Archived Abstracts
From Mom’s Basement to Madison Square Garden: The History of Esports’ Economic Boom
Location
Sydnor Performance Hall, Schewel Hall
Access Type
Open Access
Entry Number
2
Start Date
4-8-2020 8:45 AM
End Date
4-8-2020 9:00 AM
Department
Sports Management
Abstract
In less than a decade, esports has transitioned from a hobby with a localized niche audience to a global phenomenon with millions of viewers. Due to the growing popularity of esports in the United States, it has seen a vast increase in economic investments. For example, esports organization Gen.G which alone raised $46 million in 2019 (Esports Observer, 2020). The historical growth in esports stems from several factors. First, as the younger male demographic’s consumption of traditional sport media decreased, it has increasingly turned to esports (Esports Trend Report 2018). Companies worldwide thereby embraced esports as a medium to reach the shifting marketplace (Nielsen 2017). Second, the desire of international businesses to reach Asian consumers, with a specific interest in the Chinese marketplace, enhances the financial appeal of esports. Unlike the four major North American professional leagues, which have had varying degrees of success in expansion abroad, esports is a truly global phenomenon. Finally, the ability of esports to seamlessly rebroadcast live across multiple platforms, in virtually any language, increases the industry’s popularity and advertisement opportunities. This paper uses a business history lens to analyze the factors spurring on the economic development of esports and argues that the investments in the industry directly stem from the historical shifts in the key consumers of the esport marketplace.
Faculty Mentor(s)
Dr. Lindsay Pieper
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From Mom’s Basement to Madison Square Garden: The History of Esports’ Economic Boom
Sydnor Performance Hall, Schewel Hall
In less than a decade, esports has transitioned from a hobby with a localized niche audience to a global phenomenon with millions of viewers. Due to the growing popularity of esports in the United States, it has seen a vast increase in economic investments. For example, esports organization Gen.G which alone raised $46 million in 2019 (Esports Observer, 2020). The historical growth in esports stems from several factors. First, as the younger male demographic’s consumption of traditional sport media decreased, it has increasingly turned to esports (Esports Trend Report 2018). Companies worldwide thereby embraced esports as a medium to reach the shifting marketplace (Nielsen 2017). Second, the desire of international businesses to reach Asian consumers, with a specific interest in the Chinese marketplace, enhances the financial appeal of esports. Unlike the four major North American professional leagues, which have had varying degrees of success in expansion abroad, esports is a truly global phenomenon. Finally, the ability of esports to seamlessly rebroadcast live across multiple platforms, in virtually any language, increases the industry’s popularity and advertisement opportunities. This paper uses a business history lens to analyze the factors spurring on the economic development of esports and argues that the investments in the industry directly stem from the historical shifts in the key consumers of the esport marketplace.