ESports in 2017

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ESports in 2017
Igor Djuricic

Glopinion by

Igor Djuricic

Feb 14, 2017

eSports market to hit $696 million this year.

The eSports market appears to be growing in fits. Newzoo today announced its annual Global eSports Market Report, and the market research firm expects the eSports scene to see growth slow in 2017, followed by a period of expansion through 2020.

Newzoo said it expects to see eSports economy hit $696 million in 2017, consumer spending on tickets and merchandise, and investment from game publishers. That total is up 41.3% from $493 million estimate for 2016's total market, which it released last August. Newzoo's 2015 report put the eSports research at $250 million, meaning 2016 saw a jump of 97.2% and $243 million, compared to 2017's expected jump of 41.3% and $203 million. Things will apparently pick up a bit in 2018 and beyond, as Newzoo is expecting the global eSports market to reach $1.5 billion in annual revenue by 2020.

 

The NBA and gaming gigant Take-Two Interactive, which owns 2K and Rockstar Games, have formed to create an eSports league around the NBA 2K video game. The competitive gaming league will launch in 2018 and be made up of teams operated by NBA franchises. No teams have committed yet, but all 32 have an expressed interest in participating, according to NBA Commissioner Adam Silver.. Coverage is likely to be on both online and TV broadcasts.

There are unknown quantities around esports. The NBA and Take-Two Interactive will need to shape deals with broadcasters, advertisers, and sponsors. Since the latter drive the lion’s share of esports revenue, these broadcast audiences will have to be large enough so as to warrant investments from brands.

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