Finding your pot of gold in e-sports

[co-author: Eng Han Goh]

The growth of e-sports in recent years has seen a rapid increase in e-sports tournaments prize money and a greater variety of unique prizes available for players to unlock in-game. E-sports is more than a virtual platform for existing sports – it is a way to unlock that pot of gold for some to earn a living and for others to commercialize gaming on an unprecedented scale.

Multiple operating models

As e-sports is in a relatively nascent stage of development, there are several possible operating models that stakeholders can use for successful commercialization. On one end of the spectrum, game studios can organize e-sports tournaments entirely in-house and fund tournament prizes. This gives the game studios greater control over the use of their game and how the tournament is run.

On the other end of the spectrum, a start-up or even an association or society can partner with game studios and sponsors while focusing on the event management aspect of e-sports tournaments. This allows the organizer to develop expertise in managing tournaments, which can be applied across multiple e-sports. This flexibility is seen in the growing number of e-sports associations around the world and collaborations between some of these associations to tap into each other’s strengths. It is important for e-sports stakeholders to identify the model best suited to their objectives.