There’s no denying 2020 was a big year for video game growth.
In fact, with the pandemic keeping millions of people at home, video game spending in the U.S. totaled $56.9 billion for 2020. That was 27% higher year over year, according to NPD. In December 2020 alone, sales were up to an impressive $7.7 billion.
For 2021, the video game industry could see global revenue of $189.3 billion, says Newzoo, adding there could be 2.8 billion gamers worldwide in 2021. Part of that tremendous growth has been driven by the eSports market.
In fact, “Global eSports revenue was projected to reach $1.1 billion in 2020, with a majority of that earned through media rights and sponsorships, according to esports research platform Newzoo,” as noted by the South Florida Business Journal.
However, that may only be the start. At the moment, nearly 70% of China’s 720 million gamers are actively playing eSports games, as noted by CNBC. In addition, U.S. News & World Report has said, “The global eSports audience is expected to double from 335 million in 2017 to 646 million by 2023, according to Business Insider.
In short, the industry still has plenty of upside momentum.
One of the companies benefiting from the growth is Enthusiast Gaming Holdings Inc. (TSX:EGLX)(OTCQB: ENGMF), which reaches over 300 million monthly video game and eSports fans worldwide. Helping, the company recently announced it signed Samsung to an integrated sponsorship deal, leveraging its media, content, esports and entertainment platforms.
The multi-platform sponsorship will utilize the breadth of Enthusiast Gaming’s reach in the coveted Gen Z and Millennial demographics, to help drive awareness and market share for Samsung’s gaming focused computing components and accessories.
Enthusiast Gaming isn’t the only player in town
Heavyweight gaming companies are jumping on the eSports bandwagon, too, such as Electronic Arts Inc. (NASDAQ:EA), Activision Blizzard (NASDAQ:ATVI), Score Media and Gaming Inc. (TSX:SCR.TO)(OTC:TSCRF), and BBTV Holdings Inc. (TSX:BBTV)(OTC:BBVTF).
All because the eSports industry shows no signs of cooling off.
Instead, eSports interest is only likely to increase with the introduction of more franchise-style leagues, the centralization of eSports teams, and continued explosive growth in audience size, added analysts at Deloitte.
Plus, according to Kyle Vikstrom, Microsoft's director of investor relations said, as quoted by CNN, “Gaming is one of the largest and fastest-growing forms of entertainment in the world. We expect there to be more than $200 billion of revenue in this industry in 2021."
In a world where eSports is just beginning to gain popularity, this may be one of the top sectors to keep an eye on, long-term.
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