The document discusses the rise of esports as a popular form of competitive gaming, highlighting its growing viewership and financial potential. It outlines the appeal of esports, the dynamics of professional play, and the challenges faced, such as fragmentation and reliance on game developers. The content emphasizes that esports is becoming a significant sector, comparable to traditional sports, with potential implications for marketing and investment.

1. Welcome to the world
of eSports

2. 'Something Needs to Fill That Void.' As Stadiums
Go Quiet, Esports Are Having a Moment
Viewership on Twitch, the go-to site for game streamers, is
up 31% in March, by one estimate.

3. A form of sport competition using video games.
ELECTRONIC SPORTS
OK duh, thanks… aren’t video games already competition?

4. True… I guess normy sports are also competition

5. LET’S BREAK THAT DOWN
Casual play.
The newbs, plebs, and
everyday people of the world.
FEATURES:
♦ Rules of the sport
♦ Organization through teams, leagues
Professional play.
The people getting paid to
play because of their skill.
FEATURES:
♦ Rules of the sport
♦ Organization through teams, leagues
♦ Mass appeal
♦ Tons of money

6. So how does a game become an eSport?

7. People are actually into the game.
REQUIREMENT 1:

8. Having mass appeal
is a big deal.
Not all sports have this. (*cough* water polo)
Not all video games have this either.
For a game to be entertaining to a
large enough base, it has to be
widely played or at least understood.
It also has to be easily watchable.

9. WE’LL LOOK AT LEAGUE OF LEGENDS (LoL)
The original eSports success story.
100 MILLION
total viewers during the
LoL World Championship
2019
44 MILLION
peak concurrent viewers
during the LoL World
Championship 2019
peak concurrent users on
LoL in a day (Sep 2019)
8 MILLION

10. IT’S EASY TO UNDERSTAND
The standard map and goals are simple.
TEAM 1’s
BASE
TEAM 2’s
BASE
MIDLINETEAM 1’s
PLAYERS
TEAM 2’s
PLAYERS

11. IT’S EASILY WATCHABLE
Watching is just like normy sports.
There are commentators!There’s live action!

12. READY PLAYER ONE
Speedrunning is like solo sports.
There are categories, kind of like how there’s the 100m, 200m, etc. in sprinting. It still
requires a high level of play and is entertaining. There isn’t as much money behind
the scenes.

13. There’s financial backing behind it.
REQUIREMENT 2:

14. You need cash money
to make it work, honey.
Athletes are paid (*cough* massive) salaries.
Their coaches, trainers, doctors, and
analysts are also paid. Teams can foot
these bills because they make a ton
of money from tickets, media rights,
merchandise, and sponsorships.
eSports is getting big enough that it
can operate similarly, just on a smaller
scale. For now.

15. ESPORTS BY THE NUMBERS
Video games are beginning to get big money.
$34 MILLION
The prize pool for The
International 2019, a Dota
2 tournament
$6.8 MILLION
The highest overall
earnings of a pro gamer
(N0tail, Dota 2)
Estimated cost to buy a
team in the Overwatch
League’s second season
$50 MILLION

16. ESPORTS ORGANIZATIONS
The business landscape is also similar.
Rich peeps own teams Teams have players
Teams have sponsors
Teams have support staff
♦ Coaches
♦ Operations
♦ HR
♦ Marketing
♦ IT/Developers

17. HOW THEY’RE MAKING THE BUCKS
Who needs networks when you have streaming?

18. HOW THEY’RE MAKING THE BUCKS
They’re monetizing their fan base.
Physical events
Digital events
Merchandise

19. HOW THEY’RE MAKING THE BUCKS
They’re selling big brands on advertising.

20. THE SPACE IS GROWING
We’re getting eSports-adjacent companies.
Physical therapists on a
journey to help the gaming
community play more and
hurt less.
A talent management and
dedicated brand
consultancy connecting
brands with pro gamers
and fans.
An early and mid-stage
Venture Fund investor
focused on the esports
sector.
A fantasy platform for
gamers, by gamers with
weekly cash prizes.

21. OK but where do the normy
sports analogies end?

22. eSports face more fragmentation.
CHALLENGE 1:

23. WHAT TO PLAY…
There are many similar games for players.
Jane here is really good at shooty games. But she has to pick which one to dedicate her career to…
Some of the most popular competitive shooter games

24. WHAT TO PLAY…
How’s a top tier player to
choose?
There’s a few things Jane needs to consider that
an athlete wouldn’t:
♦ Will this game still be popular in a few years?
♦ Will the devs continue to support this game?
♦ Will the league still be active?
♦ Will my sponsors find this a good fit?
♦ Oh yeah, do I actually like playing it?
The uncertainty in the eSports scene makes these
choices difficult. It’s not just purely about talent.

25. eSports face less fragmentation.
CHALLENGE 2:
wait, whut?

26. THEY DO IT ALL
Game devs hold the key to the experience.
CREATOR LEAGUE TEAM

27. THEY DO IT ALL
Why does it matter?
It gives one company unlimited cosmic power over
the fate of the game and its eSports experience.
And these companies traditionally don’t make
money off one game for decades. With this
centralization, a company could:
♦ Stop supporting the game
♦ Change the rules of the game whenever they
want, to whatever they want
♦ Change the format of the league (schedule,
teams, etc.)
♦ Change the player contracts league-wide

28. THERE ARE EXCEPTIONS
Some eSports do have others involved.
There are game developers that have zero interest in also managing an eSports league around
their titles. That’s when another organization can step in and organize. This diffuses the power and
is closer to the setup of traditional sports.
CREATOR LEAGUE TEAM

29. eSports is an awkward teenager.
IN SUMMARY?

30. Wanna learn more?
You don’t have to watch if you’re not into video games, but it is a really
interesting emerging business. If nothing else, it’s something to keep an eye on
because it will change the landscape for marketing.
DOT ESPORTS DEXERTO