Sunday, 30 October 2016

Computer gaming a legitimate career?

Millennials follow computer games and their teams just as passionately as sports. Even Australian banks are getting on board with news that St George is sponsoring a local gaming league. The biggest event the League of Legends world championship was held this weekend at the Staples Arena Los Angeles. Esports as they are known is massive in Korea and it's reflected in their sponsorship the top team SK Telecom T1 defeated Samsung Galaxy for the championship. The debate about whether gaming is a sport can be settled they earn just as much. The wining team took home $2m. Interestingly over 50% of the $5million pool was contributed by fans the final number will continue to increase as fans can contribute till November 6th.


 Viewership is already ahead of hockey and is on track to overtake every American sport except NFL by 2020. It was the first worlds final to go to five games but for the rest of us it's hard to follow. The commentary is interesting with each gamer having their own call signs such as Blank and Wolf. Most millennials relate more to these gamers than to professional sports stars. 


It's a great business model change for gaming companies. Gaming in general is predicted to increase significantly (see chart below) so far they earn money from games but if you begin to add in ticket sales, sponsorships and licensing revenue its financially looking much more attractive than the traditional sports model.


These slides were sourced from http://www.wsj.com/articles/activates-michael-wolf-predicts-whats-next-for-tech-and-media-in-2017-1477436031?tesla=y


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