eSports Roundup: Prize Purse Fallacy, Pro Dreams, Tech Boom

Record DOTA2 Prize Pool, Glosses over Issues

This week’s DOTA2 International event, with its record prize purse of $18 million, has caught the attention of media outlets as a testimony to “how far eSports has come.” Valve, the developer of DOTA2, is undoubtedly enjoying the publicity stemming from the record breaking prize pool. However, despite the eye-popping numbers, several major issues still exist in the DOTA2 pro scene and across the eSports landscape as a whole.

Publishers, like Valve, still treat eSports like a marketing tool instead of a money maker; a fact, which limits revenue flow into the scene. Reliable player compensation is also either non-existent or bare bones, leading to a scramble to compete in a series of year-round tournaments, just to pay the bills. The inevitable no-shows and drop-outs, resulting from overly aggressive scheduling by teams, continue to plague pro events across the world. Tournament organizers for some eSports titles have banded together to introduce disincentives but punitive measures don’t address the crux of the matter: lack of a financial stability.

The way forward is clear — organized eSport league bodies featuring minimum player salaries, formal scheduling and guaranteed programming (broadcasts) — even if the immediate payoff is not. Publishers of popular eSports titles must contend with the often contradictory interests of their primary line of business, developing games, and a thriving professional gaming scene. The question is, how well can companies like Valve serve two masters, and for how long?

Clearer Path to Pro Career, Desperately Needed

A recent Bloomberg Business article detailing the ‘rags to riches’ tale of Sumail Hassan, also highlights the precarious nature of professional gaming. Today, not only is the concept of amateurism missing but also a system of amateur player promotion. As portrayed in the Bloomberg piece, teenagers like Mr. Hassan are cast straight into the grips of a professional eSports; with the prospect of receiving a paycheck, to pursue their passion, clouding a reality fraught with significant pressures and responsibilities.

The truth that some playing careers thrive while others fizzle is not cause for concern. However, the fact that there is no system of amateur promotion is alarming. Technical proficiency at gameplay is only one of the metrics for success as a pro, the others lie along lines of mental and emotional maturity. eSports leagues need amateurism and early stage player development to discriminate between raw talent and talent ready to go pro.

The Beginning of an eSports Tech Boom

The last three months has witnessed a wave of technology companies making eSports-related announcements, the latest of which is a partnership between Stark Gaming and VMS Software. The opportunity for tech companies: provide software and services to accelerate the growing eSports experience. An increasing number of distribution platforms, e.g. Twitch, YouTube Gaming, Hitbox.tv, is increasing demand for better tools for streaming, content production and the like. Additionally, the emerging theme of “digital athletics” means opportunity to enhance performance for players, both professional and amateur.

eSports Group monitors hundreds of trending signals to keep you “in the game” of the global eSports industry.  Join our free mailing list and stay connected to the business side of eSports – http://tinyletter.com/afletcher


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

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