as Blizzard and Electronic Arts, have acquired e-sports organizations and invested heavily in e-sports-based content and events.
Conclusion
The e-sports industry is growing at a steady pace, with increasing sponsorships, prize pools, and investments. While there are still challenges to overcome, such as governance and player welfare issues, the continued growth of the industry is sure to attract even more attention and investment over the coming years.