Esports, or competitive video gaming, has been a part of the entertainment world for decades. While it was once a niche activity, it exploded into the mainstream in the late 2010s and early 2020s, gaining recognition as a legitimate sporting industry. During this time, forecasts were optimistic, with many experts predicting the global esports market to continue growing at a rapid pace. Some even suggested that, by 2032, esports would be worth around $10 billion.
Much of this growth was driven by external factors. In the early 2020s, physical sports leagues were disrupted, leading to the cancellation or postponement of matches. With traditional sports temporarily unavailable, many fans turned to esports for their competitive fix. As a result, esports saw a surge in viewership, investment, and participation.
Now that traditional sports have returned to their normal schedules, can esports maintain the growth momentum it gained during those extraordinary times, or will it begin to decline as fans shift their attention back to physical sports?
Let’s explore the current state of esports in 2024.
Live Streaming Viewing Figures Are Down
One key measure of the health of the esports industry is its online viewership, particularly through live streaming platforms like Twitch, YouTube, and Facebook Gaming. However, recent data indicates that there may be some warning signs.
According to Stream Hatchet’s Live Streaming Trends Report Q2 2024, the number of hours of esports content streamed across all platforms saw a slight decline compared to the previous year.
In Q2 2024, 7 million fewer hours of esports were live-streamed compared to Q2 2023, accounting for a 1% drop in viewership.
While this might sound alarming, it’s worth noting that these figures are somewhat skewed. Q2 2023 set a record for the most hours watched across all platforms, making it a tough benchmark to beat.
The esports industry is still attracting millions of viewers, and the slight dip in numbers may simply indicate that the market is stabilising after years of rapid growth, rather than declining.
Esports continues to be a major form of online entertainment, but it faces challenges from competing forms of content, including the resurgence of physical sports and the rise of non-gaming live streams such as “Just Chatting” categories.
Esports Continues to Be the Most Interactive Form of Sport
One of the major advantages of esports over traditional sports is its interactivity.
In traditional sports, breaking into professional leagues requires years of training, connections, and scouting opportunities.
However, in esports, talented players can climb the competitive ladder quickly through ranked play, local tournaments, or online events, potentially leading to a spot in major tournaments.
A great example of this is EA’s F1 23 game, which has a thriving esports scene. Players can compete in ranked online races, which could lead to invitations to higher-level competitions.
The best performers can even get scouted by official F1 Esports teams, potentially leading to a career as a professional esports racer. This level of accessibility is unprecedented in traditional sports.
Poker is another game with a thriving esports scene. Whilst many players compete casually online through iGaming platforms, others want to go further by earning qualifications for major online and real-world tournaments.
Sponsors of these events often provide routes for online players to bag a spot. The PokerStars Power Path programme works this way, with three levels for players to progress through. Those who make it to the gold tier unlock a package that offers qualification for an EPT event.
Esports blurs the line between player and professional, offering opportunities for everyone to showcase their talents.
This unique feature of esports ensures it continues to appeal to a generation of gamers who see themselves not just as viewers but as active participants. The path from amateur to professional is much more attainable in esports, which will likely help sustain its popularity even as physical sports regain attention.
Team and Platform Closures and Bankruptcies
Despite the clear advantages of esports and its continued popularity, the industry is not immune to financial challenges. Like many other sectors that boomed during 2020, esports has seen its fair share of turbulence in recent years.
The increased exposure and investment during 2020 and 2021 raised expectations, but as the world returned to normal, some of the excitement and investor enthusiasm has waned.
One particularly troubling sign is the number of team and platform closures. Just one of many examples occurred in December 2023, when a major esports platform in Sweden filed for bankruptcy. This platform, which had been running tournaments for several years, had raised nearly $100 million in funding back in 2016. At one point, it was valued at $1.8 billion, showcasing the potential of the esports sector.
However, financial difficulties ultimately led to its downfall, which has caused some concern about the long-term sustainability of certain businesses within the esports ecosystem.
The fact that such a high-profile company can fail raises questions about the overall health of the esports market. While viewership remains strong, and esports remain interactive and accessible, the financial realities facing teams, platforms, and tournament organisers are becoming more apparent.
Verdict
Esports in 2024 is a fascinating industry. It remains a vibrant, interactive, and evolving form of entertainment, and while it faces challenges such as declining live-streaming hours and financial instability, it is far from fading away.
As physical sports reclaim their audiences, esports may no longer be growing at the same blistering pace as in the early 2020s, but it’s clear that it has carved out a lasting place in the global sports landscape.
Whether it can continue to grow or will experience further challenges remains to be seen, but its appeal and potential are undeniable.
