Should I Invest In Esports?

Esports has been on the rise for the past few years, with more and more people getting involved. But is it worth investing in? Let’s take a look at the pros and cons.

Introduction

The esports industry is still in its early stages, but it is growing quickly. Many people are wondering if they should invest in esports.

Here are some things to consider before making an investment:

1. The size of the market. Esports is a global industry with a large potential market. According to a report from Goldman Sachs, the total global esports market is expected to grow to $2.96 billion by 2022.

2. The growth of the industry. The esports industry is growing quickly. According to the same Goldman Sachs report, the global esports market is expected to grow at a compound annual growth rate (CAGR) of 22% from 2017 to 2022.

3. The potential return on investment (ROI).Investing in esports can be risky, but there is also the potential for a high ROI. For example, 21st Century Fox invested $150 million in an esports organization called Echo Fox in 2016, and their investment was valued at nearly $1 billion just two years later.

4. The risks involved. As with any investment, there are risks involved in investing in esports. The industry is still relatively young and unpredictable, and there is always the chance that it could fail to live up to its potential.

5. Your personal risk tolerance. Before making any investment, you should always consider your personal risk tolerance. If you are not comfortable with taking on a lot of risk, then investing in esports may not be right for you

The History of Esports

The History of Esports is long and detailed. Esports began as a grassroots movement in the early 1990s with the rise of competitive gaming. The first esports tournament took place in October 1972 at Stanford University. Today, esports is a global phenomenon with tournaments taking place all over the world.

The Early Days

The origins of esports date back to 1972, when a Spacewar tournament was held at Stanford University for a grand prize of a year’s subscription to Rolling Stone magazine. However, it wasn’t until the late 1990s that esports began to emerge as a viable and popular industry. This was due in large part to the proliferation of broadband internet connections, which allowed gamers to connect and compete with one another online. The late 1990s also saw the launch of popular esports franchises such as Quake and Counter-Strike.

The early 2000s were something of a golden age for esports, with large tournaments and competitions being held around the world. This was also the period when the first professional esports teams and players began to emerge. Some of the most popular games during this time included Warcraft III, Halo 2 and Counter-Strike: Source.

The global esports industry has continued to grow rapidly in recent years, with more tournaments, teams and players emerging all over the world. The most popular games in the industry today include League of Legends, Dota 2, Overwatch and Counter-Strike: Global Offensive.

The Rise of Competitive Gaming

Though organized esports competitions have existed in some form since the 1970s, it wasn’t until the 1990s that they began to gain mainstream traction. The advent of broadband internet connections and powerful home gaming consoles made it possible for players to connect and compete with one another from anywhere in the world. This technological breakthrough allowed for the rise of professional gaming leagues, tournaments and championship series, laying the foundation for the modern esports industry.

The first major esports tournament was held in 1980 at Stanford University, featuring a space-themed video game called “Starfighter”. The event was organized by student gamers and attracted over 100 participants from across North America. While small tournaments and competitions were held sporadically throughout the next decade, it wasn’t until the 1990s that esports began to garner significant attention from outside of the gaming community.

In 1991, Japanese game developer Nintendo hosted the “World Championships” tournament in neighborhoods across North America. The competition featured Nintendo’s popular “Super Mario Bros. 3” game and offered a $10,000 grand prize – a considerable sum at the time. The event was a massive success, with over 50,000 people participating in what is widely considered to be the first large-scale competitive gaming tournament.

Throughout the 1990s, competitive gaming continued to grow in popularity, with tournaments being held for popular games such as “Quake”, “StarCraft” and “Counter-Strike”. These early tournaments laid the foundation for today’s professional esports leagues, which feature some of the most skilled gamers in the world competing for millions of dollars in prize money.

The Modern Era

The modern era of esports is defined by the release of MOBAs, multiplayer online battle arena games. The first popular MOBA was Defense of the Ancients (DotA), a mod for Blizzard’s Warcraft III. DotA quickly became a sensation, and its gameplay inspired a new genre of games. The most popular MOBA today is League of Legends (LoL), which was released in 2009. Other popular MOBAs include Heroes of the Storm, Dota 2, and Smite.

The Business of Esports

The esports industry is growing at a rapid pace. More and more people are becoming interested in competitive gaming and the business of esports. But what does this mean for investors? Should you invest in esports? Let’s take a look at the pros and cons.

The Global Esports Market

The global esports market is growing rapidly, with revenues reaching $696 million in 2017 and projected to reach $1.5 billion by 2020.1 The majority of this revenue comes from sponsorships and advertising, but Media Rights and Player Salaries are also significant sources of revenue for the industry.

With over 2.2 billion gamers worldwide,2 there is a large potential audience for esports. However, the current esports audience is mostly male (70%) and between the ages of 21-35 (70%).3

There are a variety of games played at a professional level, but the most popular games in terms of viewership are currently League of Legends, Dota 2, Counter-Strike: Global Offensive, and Overwatch.4

While the esports industry is still in its early stages, it has great potential for growth. If you’re considering investing in esports, it’s important to do your research and consult with experts to understand the risks and potential rewards involved.

The Growth of Esports

The global esports market is growing rapidly. In 2019, the total value of the industry is estimated to be $905 million USD, and it is expected to grow to $1.65 billion by 2023. This growth is being driven by a number of factors, including an increase in the number of people playing esports, the popularity of live streaming platforms such as Twitch, and the rise of competitive mobile gaming.

As the industry grows, so too does the opportunity for investment. Esports teams and leagues are attracting a lot of interest from traditional sports investors, as well as venture capitalists and private equity firms. And with the recent launch of dedicated esports investment funds, it’s easier than ever for everyday investors to get involved.

So should you invest in esports? Ultimately, that decision comes down to your personal financial goals and risk tolerance. But if you’re looking for an industry with high potential growth, esports could be a good option for you.

The Future of Esports

The futurist in me likes to believe that the future of esports is bright. I see a future where more people are playing video games, more people are watching other people play video games and more companies are investing in the industry. I believe that the popularity of esports will continue to grow and that it will eventually become a multi-billion dollar industry.

I think that there is a real possibility that traditional sports leagues will start to invest in esports. I could see the NBA creating an esports league for NBA 2K or the NFL partnering with EA to create an esports league for Madden. I think that these leagues would be extremely popular and would help to legitimize esports.

I also believe that we will see more universities start to offer scholarships for esports athletes. I think that this will happen as universities start to realize the popularity of esports and the potential for revenue generation. I think that we will also see more high schools start to offer esports programs.

I think that the future of esports is bright and I am excited to see what the industry will look like in 5 years, 10 years, or even 20 years from now.

Why Invest in Esports?

Esports is a form of sport competition using video games. Esports also refers to the professional level of gaming in tournaments or leagues. The most common video games in esports are first-person shooters (FPS), MOBAs, real-time strategy (RTS), and fighting games. Esports began in the 1970s, with games like Space Invaders and Pac-Man.

The Benefits of Esports

The esports industry is still in its early stages, but it is already showing tremendous potential. Some of the benefits of investing in esports include:

1. Rapid growth. The global esports market is expected to grow from $696 million in 2017 to $1.5 billion by 2020, according to Newzoo. This represents a compound annual growth rate (CAGR) of 38%.

2. A young and engaged audience. Esports fans are typically young (18-34 years old) and male (70%). They are also highly engaged, with a majority watching esports several times a week.

3. Increasing popularity. Esports is becoming increasingly popular, with both viewers and participants. The number of people who watch or play esports is expected to reach nearly 600 million by 2020.

4. Big sponsorships and prize pools.Sponsorships and prize pools are big in esports. For example, the prize pool for the 2017 International Dota 2 Championship was over $24 million, while Intel Extreme Masters Katowice had a prize pool of over $500,000.

5. A growing number of investors. Investors are taking notice of the esports industry’s potential and are starting to put money into it. For example, investment firm Goldman Sachs has invested in an esports team, while venture capitalists have invested over $1 billion into esports-related companies since 2015.

The Risks of Esports

The risks of investing in esports are multifaceted and complex. These include, but are not limited to: the potential for players to be injured or experience health problems as a result of playing too much, the volatile and ever-changing landscape of the industry, and the pure financial risk that comes with any investment.

Players in esports are often signed to contracts that have performance-based clauses. This means that if a player underperforms or is unable to play due to injury, the organization they are signed to could terminate their contract. This could lead to a loss of income for the player and make it difficult for them to find another team willing to take them on.

The industry of esports is still in its infancy, which means that it is constantly changing. New games are released, new organizations are formed, and new sponsorships are agreed upon. This can make it difficult to keep up with the latest developments, which can in turn lead to missed opportunities or bad investment decisions.

Finally, all investments come with a certain amount of financial risk. With esports being a relatively new industry, there is a lot of uncertainty surrounding its future. Will it continue to grow? Will more traditional sports fans start watching? Will sponsors continue to invest? Only time will tell.

How to Invest in Esports

The Different Ways to Invest

Esports offers a few different ways to invest. The most common is throught ownership of an esports organization, but there are also opportunities to invest in esports facilities, events, and even in individual players.

Ownership of an esports organization is the most common form of investment in esports. Investors in these organizations provide the capital necessary to operate the team, covering expenses such as player salaries, tournament entry fees, and coaching staff salaries. These investors also typically own the organization’s branding and intellectual property.

Esports facilities are another way to invest in the industry. These are purpose-built venues used for training, competition, and broadcasting of esports events. They typically include state-of-the-art equipment and amenities, and can be expensive to construct and operate.

Investing in individual players is a more speculative form of investment, as player careers can be short-lived due to injuries or other factors. However, some players have been able to build long careers in esports, and those that achieve success can command high salaries and sponsorship deals.

The Best Esports Stocks to Buy

The best esports stocks to buy offer investors significant exposure to one of the hottest trends in entertainment.

With the global esports industry expected to grow from $1.1 billion in 2019 to $1.8 billion by 2022, according to market research firm Newzoo, there’s no shortage of opportunity for investors looking to cash in on the craze.

And with big names like Walt Disney (DIS) and Comcast (CMCSA) looking to get in on the action, it’s clear that esports is here to stay.

So, if you’re looking to get involved in this burgeoning industry, here are three of the best esports stocks to buy now:

Activision Blizzard (ATVI)
As one of the largest video game publishers in the world, it’s no surprise that Activision Blizzard is one of the best stocks to buy for exposure to esports. The company operates some of the most popular competitive gaming franchises in the world, including “Overwatch,” “Hearthstone,” and “Call of Duty.”

What’s more, Activision Blizzard owns several professional esports leagues, including the Overwatch League and Call of Duty World League, which gives it a direct hand in growing this side of its business. And with a market cap north of $60 billion, Activision Blizzard has the size and financial stability to weather any bumps in the road.

Electronic Arts (EA)
Like Activision Blizzard, Electronic Arts is a top video game publisher with several hit franchises under its belt, including “Madden NFL,” “FIFA,” and “Battlefield.” But EA has also been a pioneer in competitive gaming, launching its own professional esports league for ” Madden NFL” back in 2016. Since then, the company has expanded its efforts into other games and now operates leagues for “FIFA,” “NBA Live,” and “Apex Legends.”

What’s more, EA plans to launch a new subscription service later this year called EA Sports FIFA World Cup that will let gamers compete online for prizes. With a market cap approaching $30 billion and strong growth prospects ahead, EA is another top stock for investing in esports.

The Future of Esports Investing

With the immense popularity of esports, many people are wondering if they should invest in the industry. While there is no guaranteed path to success, there are a few things to keep in mind that may increase your chances of seeing a return on your investment.

First, it is important to understand the difference between investing in esports and gambling on esports. While both activities involve risk, investing is about putting your money into something that has the potential to grow over time, while gambling is about placing a bet on the outcome of an event. If you want to invest in esports, you should look for organisations or companies that are well-established and have a track record of success.

Another thing to consider is the type of investment you want to make. There are two main types of investments in esports: direct and indirect. Direct investments involve putting money into an organisation or company involved in esports, such as a team or league. Indirect investments involve putting money into something that is not directly involved in esports but still benefits from the growth of the industry, such as companies that make gaming hardware or software.

Finally, it is important to remember that like any other investment, there is no guarantee of success when investing in esports. However, if you do your research and invest wisely, you may be able to reap the rewards of this burgeoning industry.

Conclusion

Based on everything we’ve discussed, investing in esports can be a very lucrative endeavor. However, it’s important to do your research and understand the risks involved before making any decisions. The key is to invest early in promising teams and players, and to diversify your portfolio so that you’re not putting all your eggs in one basket.

With the industry predicted to continue growing at an exponential rate, now is the time to get involved in esports if you’re thinking about it. Thanks for reading, and we hope this article helped you make a decision!