"re:Think Games — May 8, 20 Esports Industry Observations"

re:Think Games — May 8, 20 Esports Industry Observations

I had written that the esports industry is like track and field. It is not made of one game, but a multitude of games. From my perspective three macro-trends combined to elevate competitive video gaming into the billion-dollar industry that it is today. First, fast global, inexpensive internet allowed players to compete with each other. Second, streaming enabled an audience of people to tune in and watch their favorite players creating a monetization stream that has expanded every year. Finally, publishers realized the potential of team-based games and found ways to cultivate those communities of gamers while creating significant monetary prize pools for the top players, effectively professionalizing the competitions.

I think of this as:

1. Global access
2. Global broadcast
3. Global championships.

Stream revenue and prize pools created the esports industry that we know today.

So what are the games that makeup Esports? Today, May 8, 2020, I was able to find at least 5 lists of “top esports” games. All ranked by different criteria. Some picked prize money. Some picked audience. Some picked audience size (viewership). With that in mind, there are three common criteria people use to pick games:

1. Total prize winnings.
2. Total player base.
3. Total audience size.

You can also select the games by the platform as well. (PC, Console, Mobile).

But let’s look 10 top games that are associated with Esports

1. League of Legends
2. Fortnite
3. DOTA 2
4. CS Go
5. Call of Duty
6. Overwatch
7. PubG
8. Rocket League
9. Smash Brothers
10. Hearthstone

This list is absolutely not exhaustive. In fact, if you know anything about esports I would expect you to argue with it.

However, this list can serve as a starting point to explore the industry, how it works, and what business opportunities lie within it. This list includes games that are available only on a single platform (PC or console, or even a single console) and games that are available on everything. If I missed a game you think should be on the list, let me know, and why. If you think something is on this list and does not belong, again I would like to know why?

I chose this list because it is representative enough for us to start digging in and seeing how the industry works. The list is not particularly important, we just need an anchor to explore the landscape of the industry and start to answer important questions like, “how do professional teams work?” Who is investing in teams? What is the relationship between the game, the publisher of the game, and the professional communities? How do tournaments fit into this? And the all too famous, “follow the money?” What are the economics of esports? How does all this work?