Investments
At the demonstrative event at the Asian Games 2018 in esports, India bagged a bronze medal. The sector is now looking forward to the Asian Games 2022. Popular esports titles like Counter-strike: Global Offensive and DOTA2 have the potential to make it to the Asian Games 2022. This indicates that credibility of esports in India is on an upward curve, instilling confidence among people that pursuing esports as a career is a financially viable option that will bear fruit.
Everyone wants a piece of the esports action. Big investors are putting their monies in esports companies, confident of making big profits, looking at their growth potential. In March this year, South Korean video gaming holding company KRAFTON invested Rs 164 cr in NODWIN Gaming, an Indian esports solutions company. The money invested is being used to expand and strengthen the foundation of esports not only in India but also globally through partnerships in other regions like Africa, Middle East and South Asia.
Since technology forms the backbone of esports, capital is being pumped into technological advancements of gaming ventures to ensure a seamless and high-end user experience. Several brands such as Redbull and Mercedes-benz are stepping up to sponsor big esports events such as Rebull MEO, River Runes and the NODWIN India Premiership. We’re seeing brand endorsements being done by star players and gaming influencers being used by big brands to launch/market their products, providing further fillip to the popularity and growth of this sector.
Digitalization and Streaming
Post COVID-19, most traditional sporting events and matches have been stalled or are being played behind closed doors in biosecure bubbles forvirtualaudiences. Covid-imposed lockdowns have played a huge role in moving people onto various digital platforms and have been particularly beneficial for the esports sector. Esports has managed to win the Indian market primarily due to the growth and promotion done on online streaming platforms such as Youtube and Facebook. According to a recent report by KPMG titled ‘Beyond the tipping point – A primer on Casual gaming in India’, the Indian sports segment is expected to grow by a CAGR of 27% over FY21-25 to reach Rs 5,700 cr. Over the next five years, the esports segment is expected to grow rapidly due to increased interest from brands for sponsorship, publishers to promote games and entry of new players across the value chain ranging from organizers to participating teams, the report said. As we speak, the technology deployed in the esports industry is evolving at a furious pace. We’re talking about AI, cloud gaming, virtual and augmented reality, cutting edge graphics, gesture control and voice recognition. Esports is the sport of the future and the possibilities of what it can achieve as a result of these tech changes are limitless.
“This sector has potential to become as popular as cricket on the back of increased foreign and domestic investments in Indian esports companies. Merchandising revenue, celebrity status for star players, social media engagement, mega tournaments and increasing prize pools – are some of the factors that are to drive investment into esports, thus making it one of the fastest-growing sectors POST-COVID-19”