Back to Blog
January 27 2023
eSports and the
In 2021, the gaming industry was responsible for generating $180bn in global revenue and is considered to be even larger than Hollywood and the music industry combined. With an estimated 1 billion online gamers worldwide, the gaming industry has given rise to a subsection of this growing industry, namely eSports.
What the eSport
eSports or electronic sports can be defined as ‘a multiplayer video game played competitively for spectators, typically by professional gamers’. eSports is also seen as a culmination and connecting point for many brands that rely on sponsoring or hosting large scale and successful tournaments to gain the winning edge in this lucrative market.
eSports is expected to grow at a CAGR (compound annual growth rate) of 21% over the next seven years and is already boasting an estimated current worldwide audience of 215 million. It is therefore not surprising that brands are increasingly seeking differentiation in this massive, high spending and highly engaged audience.
How the metaverse benefits eSports
The rise of the technological megatrend, the metaverse, offers eSports brands the opportunity to turn ordinary 2D online gaming experiences into out of this world 3D gaming encounters where spectators not only have the convenience of joining a virtual venue but can actually feel the atmosphere and energy of the crowd – just as they would in the physical world. Let’s look at some of the benefits the metaverse will bring to the eSports environment:
In the world of eSports, the metaverse will:
- Allow for much greater fan participation, engagement, ownership and dynamic branding opportunities compared to what can be found by spectators attending physical tournaments and events
- Enhance interoperability to allow players to move gaming assets between different games and different spaces
- Intensify competitive playing as it will take place in a 360-degree environment with sensory elements that the real world cannot replicate
- Improve economic incentives through crypto offering a speedy way to fund prize pools through blockchains which enables the transfer of money almost instantly and at a small fee across the world. This eliminates waiting for days for prize money to clear the tournament organiser’s bank account. In addition, the use of NFTs (non-fungible tokens) allows owners to earn continuous royalties.
- Open the field for any sport to be transformed into eSports widening the audience base and potential for creative brands to effectively reach new audiences across all consumer touchpoints.
Across the world, visionary companies and platforms are already realising the limitless benefits of the metaverse on the eSport scene. The Electronic Sports Tournament Network (ESTN) has for instance created a global, blockchain-based platform incorporating real- world gamers, NFT ‘seat owners’, and franchise owners, with a powerful metaverse that pays big dividends to all participants. In addition, Yesports – an eSports engagement platform – has raised $2.25m during its round of seed funding in 2022 towards the development of its NFT-based eSports marketplace and eSports-focused metaverse. The Yesports metaverse will represent a cross-chain Metaverse Engagement Platform (MEP) designed to enable more than 500m eSports fans to engage with their favourite teams in custom-built metaverse experiences.
Tap into this beckoning market and contact SpaceTo now to grow your brand in the virtual eSports world where creativity and brand optimisation have no limits. SpaceTo are leaders in experiential metaverse design and development within creative economies. We imagine, create and deliver unconventional metaverse, 3D spaces and impactful journeys for experiential brands and ambitious creators.