Back when I was a kid, excessive gaming was frowned upon; today, it has evolved into not one, but two billion-dollar industries, which the entire world knows as e-sports and game streaming.
E-sports, the umbrella name for multiple competitive video gaming tournaments, is projected to be worth over $30 billion by 2036. To top that, game streaming, which is the live or pre-recorded broadcast of a game, is projected to be worth over $20 billion by 2030.
Numbers that huge raise two questions: why and how? The answer? Years of socioeconomic, cultural, and infrastructural developments. This article will explore all of these aspects by diving deep into:
Game on!
Exploring the Why Behind E-Sports and Game Streaming Growth
In any industry, there’s always a demand and a supply working together. This section explores the reasons that boost the demand for both the gaming industries under discussion. It’s most notable because of four major socioeconomic and cultural factors, which are:
Let me break down each in more detail.
Wide Availability of Internet Services
There are numerous online solo and multiplayer games, such as Rocket League (yes, my favorite), that are the focus of full-scale e-sports tournaments or those that people want streamers to walk them through. These games require a fast and reliable internet connection for the best experience.
While I’m not denying that we still have a long way to go in completely overcoming the digital divide, it’s also undeniable that the internet connectivity situation in America is gradually getting better. We now have all sorts of internet providers to cater to diverse speed, budget, or lifestyle-specific needs.
For example, we have fast fiber internet services like WOW! Internet across most of our urban cities, where speed is of the essence. Additionally, budget-friendly options like cable and 5G home (or mobile) internet can give an equal shot to gamers from low to middle-income households, while satellite internet can support those in remote areas.
Improved access to one of the most crucial foundational elements required for both these industries further fuels user participation and, in turn, their growth. This widespread availability also pairs well with our next point, growth in purchasing power.
Improved Purchasing Power
The internet was the first step. To break into the e-sports industry or start your own streaming channel, you also need a significant investment in tangible equipment and software for the best results.
For example, to perfect your skills for a particular e-sports tournament, some of the items one might need include a high-end personal computer (PC) or gaming laptop, a mechanical keyboard, a gaming chair, or a video editor subscription, to name a few, which collectively aren’t always very affordable.
On the bright side, stats from the U.S. Department of the Treasury show that since the pandemic, the purchasing power of the American people has gradually increased as wages have risen higher than prices. This reduces barriers to entry for both industries.
Financially speaking, it becomes a bit easier for gaming enthusiasts to arrange everything they need to perfect their gaming skills or smoothly stream and review games, leading to growth for both industries.
The Growth of Influencer Culture
Influencers are social media personalities with significant followings and influence to shape the perspectives of their followers, who often trust them more than celebrities or even the president.
The gaming niche has plenty of them across multiple platforms, such as YouTube, Twitch, or Discord, and many people who wish to start their own channels.
Why? Because if done right, it can be quite a lucrative career route with many income streams. For example, the creators of different games may try to partner with different influencers for sponsored streams, building hype.
Additionally, ad revenue, subscriptions, and affiliate marketing platforms can further enhance this income. When you put together increased purchasing power and wide availability of fast internet services, the gaming influencer lifestyle becomes a bit easier.
New Monetization Models
Beyond influencers, games themselves have a lot of built-in monetization methods for developers, and even for players, which leads to an increased creation of new games as well as a higher engagement with them.
For example, developers can make an income when players purchase in-game assets such as skins, weapons, and more, depending on the type of game it is. Additionally, the more players engage with a game, the more they may be rewarded with monetary benefits they can use to purchase real-life merchandise or discounts.
That about covers the demand side of things, now let’s take a look at all the supporting supply side factors booming both the e-sports and game streaming industries.
Exploring the How Behind E-Sports and Game Streaming Growth
The supply side covers all the ways that gaming experiences are being supported and improved. Most notably, these are:
Let’s explore each more deeply.
Gaming-Friendly Internet Packages
Gaming requires an internet connection to offer fast speeds, high bandwidth, and low latency. Considering the size of the gaming market, internet providers work to improve their network performance and make it affordable and easier for gamers to set up.
For example, many WOW! Internet plans offer symmetrical, multi-gig fiber speeds and low latencies that can instantly enact user inputs on the screen or smoothly live stream to their followers. Many providers may also offer bundle packages for gamers looking to perform more than one activity.
New Gaming Models
There might not be such a thing as a free lunch, but there is definitely such a thing as a free game. Free-to-play games are games that gamers can download, install, and play for free.
These games make an income using the monetization models shared above. Why this works is because once a gamer is invested in the game, they’re more likely to make a purchase of in-game assets.
Another new gaming model is cloud gaming, which makes gaming more accessible and affordable for players of all backgrounds. Instead of paying a significant upfront fee or buying expensive hardware, players can subscribe to a cloud gaming service such as NVIDIA or Xbox.
Advanced Technologies
Gaming is one of the biggest beneficiaries of many current advanced technologies, and possibly many future ones. For example, artificial intelligence and machine learning are used to improve and personalize user experiences by creating more intelligent NPCs and adjusting difficulty levels.
Two more major technologies powering gaming experiences are virtual and augmented reality, which can create hyper-realistic virtual environments or bring in-game elements into the real world.
E-Sports & Game Streaming – Billions of Fans & Dollars
There you have it, folks, a complete breakdown of why e-sports and game streaming are two of the largest industries in the world right now. But the game’s far from over.
As technologies like 6G emerge into the gaming scene, internet providers may upgrade their infrastructures to support it, leading to smoother experiences and further participation.
As long as this participation is being fueled, the growth of both these industries knows no bounds.
