A decade ago, the idea that video games could be played competitively on a global scale and capture mainstream attention would have been laughable. And yet, that’s precisely the situation that eSports finds itself in today.
Electronic sports, known as eSports, have transformed the world of video gaming, moving it from a geek niche to a genuine spectator sport. Don’t believe it? Tens of millions of spectators tuned in to watch important clashes, such as the world finals of League of Legends and NBA Finals.
However, eSports do far more than provide a pastime for those who want to play and watch; they also have a substantial economic impact.
Offering Opportunities to Investors
The growth in the eSports market means it’s receiving a lot of attention from investors who have different ways of profiting from the sector. A straightforward purchase of shares may be the conventional option, but you don’t have to commit to ownership to benefit.
How CFD trading works is ideally suited to eSports investment; you can go long or short on a position and close quickly if you sense a change in mood. Some brokers also offer a basket of CFDs, so you’re not investing in a single company or game.
Although it’s the players and the games which receive all the attention, eSports supports many other industries. From development to tech, the success of eSports means that other sectors which supply eSports are also enjoying a meteoric rise. It offers an alternative to investing directly in the games, or possibly diversifying your portfolio to include tech stock.
An Established History
If you’re feeling a bit nervous about investing in a market which seems so young, it may reassure you to know that eSports have been around since 1972. Although they are one of the newer sectors, they’ve had long enough to establish a sustained interest from a core base.
The Space Invaders Championship started the craze in 1972 with an audience of 10,000. Over the decades it has gradually expanded exponentially, aided by the introduction of the internet. Today, it commands an audience numbered in the tens and tens of millions, and is an industry which is worth more than a billion dollars.
No longer considered to be a fringe industry, eSports have started to enjoy success in mainstream media. By 2022, it’s expected to achieve a total audience of 645 million.
Plenty of Upside
Despite the enormous growth in the sector over the last decade, experts believe that there is still a long way to go before eSports reaches its maximum potential. The ex-CEO of ESPN believes it could rival traditional sports, capitalizing on the trend for streamed entertainment.
There is a strong interest in eSports in the UK, and it’s an industry that is flourishing. Relying on a mix of tech and creativity, combined with the need to deliver streamed entertainment, eSports harness many strengths which the UK already has. Contributing more than £111 million to the UK economy in the previous 12 months, and employing hundreds of workers, eSports is a market that everyone should take seriously.
