26 minute read
The Business of Esports
from July 2019
The Business of Esports
Advertisement
While we weren’t looking, video gaming grew into something called esports—a professional sport complete with well-paid players, huge fan followings, sold-out arenas, lucrative sponsorships and hefty tournament payouts.
For video game developers and publishers, esports functions as both marketing expense and operating income. Esports can keep the general public engaged in video gaming and willing to spend more on games.
Today’s dominant video game, League of Legends (LoL), was developed by Riot Games, which was purchased by Chinese tech giant Tencent in 2011. LoL uses five-player teams who control characters with differing abilities and attributes The goal is to push into the opposing team’s base and destroy it. Because each game takes place on the same map, fans can easily follow what’s going on and every game offers a balanced playing board.
Live tournaments fill huge stadiums like the Staples Center in LA and Seoul’s World Cup Stadium. Prize pools often reach eight figures, and big-name sponsors like Samsung, Red Bull and Coca Cola, pony up for advertising. Esports tournaments also attract tens of thousands of fans, and millions of online viewers.
To lead off this special luckbox leans in report, the editors joined forces with Newzoo, a leading global provider of esports analytics, to provide an introduction to the opportunities that lie ahead in the fast-growing world of competitive electronic gaming.
Newzoo:
Amsterdambased Newzoo, a leading global provider of games and esports analytics and research, provides esports market insight and data to the world’s largest entertainment, technology and media companies. The firm specializes in daily consulting on investment, marketing, sales and product development.
KEY TERMS
Esports: Professional-level competitive gaming in an organized tournament or league with a specific goal, such as winning a championship title or prize money.
Streaming: One person, or sometimes a group of people, streaming live video via a streaming platform to enable viewers to see what’s happening at that moment.
Media Rights Revenues: Revenues generated through media property, including all revenues paid to industry stakeholders to secure the rights to show esports content on a channel. It includes payments from online streaming platforms to organizers to broadcast their content, foreign broadcasters securing rights to show content in their country, or copyright costs to show video content or photos of an esports competition.
Sponsorship Revenues: Revenues generated by teams and organizers through sponsorship deals. This includes all deals relating to sponsoring an event, including product placement, sponsoring teams, and payments by brands for the use of team, event or game-specific IP rights in their marketing communications. Any advertisements sold as part of a sponsorship package are also included in sponsorship revenues.
Game Publisher Fees: Revenues paid by game publishers to independent esports organizers for hosting events. This excludes investments or spending by game publishers on their own events because that is considered part of their regular marketing effort.
The final match up at the Mid Season Invitational of League of Legends 2015 Season, held in Tallahassee, Fla.
Wagering On Esports
Esports betting resembles traditional sports wagering, which has long been a fundamental part of that industry. In particular, esports betting in the United States is on track to grow significantly because some states are legalizing betting for certain sports, including esports.
Fantasy drafting is gaining popularity with fans, and Riot Games offers it for free in connection with its major leagues and World Championship event. Esports organizations appear ready to provide incentives for fantasy drafting by offering rewards, such as in-game currency and cosmetics. In addition, betting operators will continue to expand their sponsorship and will offer more forms of esports betting, such as liveaction betting on results (bookmaking).
Newzoo predicts fans’ collective spending on esports betting will soon surpass their spending on esports merchandise and tickets.
Key Takeaways
2019 Global esports revenues will surpass $1 billion for the first time
1. Global esports revenues will grow $1.1 to billion in 2019, a year-on-year growth of +26.7%. North America will generate $409 million of this amount, while China will account for $210 million.
2. In 2019, $897 million in revenues, or 82% of the total market, will come from brand investments (media rights, advertising and sponsorship). That will increase to $1.5 billion by 2022, making up 87% of total esports revenues.
3. Globally, the total esports audience 3 will grow to 453 million in 2019, a year-on-year growth of +15.0%. Esports Enthusiasts will make up 201 million of this number, growing +16.3% year on year.
4. China will have the most Esports Enthusiasts in 2019 with 75 million, followed by the U.S. and Brazil. South Korea will have the highest share of Esports Enthusiasts relative to its online population (Esports Density) in 2019 with 12%.
5. The global average revenue per Esports Enthusiast will be $5.45 this year, up +8.9% from $5 in 2018.
6. Last year, 737 major events occurred. Together, they generated $55 million in ticket revenues, down from $59 million in 2017.
7. Last year’s total prize money reached $151 million, a significant increase from 2017’s $112 million.
8. The League of Legends World Championship was last year’s biggest tournament by live viewership hours on Twitch—a livestreaming platform for gamers—with 53.8 million hours. It also produced $1.9 million in ticket revenues. The Overwatch League was the mostwatched league by live viewership hours on Twitch, generating 79.5 million hours.
Global Population: 7.7B
Online Population: 4.1B
Esports Enthusiasts: 201.2M
Esports Revenues: $1.1B
Annual Revenue per Enthusiast: $5.40
Top 10 Gaming Stocks
THE TOP 25 PUBLICLY TRADED GAME COMPANIES EARNED MORE THAN $100 BILLION IN GAMING REVENUES
Last year, the 25 public companies with the largest game revenues generated a combined $107.3 billion, up +16% from 2017. That marks the first time they have exceeded the 100-billion-dollar mark—a milestone for the market. Together, those companies accounted for nearly 80% of the $134.9 billion global games market.
Tencent (TCEHY) alone earned $19.7 billion in revenues, accounting for nearly 15% of the entire games market, and it was the world’s No. 1 public company by game revenues for the sixth year running. Tencent is followed by Sony (SNE), Microsoft (MSFT), Apple (AAPL) and Activision Blizzard (ATVI), respectively. Combined, the Top 10 companies grew +19% year on year. However, the top 11-25 companies together grew just +6% year on year, with many companies in this bracket unable to keep pace with the market leaders.
Apple and Google’s New Gaming Market Plays
Apple (AAPL) and Google (GOOG) have long monetized video gaming. The consistently strong performance of those two American tech giants is a direct result of revenues generated by their respective app stores, where both take their cut of every transaction. Now, both companies have revealed initiatives that will expand their involvement in the global games market.
Google has recently announced Stadia, a cloud gaming platform that enables users to stream entire games via the internet. The games run on hardware at Google’s data centers, which means consumers don’t need to own expensive hardware. At the same time, Google announced the creation of Stadia Games and Entertainment, a studio that will develop Stadia-exclusive games. (see p.26)
Meanwhile, Apple plans to release Apple Arcade this year. The subscription service gives users access to a library of 100 new games for a monthly subscription fee. The platform will carry no ads and no in-app purchases—key drivers for growth in the games market in past years.
Both companies have acquired top talent from the games market but have remained quiet about expansion plans. Both intend to use their strengths to expand their activities in the games market: Google leverages the global presence of its data centers and strong tech credentials, while Apple will rely on its expertise in accessibility and its focus on curating content.
Jurre Pannekeet, senior market analyst at Newzoo, models the esports economy, finds and dissects key esports trends and helps brands shape esports strategies. Sander Bosman, Newzoo vice president of research, is the company’s second-ever employee and leads the Consumer Research and Insights team. newzoo.com @newzoohq. Tom Wijman, Newzoo senior games market analyst, leads the company’s efforts on the global games market, forecasting revenues and players per market and identifying how trends influence those markets. @newzoohq
Follow the Money
FINANCIERS, ENTERTAINERS AND PROFESSIONAL ATHLETES ARE INVESTING HEAVILY IN ESPORTS
By Rocio Villasenor
In 2018, angel investors, venture capitalists and sponsors injected $682 million into esports.
-Newzoo
In late May, Peak6, the Chicago private venture investment and trading firm, acquired Evil Geniuses, a premier global esports team that’s among the most recognized brands in professional gaming. The acquisition, whose details were not disclosed, adds Evil Geniuses to Peak6’s portfolio of traditional sport-related brands and businesses, which includes three European soccer teams, a U.S. pro hockey team, and several sports technology holdings.
Celebrity-rapper Sean “Diddy” Combs joined a group of investors that put $30.5 million into PlayVS.
Wes Edens, co-owner of the Milwaukee Bucks, and Pete Briger, chairman of Fortress Investment Group, have invested in FlyQuest, a franchise in the League of Legends Championship Series and competitor in the Fortnite World Cup.
Ashton Kutcher became a successful venture capitalist in the early 2010s. Since then, he has invested in tech companies directly or through his Sound Ventures company, putting money into Airbnb, Skype and other businesses that focus on digital commerce. He’s a big investor in Unikrn, an esports cryptocurrency betting platform that recently became a more solid investment when it attained a full gambling license from the Isle of Man.
Shaquille O’Neal is putting time and money into NRG esports, which operates the San Francisco Shock in The Overwatch League.
Michael Jordan is an investor in aXiomatic, an esports ownership group that owns the popular and the accomplished Team Liquid.
EDM musician, DJ and producer Steve Aoki had invested in the Rogue Gaming esports team, which was then acquired by Rekt Global. The team is active in six esports titles, including Fortnite.
In 2017, Jennifer Lopez, invested in the NRG esports brand.
Athletes Steve Young, Stephen Curry and Andre Iguodala joined a $37 million investment in esports Team TSM.
Besides owning the Dallas Mavericks, Mark Cuban is a key investor in Unikrn, a cryptocurrency-enabled esports betting company.
Canadian hip-hop artist Drake has invested $25 million in 100 Thieves, a top-ranking esports company.
Kevin Durant and Odell Beckham Jr. joined a group that put $38 million into Vision Esports.
Tony Robbins, whose net worth is pegged at $500 million, has joined Magic Johnson on the investment team that bought Team Liquid.
As the Esports Audience Grows, So Do Valuations
To illustrate the rapid and widespread adoption of esports, luckbox provides analysis and investment perspectives from Konvoy Ventures, a venture capital firm that invests in earlystage companies in esports and video gaming
By Josh Chapman
The DreamHack 2015 tour drew a massive crowd at a stop in the Romanian city of Cluj-Napoca.
Video Gaming: The Next 1 Billion Players
The cost of gaming via PC or console is decreasing, which should fuel adoption and boost esports
Video gaming is heating up around the world. In fact, more than 2.3 billion people are playing and more than 380 million watch esports. Consumers are spending more discretionary income on digital entertainment while the price of video gaming equipment is decreasing. It’s a combination of trends that should result in continued consumer adoption and accelerating monetization of the global video gaming industry.
Meanwhile, video gaming is becoming more socially acceptable for players in a variety of age groups. That not only includes today’s teenagers and millennials but also the “Atari Generation.” About 43% of mobile gamers are parents who continue to play as adults. Additionally, it’s not only men that play video game—women account for 45% of gamers and 30% of esports viewers in America.
At the same time, the lower cost of playing seems likely to entice more people into taking up video gaming.
PC and console costs
Players have two hardware options for video gaming: personal computers or gaming consoles. Console gaming largely revolves around Playstation form Sony (SNE) and Xbox from Microsoft (MSFT). Switch from Nintendo (NTDOY) lags far behind in third place. Playstation 4 has sold 75 million units, Xbox One has sold between 30 million and 50 million, and Nintendo Switch has sold 17 million.
PCs offers better visuals, a greater number of indie titles and more affordable games, but are substantially more expensive to buy than consoles, according to GamingScan, a website that carries product reviews.
Here’s the bottom line: In the past, owning a quality gaming PC was significantly more expensive than playing ona console. Today, that gap is quickly closing thanks to lower manufacturing and hardware costs.
Spending more on entertainment
While average income has decreased recently by 1.5% in the United States, according to the Bureau of Labor Statistics, entertainment spending has increased by 10%. Despite making less money, Americans still choose to spend more of their discretionary income on entertainment.
The narrowing price gap between console and PC gives consumers more options that they can afford. This trend appears likely to continue, especially as production costs of hardware decline and the rise of cloud gaming ensues. Once cloud gaming becomes ubiquitous, gamers won’t need to update hardware as regularly to fully experience any game.
From 100 million players in 1995 to 2.3 billion today yields a 14.38% compound annual growth rate— the next 1 billion gamers are close at hand.
Esports Prize Pools Are Growing Fast
Gaming tournament rewards now rival the size of some of the largest purses offered to winners in traditional sports
Esports pros are reaping the benefits of dramatic increases in prize money. In 2010, the total esports prize pool for almost all events in every tracked title totaled about $3 million. In stark contrast, esports paid $156 million in prizes last year.
Compensation for esports athletes resembles that of golf and tennis. Those sports lack the high salaries of basketball, hockey, football, soccer and baseball but pay off in lucrative prizes, sponsorships and endorsements.
In 10 years, esports pros may see changes in compensation as high salary and more multi-year contracts. With that trajectory, esports prize pools and athlete compensation may quickly compete with the top traditional sports athletes in the not-so-distant future.
Below is a list of the Top 10 events of 2018 by prize pools. Two of the biggest prizes were in esports: The International 2018 (Dota 2) and League of Legends World Championship.
TOP 10 PRIZE POOLS BY EVENT
A win is rewarded at the 2018 World Championship Finals at the Incheon Munhak Stadium in Incheon, South Korea.
Traditional Sports:
World Series: $66,000,00
US Open-Tennis: $53,000,000
FedEx Cup: $35,000,000
Dubai World Cup Night: $27,250,000
US Open-Golf: $12,000,000
The Masters: $11,000,000
Super Bowl:$9,200,000
Stanley Cup: $7,000,000
Esports:
The International: $25,500,000
LoL World Finals: $6,450,000
Today’s Esports Team Valuations = NBA Teams in the 1980s
Today, every NBA team is worth more than $1 billion. Esports teams could reach similar heights, perhaps even more, in the near future. History is repeating itself, but more quickly this time
Esports teams are attracting investments of about the same size as NBA teams of the 1980s. Examples include Cloud9 raising $50 million, TSM raising $37 million, and Team Liquid raising $25 million.
In the 1980s, 15 NBA teams were purchased in whole or in part ranging from $9.8 million for the Houston Rockets in 1982 to $120 million for the Boston Celtics in 1986. Those figures are similar to the $37M average for top esports organizations today.
Two significant outliers occurred among the 1980s NBA transactions: Portland and Boston. They alone increase the average by nearly 50%. Adjust for inflation and remove those two from the table, the average NBA franchise investments were within 5% of the three most notable recent investments in esports organizations.
When those NBA transactions were completed, teams were valued from $10 million to $120 million, and today every NBA team is worth more than $1 billion. Most of the value appreciation can be attributed to technological advances that have brought wider viewership, which in turn has created lucrative media rights deals for the NBA and its teams. That’s important because esports franchises already have the viewership, and today’s digital distribution platforms will enable rapid audience acquisition and adoption. With more viewership comes more rich media deals.
The esports audience
Esports team franchises appear inherently lucrative because of their global digital audience. The NBA audiences in the 1980s were predominantly based in the United States and the teams couldn’t develop widespread, loyal fan bases abroad.
Global potential should help esports franchises appreciate in value at a materially faster rate than the NBA franchises from the 1980s. They have comparableaudiences; considering the Overwatch League’s 10.8 million viewers today versus the NBA’s 13.2 million viewers in the 80s.
Another reason for esports teams to appreciate in value is the age of their fans. The average NBA viewer is 42 years old, but according to Nielsen, the average age of esports viewers is 31 and 61% of viewers are millennials.
These factors should drive the appreciation of valuations because those viewers have grown up not only watching esports, but also continue playing as they get older. With traditional sports, the majority of the viewers are just fans—even if they played the sport when they were younger they probably are not playing regularly years later.
Millennials have a lasting affinity for the video games they grew up playing (and still play today) because they enjoy the exact same game at a high level of competitiveness. This dynamic is going to keep them engaged for years. It’s similar to golf, which players continue to enjoy for a long time. The same will be true for the younger Gen X and Gen Z demographics.
History is repeating itself… but faster. Esports could do in five to 10 years what took the NBA over 30 years to achieve.
Josh Chapman is managing partner at Konvoy Ventures, a Denver-based venturecapital fund specializing in esports and video gaming. @joshchapmn
Esports teams will reach $1 billion valuations more quickly than NBA teams:
-Early-stage team transaction values are similar
-Digital platforms for esports will drive audience acquisition more quickly than NBA franchises
-The asset value appreciation timeline will be much faster for esports than NBA valuations
ESPORTS TEAM VALUATIONS: BACK TO THE FUTURE
In millions, adjusted for inflation
Esports Teams:
Team Liquid: $25
Team Solomid: $37
Cloud9: $50
Avg. Deal: $37.3
Young Money
WITH ESPORTS PRIZE POOLS IN THE MILLIONS, WHERE DOES THE MONEY FLOW? MEET A PAST AND PRESENT PRO
By Ed Mckiney
This Med Student spent his gap year as an esports pro.
After devoting a gap year between high school and college to playing StarCraft II professionally, Conan “Suppy” Liu, aka “Superiorwolf,” went back to the books, completing a bachelor’s at the University of California at Berkeley.
But he didn’t stop there. Now, he’s studying medicine at Sidney Kimmel Medical College of the Thomas Jefferson University in Philadelphia.
When it comes to meeting the high cost of so much education, it can’t hurt that Liu racked up $75,000 in prize money during his pro esports days, having his best year at age 19.
A seasoned pro with upside mo
Young, inexperienced professional gamers can fall victim to unscrupulous organizations looking to make a quick profit in esports, says highly ranked StarCraft II player Alex “Neeb” Sunderhaft. “Being mistreated as a player is fairly common,” he maintains. “I’m being paid fairly, for sure, but not all players are.”
Understandably, teenaged pros generally don’t have much previous experience of the world when they hit the big time, Sunderhaft, notes. “I’ve never worked a conventional job in my life,” says the 21-year-old who’s been making his presence felt on the professional scene since age 16.
Nefarious teams can take advantage of such inexperience, some observers claim. One young pro, Turner “Tfue” Tunney, recentlysued Team Faze Clan for allegedly limiting his business opportunities, appropriating a huge share of his earnings, and encouraging him to gamble and drink underage, according to published reports.
But Sunderhaft reports that he hasn’t experienced the fate described in Tenny’s headline-making lawsuit. “My sponsor, (mobile networker) Ting, has been easy to work with and reliable regarding salary,” Sunderhaft says. In the past four to five years, he’s reportedly earned just shy of $440,000 in 156 tournaments.
That degree of success required extraordinary measures. After graduating from high school Sunderhaft skipped college and moved from New York to South Korea to hone his skills on StarCraft, because that’s where that game’s played with particular intensity.
“I practice three to four hours a day, which is standard for StarCraft,” Sunderhaft says of his current regime. “I’d imagine the very popular games have players with strict practice schedules to optimize their entire day, just as StarCraft did when it was at its peak about eight years ago.”
Looking to the future, Sunderhaft plans to “simply enjoy StarCraft for as long as it stays a viable esport.” But he doesn’t blame other professional video game players for dreaming big. “Esports offers endless opportunities for ordinary people,” he says. “I’ve been grateful ever since I started almost 10 years ago.”
The Next Generation of Gamers
THE OLD GUARD OF PRO GAMERS (THE 20-SOMETHINGS) HAVE ENJOYED BIG PAYDAYS, BUT A CROP OF YOUNG TALENT IS RISING UP BEHIND THEM
By Ed McKinley
The timing must have been right for the High School Esports League. In a few short years it’s grown into a national movement with 50,000 players in clubs at more than 1,800 schools in North America.
The phenomenon is continuing to build momentum as some schools elevate their esports clubs to fullfledged varsity sport status, says Mason Mullenioux, the league’s CEO.
It all began with an origins story that belongs in a time capsule. Mullenioux and his childhood friend Charles Reilly were searching for their place in the world after graduating from Old Mizzou (the University of Missouri at Columbia) in 2010. They were set adrift as the nation suffered through the third year of the Great Recession.
“No one could find a job anywhere,” Mullenioux recalls. “We were delivering pizzas for Papa John’s, and we both lived with our parents. When we got off work we’d go over to Charlie’s house and think about what we were going to do.”
The only plan they devised that actually appealed to them was launching an esports league for high school players. So, they started the league in 2012 as an unpaid hobby. They soon found high schoolers had a lot of interest, so they kept at it.
In the meantime, both found substantial jobs. Mullenioux began working as a project manager for Sprint, and Reilly managed the parts department at a Subaru dealership. But passion prevailed, and in a few years the league grew into a business based in Kansas City. When they found themselves taking too many league-related calls at work, they quit their day jobs and devoted themselves to the league.
Schools face off in a recent Call of Duty Regional Championship competition in Schenectady, NY.
Probably because the timing was so right, Mullenioux and Reilly soon discovered that someone else was doing exactly the same thing at the same time and giving it the same name. Half a continent away in San Francisco, Aaron Hawkey also had started a league. Instead of competing, the three joined forces, with Mullenioux becoming CEO, Reilly taking on chief operating officer duties and Hawkey serving as chief technology officer.
They raised money from friends and family to build a tech platform, and by 2016 the technical backbone was in place and the time had come to begin charging for league membership. But the fees weren’t just a profit center, according to Mullenioux. “We needed the students to take it seriously,” he says of the league’s early days. “They needed to have skin in the game to finish the season.”
Now, the league’s 15 full-time staffers are scattered across the nation in Kansas City, San Diego, San Francisco, Texas and Maine. The five part-timers and the volunteers are similarly decentralized. The geographic diversity came about by chance but has worked to the league’s advantage because its officials can travel conveniently to conventions anywhere in the country.
But the staff can’t do it all alone. The league stipulates that a teacher or coach from each school must take responsibility for the league’s club. Each school also has to supply written approval of the club as a recognized school activity.
About 85% of the league’s players belong to school-sanctioned clubs, and students at schools without clubs canjoin free-agent leagues. The free agents often help start clubs at their schools, Mullenioux notes. More often than not students launch the clubs. “They know who the cool teacher is,” and can enlist help. Some teachers become enthusiastic, and that leads to the highest success rate, Mullenioux says. Those teachers “seek students, make morning announcements and pass out fliers,” he adds.
The league can charge teams or students to participate. Students can pool their membership applications to qualify for discounts. Sometimes school budgets cover the fees. The league charges players $30 per season, which is less than competing organizations collect, according to Mullenioux. Overwatch and League of Legends are two of the most popular games at the moment, he observes. Nine games are available for league play, but the league tests new games during the slow seasons and adopts them if they prove popular.
Clubs have formed at schools in all types of places, but suburban schools have been most likely to join the league, Mullenioux says. Rural locations may lack good internet connectivity and have long travel times to matches. Inner city schools and students may lack the funds. The league is setting up a not-for-profit organization to help underwrite the costs for schools and students in need.
So far, high school and college esports teams aren’t attracting the huge viewership that pros generate. A few friends and family members typically watch high school esports matches, but the competitions don’t attract the cheering crowds that pack the stands for football or basketball. “We’ re going to get there,” Mullenioux predicts, “but it will take a little more time.”
How much more time? In three to five years a significant number of high schools will field varsity esports team and will attract heavy viewership, Mullenioux says. That should generate enough excitement to take high school esports to the next level, he maintains. A few schools have already established esports arenas, and some states have taken steps to become sanctioning bodies.
Outstanding competitors in organized high school leagues can attract the attention of college recruiters at schools that offer esports scholarships. “All the college eyes are on us,” Mullenioux maintains. “There are scholarships out there that are unfilled because they can’t findkids to come play.” Colleges are also seeking streamers, commentators, club managers and assistant coaches. Filling those roles will become easier as high school esports becomes ubiquitous, he predicts.
Fast Times at Bay Shore High
At most high schools, the quiet kid who aces AP calculus might never have a conversation with the star quarterback. But at Bay Shore High School on Long Island, that unlikely duo just might become friends after discovering they both play StarCraft.
It’s something that happens in the school’s video game club, which was designed with a community side as well as a competitive side, says Ryan Champlin, a senior who’s credited with organizing the club two years ago.
The club’s competitive side has scored some wild successes, too, with the Call of Duty team going undefeated in North American competition and the Rainbow Six team occupying a spot in North America’s Top five teams since its inception.
One Bay Shore student, 17-year-old Justin “jstn” Morales, can’t compete on the school’s teams because he already plays professionally for the powerhouse NRG squad. He’s been bringing home serious prize money while remaining admirably humble, Champlin says. (Morales has earned $76,854 in prize money in 11 tournaments, according to the Esports Earnings website.)
Ryan Champlin solicited help from family and friends to start a gaming club at his school.
Every senior in the club has received a college esports scholarship offer, Champlin notes. “To a school in California I was actually given an athletic scholarship—same as basketball, lacrosse, football,” he maintains. “I was regarded as an athlete for esports, which is absolutely crazy!”
More than 160 club members participate in sanctioned competition, but many others drop into the club facilities simply to play games. Sponsorships have financed a fully equipped gaming arena where team members play sideby-side and face off against opponents across the room. “That makes it more like a sports event that’s easier for adults to grasp,” Champlin says of the face-to-face encounters.
Fortnite: An Epic Blockbuster
Tim Sweeney started Epic Games, parent of Fortnite, in 1991 by commuting 30 minutes each way from his University of Maryland dorm to a makeshift office in his parents’ garage. Fortnite became the world’s most popular game last year, growing the company’s valuation to $15 billion.
Fortnite popularized the “Battle Royale” category—a 100-player elimination format that evokes The Hunger Games.
A million players tried “Battle Royale” on the category’s first day—Sept. 26, 2017. In two weeks, 10 million were playing.
Today, Fortnite has more than 250 million registered players around the world, according to Epic Games.
Epic Games grossed $3 billion profit last year, according to TechCrunch.
Nearly 70% of players made in-game purchases, with the average value of $84.67 between July 2017 and June of last year, a LendEDU survey indicates.
Fortnite is free to play because Epic Games earns revenue when players make in-game purchases of costumes (“skins”) or dance moves that have no effect on player performance.
Epic CEO Sweeney reportedly amassed a $7.2 billion fortune by 2018, making him the 194th richest person in the Bloomberg Billionaires Index.
Epic Games is offering $40 million in prize money for the first Fortnite World Cup, which was scheduled to culminate July 28.
The company has pledged $100 million in total prize money for Fortnite events this year.
TOP 10 FREE-TO-PLAY GAMES BY REVENUE
1 Fortnite Epic Games: $3.0 billion
2 Dungeon Fighter Nexon (NEXOF): $1.5 billion
3 League of Legends Tencent Holding (TCEHY): $1.4 billion
4 Pokemon GO Niantic: $1.3 billion
5 Crossfire Neowiz Games: $1.3 billion
6 Honour of Kings Tencent Holding (TCEHY): $1.3 billion
7 Fate / Grand Order Aniplex: $1.2 billion
8 Candy Crush Saga Activision Blizzard Inc. (ATVI): $1.1 billion
9 Monster Strike Mixi (MIXIF): $1.0 billion
10 Clash Royale Tencent Holding (TCEHY): $0.9 billion
Meet the Ninja
Tyler Blevins, popularly known as Ninja, a pre-eminent Fortnite player with neon-colored hair, told CNN he earned roughly $10 million in 2018.
In March of 2018, more than 635,000 viewers watched Ninja compete with rapper Drake on Twitch, setting a new record for the streaming platform.
Ninja, who’s 27, has become the most popular professional gamer in the world, with more than 22 million YouTube subscribers and 14 million Twitch followers.
Most popular esports games
Viewing hours spent on Twitch, 30-day period, as of April
1.
Fortnite 106,232,483
2.
League of Legends 95,563,475
3.
Dota 2 39,411,889
4.
Overwatch 30,639,347
5.
Hearthstone 29,978,633
6.
Counter-Strike 28,146,844
7.
PUBG 23,026,620
8.
World of Warcraft 20,296,887
9.
Apex Legends 17,971,621
10.
Mortal Kombat 11 9,632,486
Video games have become pervasive in the lives of most American teenagers and serve as a way of making and maintaining friendships. Fully 72% of all teens play video games on a computer, game console or portable device like a cellphone, and 81% of teens have or have access to a game console.
—Pew Research Center, May 2019
To see more click the link below!
