NEW BUSINESS MODEL IN THE GROWING E-SPORTS INDUSTRY

Problems and perspectives in management, 2018

The article deals with eSports as a perspective kind of commercial activity. The research urgency is determined by the fact that, given the active increase of eSports market with growth rates of more than 30% per year, the types of commercial activities in this field and in scientific papers are not studied in an adequate degree. The purpose of the article is to evaluate the commercial activity development in eSports and to determine the perspectives for its further growth in Ukraine. In order to determine the key types of commercial activity in eSports, the main sources of revenue in this area compared to sports were investigated, which showed a large unrealized potential for increasing revenues from the sale of tickets to competitions, the realization of broadcasting rights and merchandising. The study also showed that the largest number of income sources in eSports is at the stage of cyber-tournaments, which can be explained by a large consumer audience at this stage. However, unlike the world practice, computer game producers and well-known manufacturers of consumer goods in Ukraine do not finance domestic competitions, and, therefore, this stage of commercial activity remains at a low level. In modern conditions, among the types of eSports activities in Ukraine, only the computer games production and the cyber-racers game are properly developed. According to authors, to improve the eSports development in Ukraine, creating the national system of regular eSports competitions is needed, which will form the basis for the development of most types of commercial activities that are part of the cybertournaments. To do this, one needs to create appropriate platforms, as well as improve communications with fans in social networks and at amateur competitions. All this will make eSports a highly profitable business in Ukraine. Natalia Lokhman (Ukraine), Oksana Karashchuk (Russia), Olena Kornilova (Ukraine) LLC "СPС "Business Perspectives

2021

Esports has gained much attention in recent years, especially traditional sports clubs see esports as a way to diversify their product or brand. This is since many traditional sports are going gray, and they are often failing to attract a young audience. Furthermore, they need to catch-up concerning digitization and internationalization. These aspects are ingrained in the DNA of esports. Therefore, until the end of 2019, over 400 professional sports clubs entered esports. Though, there is no single strategy to enter the eSports ecosystem observable. Consequently, the goal of this paper is to systemize the way sports teams are acting in esports. Based on that analysis, three cases will be presented to show the potential struggle in joining esports and why sports need to establish a strategy for entering esports. Finally, several implications for sports teams will be presented to minimize the risk of entering the esports ecosystem.

2021

Accompanying the popularity of high-performance computers, the amount of scholarly study focused on organized, competitive gaming has steadily expanded. To date, user engagement analysis has primarily concentrated on in-game variables, but external influences, including game streams and game-centered communities, affect the intention to both play the game and make in-game transactions. In particular, a new medium for customer engagement is offered by the rise of professional gaming, known as esports. Many non-endemic conventional luxury companies have, however, avoided capitalizing on prospects for esports brand creation. This paper offers a literature analysis of the past and present literature on esports and sports marketing, resulting in the development of a figure representing the history of the esports endemic and non-endemic industry of esports brand use. This study examines the ability for esports to be a powerful element in recognizing both gaming intentions and spending mon...

2020

It is our contention that the 2019 esports industry’s revenue size is massively undervalued at $1.1B USD within the literature. This paper provides a more accurate sizing of the esports landscape, incorporating into the analysis six major sectors of the esports industry: 1) teams, professional players, and streamers, 2) game publishers, 3) streaming platforms, 4) physical products, 5) leagues and tournaments, and 6) digital tools. Each sector is discussed separately, with descriptions of the business models and corresponding revenue equations that drive each sector’s revenue estimates. Overall, we purport that $24.9B USD is a more accurate estimation of the “true” market size of esports for 2019.

Digital Business Models in Sport, 2022

Routledge Handbook of Esports, 2024

The aim of this chapter is to stimulate discourse by offering an overview of potential future trends within esports, highlighting what is needed for the industry to thrive. After discussing past predictions on the future of esports, The Future of Sustainable Esports Model is proposed that, if followed, would help the industry grow and prosper. The four components of this model include esports economic, governance, social, and environmental sustainability, with crossover sub-components of: accountable, equitable, responsible, and viable. Strategies, challenges, and opportunities within the esports ecosystem are discussed across each of the four esports sustainability components that will affect whether esports thrives in the future. Key highlights include: 1) A broad overview of recent future of esports research, 2) Clear and concise definitions of esports sustainability, including esports economic, governance, social, and environmental sustainability, 3) An insightful interview with Alban Dechelotte, CEO of G2 Esports and member of the International Olympic Committee (IOC) Esports Commission, forecasting many facets of esports in the future, and 4) An argument for a morphogenetic approach regarding future interdisciplinary esports research.

As the development of world reaches such high stage, more and more new industries appears in the markets. As one of them, e-sports shows its influence and competition to us. Under the circumstance of economics develops at such high speed, e-sports use its power to contribute to impact the world economy. League of Legends, DOTA2, Counter-Strike are the three most popular e-sports games around the world. As the famous PC games companies, the Riot and the Valve separately own these three games and they also earned so much money rely on the games. The e-sports games are changing the players' life and world economy structure. It brings the world huge economic investment, business and job chances. The e-sports games are impacting the world economy gradually.

IAEME PUBLICATION, 2020

It has been only 3 years since the launch of Garena FreeFire also known as FreeFire battlegrounds or FreeFire and it has become one of the most downloadable mobile game globally in 2019 and received the award of the "Best Popular Game by Google Play store in 2019. Most of the research done earlier around live streaming E-Sports games lacks the ability to map the strategies that led to the success of these games. This research tries to map the strategies and the success of the live streaming gaming, Garena FreeFire in particular from the blue innovation perspective. The research has two objectives which are:- To find out the strategies which Garena FreeFire implemented for its success.  To evaluate user perspectives towards Garena FreeFire which ultimately reveals the strategies implemented by Garena. The research follows a qualitative data collection and analysis in the form of interviews from different users who are both students and working professionals. The results of the search shows that the investment in the mobile platforms would lead to sustainable competitive advantage in comparison to PC"s and other gaming devices. The research also shows how strategies can influence consumer behavior. There were several factors that led to the success of Garena FreeFire and this study aims to evaluate those factors so that it may be implemented by other online-gaming industries and improve their business as a whole.

eSports is growing around the globe, with more and more individuals are engaged as players or spectators. In this paper, the authors reflect on whether eSports can be considered as sport based on evaluating five characteristics of sport and assessing them for eSports. Currently, eSports are not a sport but there is the potential that eSports will become a sport. Different opportunities how marketers and managers can attend to eSports are outlined.

Realigning Research and Practice in Information Systems Development, 2001

This paper presents an action case study of the process by which the Swedish computer game developer Daydream Software planned, developed, and implemented the business model for its new online game, Clusterball. In particular, the paper explores Daydream's choice between a radical business model and a conservative one for the game. Building on forecasts that "casual gamers" such as academics, business people, middleaged people, and women would become important for the future growth of the electronic games software industry, Daydream first pursued a radical business model, viewing the game as an "entertainment portal." However, in light of the perceived need of results and release, a more conservative business Part Number: Title 2 model, aimed at already experienced gamers, was implemented. In view of this critical choice, there were many different assumptions, beliefs, and opinions about customers, the appropriate choice of technology, and the nature of gaming in general among the staff and management at Daydream. The findings of this paper illustrate the tension between new business models and pre-existing social and technical conditions, and the study provides useful insights into the broader theme of balancing radical and incremental change in developing business-to-consumer commerce.