The Decline of Esports is Over

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Published 2024-03-01
We interviewed the CEO of Team Liquid and other industry experts to dive deep into Esports. In just a few decades, they swept the globe, but recently the hype train is gone and now all we hear in the media is esports is dying. But what's actually going on behind the scenes?

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TeamLiquid
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"Why is StarCraft Popular in Korea?"
askakorean.blogspot.com/2010/02/why-is-starcraft-p…
Esports history
digiday.com/marketing/how-esports-grew-up-an-oral-…
Korea and Esports
www.global-imi.com/blog/game-rise-esports
"A Brief History of Starcraft"
tl.net/blogs/525627-a-brief-history-of-starcraft-p…
"KeSPA–GOMTV/e-Sports Federation dispute"
liquipedia.net/starcraft2/KeSPA%E2%80%93GOMTV/e-Sp…
"Major League Gaming acquired by Activision in $46 million buyout"
arstechnica.com/gaming/2016/01/report-major-league…
"Blizzard to create professional Overwatch League"
www.espn.com/esports/story/_/id/17968297/blizzard-…
"Riot Games moves to establish League of Legends as a lasting esport"
venturebeat.com/esports/riot-games-moves-to-establ…
"Esports Leagues Set To Level Up With Permanent Franchises"
www.forbes.com/sites/kurtbadenhausen/2017/10/03/es…
"How Overwatch League Re-writes The Rules Of Esports"
www.gameinformer.com/b/features/archive/2018/01/26…
"Why NBA Franchise Values Are Skyrocketing"
www.businessinsider.com/why-nba-franchise-values-a…
"The NBA’s Business Model"
www.investopedia.com/articles/investing/070715/nba…
"Teams Liquid and Curse Announce Surprise Merger"
www.redbull.com/us-en/teams-liquid-and-curse-annou…
"TSM and FTX Sign $210 Million Naming Rights Partnership, Largest in Esports History"
www.prnewswire.com/news-releases/tsm-and-ftx-sign-…
"FaZe Clan Inc. [FAZE] Rings the Nasdaq Opening Bell"
www.facebook.com/Nasdaq/videos/faze-clan-inc-faze-…
"eSports audience size worldwide from 2020 to 2025, by type of viewers"
www.statista.com/statistics/490480/global-esports-…
Esports revenue per viewer
barrymoltz.com/wp-content/uploads/2021/06/03785-US…
"Valorant Champions Skin Bundle Generates $40M"
esportsadvocate.net/2023/08/valorant-champions-bun…
Devin Nash
@devinnash
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All Comments (21)
  • @GoingIndie
    Do you think Esports will ever be bigger than the NBA?
  • @phoenixly
    My opinion on esports is that people over estimate where esports will be in 5 years and underestimate where it will be in 30
  • @corbis7765
    Esports tried to rush something that took ever other sport 50+ years
  • @Zender-
    it shows that Valve and Riot actually know how eSports works. League had its highest viewerships ever. Theres more hype than ever, and if devs know how to monitize it correctly (again riot and valve being prime examples regardless of how mess their games are) they know how to get an audience and the right audience.
  • @coolbrotherf127
    Giving teams their cut for selling in game cosmetics would be massive. In Apex Legends, when orgs asked EA for a split of skin sales, EA said "Hah, you get like $30k for letting us use your brand and we keep all the rest." These publishers make hundreds of millions of dollars but they can't imagine allowing the companies that partner with them also being profitable.
  • @CR0WYT
    Esports is a fetus when compared to most traditional sports. Leagues like the MLB went through over a century of development to get where it is now and even more if you incude the late 1800s before the franchising model was established. Esports has only really been around for the past 20 years if you don't include the little tournaments people had before the 2000s. Sure some leagues, teams, and even entire games will come and go, but eventually there will be specific games that will last for generations beyond us. Even with the recent failures of the OWL and soon CDL, there are also a lot of traditional sporting leauges that failed (CBL, CSL, BAFL, etc.). The future of esports or any form of entertainment isn't doom and gloom just because of a few setbacks and failed experiments. The day esports truly dies is the day PvP multiplayer dies and I just don't see that happening anytime soon if that were to ever happen.
  • Thats why T1 make Faker part owner, and last year viewship is a new record.
  • @YourOneNOnly_
    The reason why esports is failing is because it was never meant to be profitable, it was about the love of the game and competition that comes with it. It was great for bringing the community together once in a while to witness the top players go against each other at the highest level of competition. It was great for building an audience around the best and entertaining players, but it was never meant to profitable long term
  • @rickybrooks2971
    I think there’s an important connection in the US between cities and teams that is missing in e-sports.
  • @terrypham6406
    Great video, seeing esports dramatic growth from 2015-2018 was crazy to see. Really hope that people can work together and make esports profitable soon
  • @Roy-wf7id
    Its going to take sometime but I believe in about 5-10 years esports will get bigger and more profitable. The only reason it hasn't is because 90% of its viewership are kids and teenagers with no disposable income.
  • @TheBigAngryHobo
    I’m so grateful I was at the MLG Columbus Major in 2016 for CSGO as VIP. That was the most electrifying experience I’ve ever had. If only I could have seen cloud 9 win at Boston in person.
  • @isakahlqvist6888
    CS is a great example of an esports that is thriving on storytelling AND allows monetizing at the same time. The nature of the game allows almost anyone to succeed with the right group of players and a bit of good luck, almost every major some new team no one has heard of makes top 8. And combine that with the longevity of the game and the insane hype moments, you get an esports that’s really interesting to watch. I barely play and still watch almost every major qual games, especially if it’s a new team from my country or an old player finding redemption with a new team. Every year there’s a new cracked insane kid from nowhere that just immediately finds success as well. This combined with how skins and stickers work with team makes it a very stable and growing esports. Some teams even turn a profit from these skins and stickers (ENCE for example). While salaries are less stable and venture capital isn’t as lucrative (since it’s 100% tournament-based instead of a league), the esports is STILL growing and outperforming most other esports.
  • @alayerlp
    Not mentioning dota2 and it's organic growth and the battle pass was a missed opportunity to highlight a good eSports example
  • @Wozza365
    I'd say it's entering an age of maturity. The games that tried to force esports have basically all flopped and the only ones left are the "originals" or games where it wasn't forced. All those other games have moved onto the next big thing they think will make money. I think those original games will be here for a long time to come. CS has only just released a new game and i think will maintain strong viewership for a long time because of that and because it's actually a good game to watch. Overwatch by comparison was awful to watch even though it was a game i played a lot more than CS
  • @XigXags
    Great content all around, I will watch every video you put out now keep em coming.
  • @seoni2427
    Amazing video raising the pain points of the industry. It'd be interesting to see the different solutions proposed or otherwise implemented in a follow-up video, especially broadcasting as there is no actual "attendance" such is the case with filling football stadiums as well as the fact that the audience tends to be much younger and won't have the same purchasing power of traditional sport-goers. Maybe a case study on Riot's approach with Valorant as its new "flagship" esports expanding across multiple regions such as the pacific market, unlike CS, and franchise model that emphasize the actual organization rather than what the OWL did with say the SF shocks and LA gladiators. Lastly, if you guys could expand on the development of Starcraft and the off-hand approach Blizzard had with the scene in regard to its impact and growth would be great. A little recommendation in terms of strategy for future development of other esport titles and comparison with Majors seen in Valve games like Dota and CS relating to the incorporation of third-party organizers. Keep up the great work <3