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How and in What Way Esports Impact the Economy of the World
Esports impact the economy worldwide in a multitude of ways. For some people, the whole video gaming industry represents nothing more than a leisurely pastime. On the other hand, some consider gaming their life.
The concept of eSports is not new. There were several attempts to organize competitive video gaming in the past. People’s interest in such events has always existed. It just lacked the spark to start it all. With the development of technology, conditions have been created for raising the entire gaming industry to a higher level. Today, the gaming industry is reaching almost unrealistic limits in popularity. It affects many other sectors and pushes them forward. Let’s see how.
eSports Market Size
The first eSports event ever recorded was in 1972, when the first consoles became common. Little less than a decade later, the Space Invaders competition was held and gathered 10,000 participants.
Despite everything, few could have guessed that the value of this industry would one day reach $1.8 billion. Today, the industry reports growing revenue in all parts of the world. The North American market, for example, hit $300 million in esports revenue. While some of the money comes through media rights, merchandise sales, and event ticket sales, the majority of revenues come from sponsorships and advertisements.
eSports Impact the Economy Thanks to the Audience
Although the initial events heralded something big, few hoped that the video gaming industry would reach today’s figures. Video gaming is a religion, and the best e-sportsmen are gods. More and more people are getting involved to follow their favorite athletes. More tickets are always needed for any event, whether it is online or in person.
Streams are bursting with gigabytes, and the arenas are too small to accommodate everyone interested. In 2021 alone, the eSports industry reached 474 million viewers. The popularity of this industry is proliferating. The number of eSports viewers is expected to exceed 577 million by 2024. A single event can count millions of viewers. Here are just some of the numbers to have a much clearer picture:
- Free Fire World Series 2021 Singapore – 5.41M viewers,
- Worlds 2021 – 4.01M viewers,
- PUBG Mobile Global Championship Season 0 – 3.8M viewers,
- M3 World Championship – 3.19M viewers;
What is the Impact of eSports on the Global Economy
The math here is pretty simple. Video gaming attracts a lot of attention from viewers. It is clear to everyone that where the viewers are, there are sponsors and advertisements. All this leads to a large amount of money revolving around this relatively young industry. The effect of video gaming industry is best seen as follows:
- eSports impact the economy through local events,
- Earnings and job openings,
- Pushing other industries forward.
Local Events
As it is already known, big eSport events gather a large audience; people from different parts of the world gather to accompany their heroes. In some countries, video gaming enjoys great attention.
In China alone, 40% of internet users attend eSports events. A slightly lower percentage is in Vietnam (33%), while in the Philippines and Indonesia, almost every third viewer regularly follows video gaming events.
Local events attract large numbers of tourists. They all spend money on transportation event tickets, and the local economy also benefits significantly from their stay. In the United States, the average eSports fan spends about $497 on their favorite pastime. Other countries are not lagging behind, and video gaming fans around the world are spending money to enjoy their favorite electronic sport.
Here’s how much an average sports enthusiast spends on an annual basis:
- The United Kingdom: $156,
- Germany: $245,
- South Korea: $260,
- China: $283,
- Brazil: $203;
How eSports Impact the Economy Through Earnings
Video gaming enjoys a massive influx of money every year. Accordingly, those who are lucky enough to be part of the industry get their slice of the pie. When we talk about earnings, we mostly mean the teams themselves. The best eSport teams measure their income in the millions. This includes revenues from rights, sponsorships, sales of merchandise. Not to mention tournament prizes.
The United States alone has about 20,000 registered players. They earn about $169 million each year. It is similar in other countries, and players from China make $128 million, while in Korea, the figure is no less – $100 million.
However, it’s not just the players who make money. In the UK, for example, in 2019, the gaming industry employed 1,200 people. Therefore, eSports significantly affects the economy by employing many people, and its growth leads to job creation as a result.
eSports Pushes Other Industries Forward
The video gaming industry is not just made up of gamers and audiences. Behind all of that fuss is a piece of large machinery that encompasses various industries. The development of eSports contributes to the importance of IT companies involved in game development. The demands of the market are growing, and more and more people are needed to meet all the needs, which is one of the ways eSports impacts the economy.
Retail, both online and land-based, records an increase in the turnover of goods. Simply put, as the video gaming industry becomes more popular globally, eSports enthusiasts are spending more money on equipment and other props. Thanks to eSports, other sectors are booming.
It has long been recognized that millions of people around the world like to bet on their favorite sports. Today, thanks to sites like esportsbff.com, eSports betting enthusiasts are spoiled for choices. Video gaming bettors have a wealth of resources with the latest information on the eSports market that can help them with betting, thanks to the development of the eSport industry.
Final Thoughts
Esports is way beyond being a global phenomenon. The industry managed to establish itself as an essential economic factor. Video gaming is catching up with many traditional sports, and it’s a matter of time when eSports are going to become predominant worldwide. Today, local economies relish video gaming events, eyeing them as a vital economic engine. Furthermore, eSporting participants, retailers, small businesses, and other industries related to video gaming profit from all this hype. Esports impact the economy more than you think. It produces new jobs and pushes other industries forward. That said, it is difficult to predict what the future holds as it seems like there are no limitations for the eSports industry.
