Esports: an economically viable model?

Tuesday, 5 december 2023

Video game competitions, or eSport, are increasingly popular. However, the industry struggles to generate revenue. How can it be driven towards an economically viable model?

Appearing about twenty years ago, eSport, short for electronic sport, is experiencing a growing success linked to the development of video games and the advent of high-speed internet. These video game competitions, played online or in arenas, attract an increasingly large audience on streaming platforms such as Twitch. The billion-viewer mark has already been almost reached and is expected to rise to 1.4 billion by 2025. 

However, the near absence of broadcasting rights makes esports teams heavily dependent on sponsorship, which accounts for 60 to 70% of their resources. The sector struggles to generate 1.4 billion in revenue, which contrasts with its popularity and the colossal sums collected by video game studios and traditional sports. 

In a comprehensive study, Micaella Feldstein, Tech & Data specialist at Natixis CIB, analyzes the necessary supports and resources to ensure the viability of eSport’s economic model. 

The complete study HERE

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