Who Knew? eSports
I love it when I run across something I didn’t even know was out there. When I became economic development manager in the City of Carlsbad, an action sports mecca, I interviewed a company as part of my business retention and expansion outreach. The company was Osiris, and they made skateboarding shoes. I had no idea that skateboarders needed special shoes. I recently ran across another item that I didn’t know was a thing – and boy is it a big thing. ESports, which is competitive video gaming, is a huge and growing industry that city leaders need to know about.
Massive Growth
First some stats. In the ten years between 2010 and 2015, prize money at eSports tournaments increased 1000% percent, from $5.5 million to $60 million. This rapid increase is only likely to accelerate, because mainstream companies such as Activision, Turner Broadcasting and EA have recently started eSports divisions (Forbes, Darren Heitner, 12/31/15). ESPN now televises tournaments. Related businesses such as equipment manufacturers, fantasy leagues and even sportsbooks are also growing. The number of players at eSports tournaments has increased 359 percent from 2,795 in 2005 to 12,827 in 2015. While the average earnings per play was just $6,796 last year, players that win major tournaments can bring in over $1,000,000. There are 416 players that have earned over $100,000 in eSports tournaments (www.esportsearnings.com).
Stadiums Needed
ESports tournaments don’t just occur online, they are physical tournaments that happen in world-famous venues such as Wembley Arena in London, Staples Center in Los Angeles, and the Sang-am World Cup Stadium in Seoul which sold out 45,000 seats (Redbull, Joshua Nino de Guzman, 2/27/15). Stadiums are being built around the world specifically to host eSports tournaments. An eSports arena was recently built in Santa Ana, California and two more were just announced in Oakland and Los Angeles. Will your city be the next location for an eSports arena, associated company or champion? As eSports become more mainstream, they are definitely an industry worth exploring.
