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Despite the world economy being disrupted by the widespread of the Coronavirus, the esports industry is still holding up its position. As people have started to practice social distancing and isolate themselves from others, esports offered a pleasant distraction. Although these practices have reduced consumer and business activity in many parts of the world, it has also provided a way to kill people’s boredom and to improve their skills.

Gaming business model:

People looking for social interaction have started to connect with their friends on social media and have started to play with them. The initial statistics data show an enormous increase in the playtime of the users and a boost in the sales after the announcement of lockdown. The revenue of the esports market is estimated to surpass $159 billion in 2020. This is four times more than the revenue of the industry in the previous year. The Asia-Pacific region holds the majority of market share by value as it holds more than 50% of the total value. North America holds the second position, accounting for more than a quarter of the industry’s total revenue. 

Consumer spending on various elements drives almost the entire income of the industry. The constant improvements in the business model have caused a shift in the business model from single-unit to repeated revenue from a particular group of users. As a result, entrepreneurs have started esports tournament website provider teams to focus on increasing the elements that constitute user engagement. The adoption of an in-game monetization strategy worked effectively for the users.

These business models ultimately helped to improve hardware performance, bandwidth, and mobile internet speeds. The developers have also started to include additional downloadable content in the game. This came as a jackpot for the users as it helped to enhance the user experience and offer them more entertainment. This in-game content includes expansion packs, new features, equipment, and character. Smartphones played an integral part in improving the industry’s revenue as more than 48% of the industry’s revenue comes from mobile gaming. Another significant contributor is the multiplayer video game competitions as this sector is estimated to fetch over $1 billion in 2020. The revenue generated by this sector can be segmented into several fragments, such as advertising and broadcasting. Although the scope of esports tournaments looks small, they contribute significantly to the overall revenue of the industry.

How COVID-19 boosted user engagement:

The gaming industry is putting its full efforts to support the community’s initiative as they try to mitigate the effects of the Coronavirus. These communities have pledged millions of dollars to help the needy and researchers to understand the structure of the virus better. Numerous medical workers and employees have benefitted from this contribution. The consequences of COVID-19 on society had pushed several people to take up esports. Reports indicate that there has been a massive increase in esports users as it is an engaging activity that people can easily do at home. 

The number of downloads is off the chart as people in isolation are looking for various forms of entertainment. Several providers have announced the waiver of download fees on their game, and some have started to offer their games for free. Verizon also reported a similar surge in the user engagement as the number of users was more than 75% during peak hours, which is relatively more than three times of user engagement on these platforms. Streamlabs have released their statistics that indicate the increase in the number of users on gaming platforms like Twitch, YouTube Gaming, and Facebook Gaming. It is estimated that people spend more than 20% of their usual time on esports. 


Most esports events that were scheduled to take place in arenas with thousands of audiences have been either canceled or postponed indefinitely. But this didn’t stop the esports industry from conducting their tournaments as they continue that games online. Esports fans lined up on the streaming platforms to witness their favorite players in action. Esports has been able to continue despite the pandemic, while all the traditional sports have been canceled or postponed indefinitely. Close to 75% of the revenue in esports tournaments comes from advertising and broadcasting, but these deals were made before the outbreak of the pandemic. As more restrictions are imposed on people to restrict their movement and avoiding social gatherings, this will not pose a major threat to the esports industry.  

Bottom line:

Although the esports tournaments are held online, the coronavirus outbreak has stalled the development of new games. But entrepreneurs can use this an opportunity to capture the market by approaching an esports tournament website development company to launch their custom-made platform. People’s greater interest in esports is at an accelerated pace as people can play heavy graphic games without expensive hardware because o the sophisticated and efficient cloud-based platforms such as Google Stadia. These recent developments will push the revenue of esports platforms towards the mainstream market.


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