Meanwhile, almost all of the start-ups built around the supposed esports ecosystem have floundered or shut down. For all the excitement around esports since 2014, most teams are struggling - trapped in a vicious cycle of underperforming revenues, too-high valuations, and losses that make it impossible to invest in growth.
But esports overall was in desperate need of such a shock, too. This is obviously good for the ecosystem. And in 2020, 2021, 2022 and forever after, there will be more revenue, more funding, more viewership, and better distribution as a result. As a category, it has been popularized and legitimized in an unpredictable and profound way. However, the novel coronavirus will have permanently increased esports’ overall economic and cultural trajectory. As COVID subsides, esports fervor will recede, ratings will drop, and revenues will reduce. Furthermore, today’s popularity is not immediately sustainable, either - nor is its growth rate. Gaming, game broadcasting, and professional gaming have been growing in revenue, reach, and relevance for years. Instead, it’s an acceleration of long-running trends. This mix of new-found distribution, ratings, and support, in turn, has led to many blue-chip giants to begin advertising in professional gaming competitions after years of disinterest. Similarly, many “real” athletes in the NBA, UEFA, and NASCAR have recently participated in and praised professional esports. This coverage has meant that viewership for almost all esports titles are at record highs - in part due to the category’s (perhaps reluctant) embrace by previously “IRL-only” sports fans. Those with a history of esports programming, such as ESPN, are airing an unprecedented amount of esports content - in some cases, more than 14 hours per day. Many of these same networks are airing live esports matches for the first time, such as the Fox broadcast network. Numerous games, from NASCAR to League of Legends, have received their first-ever appearances on major US broadcast and cable television networks. Under COVID-19, esports is having its moment.
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