Competitive video gaming, or e-sports, has been around in one form or another since the early 1970s and has steadily become more popular and professional ever since. Over the past two to three years, it has seen strong growth, moving into mainstream consciousness.
According to researcher Newzoo, which began issuing e-sports market studies two years ago, total global revenues from e-sports merchandise, tickets, sponsorships, online advertising, and media rights reached $325 million in 2015, up 68% from $194 million the previous year. Of the total, 38% comes from the North American market and 23% from China and South Korea. In 2016, total global revenues are expected to jump to $463 million, a 42% increase over 2015.
Meanwhile, Newzoo estimates the global fan base at 256 million, with 131 million of those termed “enthusiasts” and the remainder “occasional viewers.” The Asia-Pacific region dominates in terms of the number of fans, with 44% of the global total based in that territory; South Korea in particular has long been a hotbed of e-sports. The European Union accounts for 25% of global e-sports fans, and North America for 19%.
The past few years have seen the formation of new professional associations, such as the World E-Sports Association (WESA); high-profile acquisitions, such as Activision’s purchase of Major League Gaming; and the launch of new events and leagues, such as Turner Broadcasting’s ELeague. All told, there were 112 major e-sports events in 2015, according to Newzoo. Video game makers are increasingly integrating e-sports components into their titles, to enhance the experience for both the gamer and spectator.
Although categorizing competitive video gaming as sports has been controversial in some circles, e-sports operates similarly to the professional athletic sports. There are leagues and teams (complete with logos and mascots); high-profile player signings; official jerseys; and live events that sell out traditional sports stadiums, with audiences in the tens of thousands. There is 24/7 exposure on streaming services (especially Amazon’s Twitch) and coverage on social media (Facebook, Instagram) and TV (ESPN, TBS). Some colleges offer sports scholarships for video gaming; video game content and equipment companies sponsor teams and leagues; and teams and “cyberathletes” sign endorsement deals. There have even been doping scandals.
Licensing activity is also part of the mix. Some of the properties that have extended their names onto player jerseys, hoodies, gaming accessories, replica weapons, flags, headwear, and more include:
- Leagues. The ESL Pro League has an e-commerce site offering products featuring its own logo and those of e-sports teams and videogame titles; Major League Gaming has authorized products such as headwear and video game controllers over the years; and the logo of the Korean eSports Association (KeSPA) Pro League is found on replica player jerseys.
- Teams. Natus Vincere, EnVyUs, Ninjas in Pyjamas, and many other clubs hailing from Europe, Asia, North America, and elsewhere offer items such as hoodies and jerseys on their own sites and through other e-retail venues, including the ESL shop. Fnatic has launched its own branded line of gaming electronics and accessories tailored specifically to the e-sports community.
- Celebrities. Johnathan Wendel (Fatal1ty) has built a lifestyle brand called Fatal1ty Game Gear that extends from snacks to headsets, the latter from Monster. Other e-sports stars have print-on-demand programs, as ChimneySwift11 does with Redbubble.com and CavemanFilms with CaféPress. The products often feature artwork inspired by the players’ avatar or screen name.
- Video games. Interactive game marketers that sponsor events and leagues centering on their own titles often follow up with limited merchandise ranges tied to those initiatives. Activision’s Call of Duty World League is available for licensing as part of the greater Call of Duty licensing program.
Aside from these outbound licensing initiatives based on properties originating in e-sports, a handful of licensed IPs from outside the industry have dipped their toes into this arena as well, typically by launching branded events or leagues. Pepsico’s Mountain Dew, which has been sponsoring e-sports since 2003, recently launched the Mountain Dew League in partnership with ESL, while Cartoon Network paired with Machinima for a live tournament tied to its Adventure Time Card Wars Kingdom mobile game.
Popular game titles for competition include Counter-Strike: Global Offensive and League of Legends, two of the top examples, as well as several franchises backed by licensing efforts, such as Call of Duty, World of Warcraft, and Halo.
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