eSports & health: How lockdown affected the industry

Mercedes Benz eSports Arena
Mercedes Benz eSports Arena

Lockdown seemed like an ideal environment for the development of the gambling and eSports industries. The pandemic became a real boom for gambling – every day more and more Internet platforms were opened, like Playamo platform. However, the eSports industry as well as others suffered significant losses. We will tell you which ones.

Gaming in the Coronavirus

The main topic of 2020, of course, was health. It is unlikely that anyone will be able to surpass him in the near future. Large companies around the world have been hit hard by these difficult times. The reality is that at the moment, the full stands and the big tournaments we are used to seem like something out of the ordinary.

Obviously, the pandemic made the existence of classical sports impossible, but eSports, it would seem, on the contrary, should have received an impetus for development. This is partly true. Indeed, interest in video games has grown substantially.

eSports Player

Globally, the impact of the pandemic has accelerated processes that were already developing in the market, according to PwC. All gaming platforms announced a record increase in the daily activity of players.

It is worth noting the action of the World Health Organization, which was held in March 2020 together with two dozen game developers #PlayApartTogether – “Play separately together.” As part of the campaign, people were encouraged to stay at home, maintain social distance and hygiene, and instead of going outside, play computer games to compensate for the lack of communication.

In addition, people began to follow the streams. Time spent on the Twitch streaming platform, which is used to stream video games, increased 23% in March, compared to February, according to Streamlab. Other platforms also showed growth, and video game sales grew 1.5 times.

eSports | Player using mask

Industry losses

Despite its growing popularity, eSports, like many other industries, has suffered significant losses. Do not forget that there are a lot of offline tournaments in the industry that have been canceled. This means that the organizers have lost revenue from ticket sales and merchandise, broadcasting, and sponsorship.

Of course, it is much easier for eSports to adapt to the new reality due to its initial focus on online. If the situation does not change, tournament organizers will be flexible and will be able to find the optimal solution for making a profit.

Unlike traditional sports, has kept its core advertising inventory. We believe that eSports has shown its flexibility and advantages here.

However, computer sports have been hit hard by the pandemic. With the decline in purchasing power, brands are holding on to budgets and spending more carefully. Some advertisers were simply frightened and postponed serious projects for at least a year.

MTG, which owns the international eSports holding company ESL and Dreamhack, reported that it lost 35% to 45% of its eSports revenues this year in the first half of 2020 compared to the same period in 2019.

So, the pandemic went like a skating rink in eSports too. But eSports at least has a better chance of surviving! 

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