The global gaming industry has seen significant changes over the last few decades. Ever since the first computer game called Nim was designed by American physicist Edward Condon in 1940, there’s no looking back for the industry.
The video game console was introduced in the 1970’s and this evolution was rapid over the next few years. As video game graphics improved, companies such as Electronic Arts [EA] and Activision Blizzard [ATVI] were found.
Heavyweights such as Sony [SNE] and Microsoft [MSFT] soon wanted a piece of the gaming pie and introduced popular consoles such as the PlayStation and Xbox. The global gaming market has grown at a spectacular pace and is expected to reach $137.9B by the end of this year, according to Newzoo.
The growth of eSports
The latest growing trend in the gaming space is eSports. eSports is a multiplayer video game played competitively by professional gamers.
While video games were traditionally played for recreation, it has now become a viable career option for gamers. The inflow of funds into eSports is set to drive prize money and sponsorship deals higher.
Gaming research company, Newzoo expects eSports to reach $905.6M by the end of 2018, a rise of 38% year-over-year. Newzoo estimates brand contribution alone to account for 77% of the eSports market or $694M this year. Better yet, the global eSports audience is expected to cross 380 million this year.
Major video game companies have entered the eSports space
The eSports segment has attracted the attention of top gaming companies. Activision Blizzard is already a market leader with its hugely successful launch of the Overwatch League.
The first season of the Overwatch League garnered attention from sponsors as well as spectators. The global audience spent 160 million hours watching matches of this league.
Activision recently announced the sale of eight new franchise teams bringing the total number of teams to 20. The gaming giant aims to have a total of 28 teams for the Overwatch League. While the first 12 teams were sold for $20M each, the next round of franchise sales was between $30M and $60M, according to ESPN.
Activision signed broadcasting deals with Amazon’s [AMZN] Twitch to stream live matches. It has a content partnership with Twitter [TWTR]. The company also bagged sponsorship deals with Intel [INTC], HP [HPQ] and T-Mobile [TMUS]. The broadcast rights and sponsorship deals have generated over $100M for Activision.
The worldwide eSports audience is estimated to reach 580 million by 2021 and this will lead to an increase in eSports tournaments.
Gaming firm’s such as Electronic Arts [EA] organized The FIFA Interactive World Cup, an annual video gaming competition. Companies including MLG, AHQ and Denial have multiple sports leagues as well.
Key drivers for eSports growth
Research company Newzoo expects the eSports market to touch $1.65B in 2021.
The company estimates that the growing industry will bring in contributions from sponsors and advertisers. Companies such as Twitch and YouTube [GOOG] will also eye media rights and broadcasting deals. Gaming publishers are paid ‘Game Publisher Fees’ to host tournaments.
There are also tickets and merchandise revenue generated via ticket sales for eSports events. The industry’s sponsorship revenue rose 55% to $250M last year while Twitch paid $90M this year to broadcast the Overwatch League.
Increase in viewership data and prize money
Twitch is an online streaming platform and primarily focuses on broadcasting eSports competitions from around the world. It has managed to grow its viewership base at a compounded rate of 21.3% in the last three years.
In 2017, viewers tuned in to watch 6 billion hours of content on Twitch. Earlier this year, YouTube made its largest eSports investment to date and signed a multi-year broadcasting deal with Faceit.
These partnerships and deals have resulted in a substantial increase in prize money. The total prize pool for the Dota 2 tournament exceeded $20M.
The above chart shows the earnings of top gaming players. Japan’s Kuro Takhasomi leads the eSports earnings with a prize money of $3.74M to date.
Tencent expects China to lead the eSports market
Tencent is the leading global gaming company in terms of revenue. The company estimates China’s eSports sector to reach 350 million users by 2020 and generate annual revenue of $1.5B. If this happens, the country will account for 59% of total viewers.
What’s more, the total number of eSports viewers might exceed Tennis viewership in the United States. As per Newzoo estimates the most popular eSports team will have a Twitter following exceeding that of Golden State Warriors.
With the game-streaming content set to exceed 10B hours across major platforms, the world’s 10 biggest cities might just invest in a dedicated eSports stadium.
Over One-Third Of Americans Ignore Their Brilliant Business Ideas. Here’s Why You Shouldn’t
An overwhelming number of Americans who’ve considered launching their own business shied away from doing so. With a crazy lot of opportunities out there, most of them stopped chasing their business idea due to a large number of reasons – lack of capital, blamed inertia, fear of bankruptcy, or even their age.
Let’s be honest – entrepreneurship isn’t easy. It takes an incredible amount of time, effort and drive. With that said, there’s never a better time to start your business than now. Not next week, not next month – but now. Here’s why you should.
You can take the risk.
If you never try, you’ll never know. There’s going to be a time when you’ll eventually get to “If only..” and that might throw a lot of regrets your way. With every risk you take, you’re constantly learning and you can always, always recover from them over time.
Of course, you have the money!
Let’s face it – there’s never going to be ample or enough capital. Entrepreneurs are always going to need more. The trick is to do more with less – think: less time, less overhead costs, less staff. Despite the crazy cost-cutting ideas you have, if the money still doesn’t meet the mark – change your business plan.
You can create anything – even beam heat to space. The ability to create anything you want shouldn’t be lost while running it across a string of approvers or bureaucratic hurdles. Got a big idea jotted down? Figure out a way to make it work. Network, research, chalk out a solid business plan, splurge your creative skills, let people know what you’re doing, but make it happen.
Acquiring customers has not been easier.
With super useful marketing tools, social media and analytics, the farthest you need to get to are a few clicks.
It’s possible (and cost-efficient) if you plan it right.
With some of the best software at hand, nearly everything can be set up quickly and sometimes free. Crawl the internet for credible sources to help you out when you’re stuck. You can seek advice from specialized company formation agents who can help you out with legal and other bureaucratic hassles, so you focus on driving your business.
It’s super easy!
Many who look to take the plunge just stall simply because everything seems overwhelming or difficult. Here’s what’s surprising: it’s not. What’s more, this Inc piece tells you how you can set up your business in two or three hours.
What’s holding you from realizing your business goals?
Here’s How Microsoft’s CEO Runs A Meeting #BossUp
So how do you run a meeting effectively?
Satya Nadella, CEO of billion-dollar behemoth Microsoft, is known for keeping his meetings concise and to the point, always telling his employees to skip pointless talking points that waste their time.
When Nadella took over Microsoft, the company was going through an identity crisis. The company was lethargic and had almost lost its innovative edge.
But in the years since, Microsoft CEO Satya Nadella has transformed more than the stock price.
One way he did so was by transforming Microsoft’s meeting culture.
In an interview with The Wall Street Journal a few years ago, Nadella shared his three-rule method for better meetings. Here’s how it went.
Listen more (two ears, one mouth)
Nadella says listening to your team helps provide an environment where one they feel comfortable expressing their ideas, and sharing their problems and even their mistakes.
This is valuable data that will help you guide your team in the most effective way possible.
You can talk less by asking more questions, not rambling, drawing out quieter members by asking for their opinion, and staying on time. If you find you talk too much, ask yourself how important it is to the overall message of the meeting. Biting your tongue can make the meeting more efficient.
Be decisive when the time comes
Remember, it’s great to talk less and listen more, but that won’t get you anywhere if you don’t assign tasks and follow through.
How To Get Team Members On The Same Page: 5 Tactics To Follow
(Editor’s Note: The following article is a guest post by superstar entrepreneur and tech investor Jonathan Schultz.)
No matter how advanced artificial intelligence gets, we will always need humans to bring their organization’s vision to life. But, how do we bring people on board that can really, truly live and breathe that same vision? What is the secret sauce to getting team members on board without having to twist their arm? Let’s find out.
The biggest thing to take into consideration is that different people are influenced by different things. There is not a one-size-fits-all method that will get everyone on board with new ideas and plans. Here are a few ways to get your team members on board:
1. LISTEN TO THEM & LEARN FROM THEM
You need to understand where the biggest issues and concerns within your company lie. You have to create opportunities for people to engage directly. To feel empowered. To move in the direction that allows them the ability to make decisions. You will never win over any team members by making hasty assumptions, so get down to the facts and ask the hard questions, listen to the answers and learn from the feedback you are getting. You can’t do every job at your company —so stop trying to!
2. BE RELATABLE
Don’t just tell people what you want to do and what you plan to do, give specific reasons for each. There’s a reason why MLK and Gandhi were able to get crowds everywhere they went. Remember — people aren’t following you for who you are, they’re following you for what you believe. Talk about what motivates you, your experiences, who you really are and what you believe in.
You need to show your team a vulnerable and human side so they can relate to you —and then relate to themselves. If your team can understand where you are coming from, they will follow you to the depths of … wherever you go. Be a leader!
3. TAP INTO EMOTIONS
Emotions certainly have a place in business – a very important place, honestly. It’s where most important decisions manifest from. As much as we think we’re thinking from our heads —the reasons why intuition and “that’s a gut feeling” exist is because it’s coming from an emotional place. If you are genuinely passionate about your team and your business and you are invested in your ideas, your team will feel that, and so will your customers. Do not hold back.
4. ALWAYS BE CONSISTENT
Your message should never alter. Maybe you pivot, but you need to say what you mean and mean what you say. While your tone may change and your approach may change, your central message should always be consistent. The idea is not to just spout off what you think the audience wants to hear, but to tell them what they need to hear in an honest and professional way. And, allow feedback to come back in the same manner. This is not personal —this is progress. Leaders will win over their them by being transparent and saying things in a way that people can hear.
5. MAKE AN IMPACT THAT MATTERS
What you say and do should be aligned with your company’s purpose and goals. You need to make it very clear to your team members how they play into the bigger picture. Remember, without them, there is no picture. When you narrow your focus on purpose, you establish common ground that many people can get behind and support.
These five tips will help you get your full team on board with your vision. Stay honest, be true to your values and make sure your team knows that they are vital and the reason for the company achieving its goals. As we say, there’s no “I” in “team”.
Jonathan Schultz is an entrepreneur, real estate tech investor and influencer. He’s the co-founder of Onyx Equities, a leading private equity real estate firm, and has been voted one of the most powerful people in real estate. Follow Jon’s blog here.