Appendix G Esports

Esports (electronic sports) involves organised, structured, and competitive playing of video games, often in an online or physical spectator space. Esports have become one of the most rapidly growing forms of new media driven by the growing provenance of online games and online broadcasting technologies

Ukie, the trade body for the UK games and interactive entertainment industry, reports that the UK Esports sector generated £111.5million in Gross Value Added in 2019, supporting 1,200 jobs. The UK Esports sector has grown at an annual average rate of 8.5% between 2016 and 2019 and represents just under 8% of the global market. By 2023, the UK gaming sector is expected to reach £10bn and employ 80,000 people.

Whilst traditional entertainment industries faced significant uncertainty during the Covid-19 pandemic, the digital and gaming sector bucked the trend and experienced high levels of growth. At the end of Q1 2020, digital downloading increased by 67% weekon-week, while physical game sales increased by 218%. Considering the blanket lockdown many parts of the world have experienced, it is hardly surprising that the digital and gaming sector which people can access from the safety of their own homes has been a beneficiary of the pandemic, particular as an important facet of the gaming industry in the internet world is communication and being able to connect with likeminded people all over the world.

The growth in Esports can be attributed to the growth and popularity of social media platforms such as Twitch which enables users to broadcast themselves gaming. A wide-ranging community has sprung up around gaming and growing audiences generate advertising and sponsorship revenue which has allowed many gamers to go professional and earn a living by playing and streaming games.

Driven by games like Fortnite, which has 250 million registered users, online gaming participations are rising year on year. Over the last 5 years, online gamers have increased in number from 1.5 billion to 2.5 billion. Richard Blevins, known in the online community as ‘Ninja’, is one such Fortnite gamer. Blevins has over 24 million subscribers on YouTube, and his YouTube channel has been viewed collectively over 2 billion times. The 2019 Fortnite World Cup carried a $30 million prize pool and took place at New York’s Arthur Ashe Stadium. An estimated 2.3 million viewers watched the final on Twitch and YouTube.

The growth in Esports has implications for real estate, with a growing number of companies requiring an increasing amount of office floorspace. More than this, Esports is finding its feet on the high street and contributing to the re-vitalisation of centres, and larger scale venues and tournaments will require food and beverage and leisure facilities just as traditional music or sporting events do.

As with traditional major sporting tournaments, Esports can attract a significant volume of spectators from other regions and countries who may only be visiting that destination because of their interest in esports. There were an estimated 42,000 attendees to live esports events in the UK in 2019. Esport events in the UK include:

Esl Uk

ESL UK was established in Leicester in 2012. It runs major esports events such as ESL One Birmingham that attract tens of thousands of attendees and millions of viewers online, as well as providing production services to brands. ESL UK is the lead partner in the Weavr consortium, backed by the Government's Audience of the Future Challenge Fund. The consortium is building a technology platform to revolutionise the viewing experience for both esports and traditional sports.

Gfinity

Gfinity is a London-based esports solutions company that exports services around the globe. Gfinity opened the UK's first dedicated esports arena in 2015 in partnership with Vue. Gfinity has operated events ranging from the ePremier League through to F1 Esports Virtual Grand Prix series.

Epic.LAN

Epic.LAN is a traditional UK based Bring Your Own Computer (BYOC) event organiser. With a history spanning more than a decade, it is a mainstay of the UK's grassroots esports scene. Epic.LAN's events have grown, and now host hundreds of attendees three times a year. These events boost local economies, with impacts on hotels and restaurants.

The interactive and versatile nature of the industry means that a rise in the number of video arcades, concept stores, and Esports arenas. Virtual reality arcades, like X-GENVR’s offer in Stockport’s Merseyway Shopping Centre, offer a range of virtual reality games and experiences where users can enjoy the latest virtual reality experiences or hire private rooms to share experiences whilst friends / family can use the room to view.

Wanyoo, established in 1998, is the world’s largest esports studio chain. It operates more than 1,000 stores in over 50 cities and has over 10 million members worldwide. Wanyoo is most popular in China but it also has branches in America, Singapore, Australia, the UK and Canada. The company serves approximately 30 million people per year. Wanyoo’s presence in the UK at present is limited to London and Coventry but its global success is a testament to the thriving gaming industry and a clear sign of the industry’s potential.

Wanyoo, and other comparable operators such as Platform, have embraced the value of placemaking and boast an all-round entertainment offer with banks of PCs ready to be played, giant 120 inch projectors and viewing areas for esports tournaments, private rooms to share gaming experiences with friends, along with a food and beverage provision.

The potential for Esports to make significant contributions to local economies is clear, particularly as a relatively emerging industry it is subject to less direct competition. With its holistic entertainment offer and emphasis on community, it has the potential to be an important player on the UK high street and rival other more traditional entertainment provision.