The growth of gaming and esports as a form of entertainment

by Guest Journalist Adam Matthews

A friend once told me the reason he enjoys playing computer games is because there are no real-world consequences. It’s purely a leisure activity. You can play to pass the time, either solo or with a bunch of pals.  

It stuck with me. The idea of gaming having no real-world consequences. What my friend said is true – – gaming is generally seen as a leisure activity. 

But recently the possibilities for gamers have opened up. Gaming and esports are now seen as a valid source of income. There are plenty of pro-gamers who get paid to play. And this, readers,  is an example of how gaming can have real-world consequences. 

Financially rewarding, real-world consequences!

What is esports all about?

Esports is online gaming, as a spectator sport. And, just like many professional sports players, esports players can earn big. Like. Big, big.

Many would agree that, not too long ago, esports was seen as a niche subset of the wider sports industry. It has, however, burst into the mainstream and seen massive growth in recent years. Esports has become an industry in its own right and a booming form of entertainment globally.

Gaming analytics and market research firm, Newzoo, have released a report with some staggering statistics and insights on current gaming and esports market trends. 

The “TL;DR” of the 2021 report is that the gaming industry experienced explosive growth during 2020. Due, in large part, to the COVID-19 pandemic and people seeking entertainment and ways to spend their time. Lockdown measures spurred enormous interest in gaming and mobile gaming, in particular, saw the largest growth impact. 

Although the same level of growth is not likely to be maintained during 2021, people’s engagement with gaming is still likely to flourish. 

Unsurprisingly, due to supply chain disruption, gaming console manufacturing is still trying to catch up with demand. The ripple effect of this will continue to be felt throughout 2021 and into 2022. AAA games that were in the early development phase at the beginning of 2020, are likely to be further delayed.

The report shows that in 2021, the global games market is expected to generate revenues exceeding $189 billion, with a forecast of over $200 billion in 2023. Mobile gaming revenue is set to account for around half of the total global gaming revenue this year. 

The global cloud gaming market also saw steady growth in 2020 and its audience will continue to grow throughout 2021. In fact, global revenues for the cloud gaming market are expected to exceed $1 billion for the first time ever.  

Are you playing games with me?

Today, there are a whopping 2.8 billion gamers worldwide. Traditionally, gaming has been a B2C market, with a focus on the players, to generate revenue. Esports on the other hand, is a viewer-centric market. 

According to Newzoo, the global esports audience will grow to around 474 million in 2021. In another report, Newzoo expects that the total global competitive gaming audience is likely to reach 577 million in 2024. This is based on a compound annual growth rate (CAGR) of 7.7 percent. 

In many respects, the esports industry resembles that of the traditional sports industry. Sponsored gaming tournaments and leagues are set up where gamers compete. Large audiences can attend these live events in person or watch online, via streaming platforms.

Twitch and YouTube are widely considered to be the most popular platforms for game streaming. Younger audiences are gradually moving away from traditional TV viewing towards online streaming outlets. And, interestingly, platforms are also doubling down on non-gaming content to retain their audiences. 

Show me the money… 

A lot of revenue comes into the esports industry through ticket sales, merchandise sales and in-game purchases. However, most of the revenue comes from sponsorship, advertising and media licensing.

China will have the largest audience in 2021, with over 92 million esports enthusiasts. Followed closely by the U.S. and Brazil. It shouldn’t come as too much of a shock to hear that China will also be the largest market by revenue this year, with total expected revenues of over $360 million. 

With all this capital flowing around, you have to wonder, what’s in it for me? Are you sitting down?

While top pro-gamers earn millions each year, the average esports enthusiast will earn roughly $4.63 in 2021. This is up from $4.40 in 2020, by the way. That figure is likely to increase to $5.25 in 2022 when live tournaments and events get going again. 

If you’re disheartened by this, please keep reading. There is light at the end of the tunnel.

If you’re the type of gamer who isn’t powered up by the idea of streaming your skills online for the entertainment of others just yet, there are platforms out there where you can just play and earn some extra cash.

Bitspawn is a play-to-earn platform built on the Solana blockchain network. The company’s focus is on providing a platform for gaming tournaments that is fair and reliable for players. 

The key takeaway here is that smart contracts on the blockchain distribute funds to the winning players. No one person controls the funds and payouts. It’s automated and trustless. Players on the Bitspawn platform can receive their proportional share of the winnings securely, within minutes of finishing a tournament.

Players can organize leagues and tournaments with friends, and set entry fees and prize-winning amounts. There’s also a community building aspect; Bitspawn is designed to benefit amateur and pro end-users, rather than primarily focusing on organizers and sponsors. 

And, in the name of fairness, less experienced players won’t be automatically pitted against more seasoned players. Unless, of course, they want to be. 

Player 1 – are you ready?