How Much Money Can You Make From Esports?
Many people are wondering how much money they can make from playing video games professionally. The answer may surprise you – you can make a lot of money from playing video games professionally!
The Rise of Esports
Esports has been on the rise in recent years with more and more people getting into professional gaming. With the popularity of games like Fortnite and Overwatch, it’s no wonder that people are interested in making a career out of playing video games. So, how much money can you actually make from esports?
What is esports?
Esports, also known as competitive video gaming, professional video gaming, or electronic sports, is a form of competition that is facilitated by electronic systems, particularly video games; the input of players and teams as well as the output of the esports system is mediated by human-computer interfaces. Esports often takes the form of organized multiplayer video game competitions, particularly between professional players. Although organized online and offline competitions have long been a part ofvideo game culture, these were largely between amateurs until the late 2000s when participation by professional gamers and spectatorship in these events saw a large surge in popularity.
The history of esports
The history of esports is relatively short, but it is a rapidly growing industry with a bright future. Esports first began to gain popularity in the early 2000s with the rise of online multiplayer games and the ability for players to connect and compete with each other from anywhere in the world.
The first major esports tournament was held in 2017 and featured the game StarCraft. Since then, esports has grown to include a variety of different games and tournaments with massive prize pools. The industry is expected to continue to grow at a rapid pace in the coming years.
As more people tune in to watch esports, there is an increasing demand for high-quality content and analysis. This has created a new opportunity for those with a passion for gaming and a desire to make a living from it. Esports offers many different ways to make money, from playing in tournaments to streaming games online or working as part of the support staff for a professional team.
Whether you’re looking to make a few extra dollars on the side or you’re aiming to become a professional player, there’s certainly money to be made in esports.
The current state of esports
Sporting events around the world have been cancelled or postponed due to the COVID-19 pandemic, but one type of competition has not only continued unabated, but is actually thriving – esports.
While the global pandemic has caused immense hardship for many people and industries, it has also created a perfect storm for the esports industry. With traditional sports sidelined, people are turning to esports in droves to get their fix of competitive action. And with so many people now working from home, there is more time than ever to watch esports tournaments and tune in to livestreams of gaming sessions.
As a result of this perfect storm, the esports industry is booming. In 2019, the global esports economy was worth $US655 million ($896 million), and it is expected to explode to $US1.1 billion by 2023. This rapid growth has seen ESPN launch an Esports vertical on its website, while traditional sports networks such as NBC Sports and TNT are now broadcasting professional Overwatch and Call of Duty competitions.
With so much money pouring into the industry, it’s no surprise that professional gaming is now a viable career option for many people. The top players in the world can earn millions of dollars per year from prize money, sponsorships and streaming deals. And as the industry continues to grow, these sums are only going to increase.
So if you’re thinking about turning your gaming hobby into a full-time job, here’s everything you need to know about making money from esports.
The Business of Esports
The global esports market is estimated to be worth around $696 million in 2017, and this is set to grow to $1.5 billion by 2020. That’s a huge amount of money, and it’s no surprise that more and more people are getting involved in esports. But how much money can you actually make from esports? Let’s take a look.
How much money is in esports?
The business of esports is booming.
In 2019, the global esports economy was valued at $865 million, and it is expected to reach $1.79 billion by 2022, according to a report by Newzoo. Of that, $567 million will come from media rights and sponsorship deals, while $174 million will come from game publishers and $353 million will come from advertising, merchandise, and ticket sales.
With so much money flowing into the esports industry, it’s no surprise that many people are wondering if they can make a career out of playing video games.
The answer is yes – but it’s not easy.
There are a handful of professional gamers who are making millions of dollars a year from tournament winnings, sponsorship deals, and streaming contracts. But for every one of those gamers, there are thousands more who are trying to make it big but falling short.
To be a successful professional gamer, you need to be extremely talented at the game you’re playing and you need to have the drive to win. You also need to be marketable – meaning you need to be good at promoting yourself and building up a following. And finally, you need luck – because even if you have all of the other ingredients, if you don’t get lucky with the right opportunities opening up at the right time, you’re not going to make it big in esports.
How do people make money from esports?
Professionals in the esports industry can make money from a variety of sources, including winnings, sponsorships, salaries, and prize money. Players who compete in tournaments can win cash prizes, and the top players can earn millions of dollars per year.
Sponsorships are another way that professionals in the esports industry can make money. Many companies sponsor teams or players, and these sponsorships can be worth millions of dollars per year. In addition to cash prizes and sponsorships, some people in the esports industry can make money from salaries and prize money.
What are the risks and rewards of investing in esports?
The esports industry is still in its infancy, and as such, it is full of both opportunity and risk. On the one hand, the industry is growing at an incredible rate and shows no signs of slowing down. On the other hand, the lack of regulation and standardization means that there are no guarantees in terms of investment.
Those who are willing to take on the risk may be rewarded handsomely if the industry continues to grow as expected. However, those who invest without doing their homework may end up losing everything.
Here are some of the risks and rewards to consider before investing in esports:
Risks:
1. Lack of Regulation: The esports industry is currently unregulated, which means that there are no rules or protections in place for investors. This lack of regulation also makes it difficult to track where money is being spent and how it is being used, which could lead to scams or fraud.
2. Lack of Standardization: Unlike traditional sports, there is no one governing body for esports. This lack of standardization makes it difficult to know which events are legitimate and which ones are not. It also makes it hard to keep track of player statistics and records.
3. Volatile Nature of Investments: The esports industry is still young and immature, which means that investments can be volatile. Values can rise and fall rapidly, and there is always the possibility that an investment could become worthless overnight.
Rewards:
1) Low Barrier to Entry: The relatively low cost of entry means that anyone can get involved in esports without breaking the bank. This low barrier to entry also makes it easier for new talent to emerge and for small startups to find a foothold in the industry.
2) High Growth Potential: The incredible growth rates seen in recent years suggest that the esports industry still has a lot of room to grow. Those who get involved early could see their investments skyrocket in value as the industry continues to expand. 3) Social Impact: Esports has the potential to make a positive social impact by providing a platform for underrepresented groups such as women and minorities
The Future of Esports
The potential of esports
The potential of esports is sky-high. A recent report valued the global esports economy at $696 million in 2017, and predicted it would grow to $1.5 billion by 2020. That same report said that the number of esports fans will grow from 385 million in 2017 to 589 million by 2020.
There are a number of factors driving this growth. The first is simply that more people are playing video games than ever before. The second is that the games themselves are becoming more complex and require more skill to play them at a high level. Finally, there’s the fact that people are increasingly watching others play video games online, whether it’s through Twitch or YouTube.
This growth is translating into real money for those who are able to make a career out of playing video games professionally. The top players in the world can earn millions of dollars per year from prize money, sponsorships, and streaming deals. And as the industry continues to grow, these numbers are only going to rise.
The challenges facing esports
The future of esports is far from certain. Though the industry has seen incredible growth in recent years, it faces a number of challenges that could limit its potential.
The first challenge is its reliance on popularity. Esports relies on spectators to generate revenue, and while there are a lot of people who watch esports, the audience is still relatively small compared to other sports. This makes it difficult for esports to generate the same kind of revenue as traditional sports.
Another challenge facing esports is regulation. Because esports is still a relatively new industry, there are not yet any standardized rules or regulating bodies. This lack of regulation can create problems, such as match-fixing, which can tarnish the reputation of the sport and make it difficult to attract new fans and participants.
Finally, esports also faces competition from traditional sports. As traditional sports leagues have begun to recognize the popularity of esports, they have started to invest in their own esports leagues and tournaments. This competition could limit the growth of esports, as traditional sports leagues are better positioned to generate revenue and attract viewers.
The future of esports
The global esports market is expected to reach $1.65 billion by 2025, up from $0.96 billion in 2019, according to a report by American research firm Newzoo. Revenue will be generated through a combination of sponsorship, advertising, merchandise, ticket sales andpublishing rights fees.
The majority of revenue will come from sponsorships, which are expected to grow at a compound annual growth rate (CAGR) of 14.6% over the next six years to reach $822 million by 2025.
Advertising is also expected to grow significantly, albeit at a slower CAGR of 11.7%. This is due to an increase in the number of brands targeting esports fans as well as the amount of money being spent on advertising by these brands. By 2025, advertising is expected to generate $647 million in revenue.
Other sources of revenue include ticket sales, which are expected to grow at a CAGR of 11.4% to reach $274 million by 2025; merchandise sales, which are expected to grow at a CAGR of 10.9% to reach $226 million; and publishing rights fees, which are expected to grow at a CAGR of 9.6% to reach $196 million.
