Here is cutting edge insight on the latest and greatest news from across the eSports industry. Stay tuned for more updates that help you stay atop of the trends and shifts that are shaping the marketplace:
Bridging the generational gap
The verdict is in: eSports is a leading platform for an entire generation. While competitive gaming is a viable media experience, can decision makers outside the space grasp the billion dollar implications of this generational shift? Specifically, can non-endemic stakeholders outside the eSports world successfully understand and connect with the culture? Early movers like Coke, Red Bull, Logitech, and Razer have taken the lead, but where does that leave those who will follow suite? Early signs of outside media convergence are beginning to appear. However, consolidation and acquisition only scratch the surface. To explore the full gamut, a concise evaluation of the opportunities, risks and current models related to this rapidly emerging opportunity must be executed.
Player/talent development in the pro scene must occur
The growth of eSports as a platform (see above) is driven, in a nutshell, by the quality of competitive play. Similar to how professional sports leagues must churn out the highest caliber of organization, team and individual player talent; eSports leagues must do the same. The path to become a pro gamer must be better defined and developed to allow the absolute best talent to emerge. Currently, the upfront investment outweighs the likely payoff; which isn’t viewed as a pressing issue today, but bodes ominously as the eSports industry grows. As is the case in traditional sports, the notion of “star power” will play an critical role in the growth of eSports leagues. Marketers, advertisers and companies alike will benefit from being able to attach to high performing players. Meaning, the career prospects in pro gaming must undergo a complete upgrade.
An entrepreneur’s dilemma
Investors and entrepreneur’s, alike, are taking notice of the eSports phenomenon. The consensus is there is very real potential in capitalizing on this “next big thing.” The reality is eSports is a largely nebulous term, which encapsulates the global competitive gaming community, in totality. There is a dizzying array of game titles, leagues, and organizations that comprise this global community. This leaves potential entrepreneurs, without a significant background in gaming, left out of the picture. Specifically there is no entry point or accelerator for seeding entrepreneurial activity; a reality that casts a shadow over the almost limitless potential for the eSports space.
Gambling and eSports: Where is the line?
With another betting company’s foray into the eSports domain, it’s appropriate to question how various leagues will handle similar business relationships. Riot Games’ League of Legends League Championship Series (LCS), arguably the most successful variety, has made it clear gambling affiliated companies are not permitted to sponsor participating teams:
3.7.1 Gambling Websites: defined as any website that aids or abets the wagering of funds on a sporting/esporting event and/or allows for the wagering of funds in casino games including poker
However, the legal waters are not as translucent with regards to ownership. In other words, it’s possible for betting companies to buy or create a team as long as the team doesn’t bear official name affiliation with the business; a loophole that raises eyebrows. If there is a conflict of interest from a sponsorship perspective, the same should apply for ownership. Riot is not explicit on their general definition of a conflict of interest, only who is not permitted to participate as a sponsor. If other leagues find success, while avoiding scandal, perhaps Riot will change their tune.
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Alex Fletcher is founder & president at eSports Group, where he helps customers meet their eSports advisory & consulting needs. When Alex isn’t glued to a screen, he spends time with his wife, their two dogs, and pretends to learn Polish. Feel free to stalk him on Twitter – @FletchUnleashed