Dinsmore and Sepso agreed that the industry is currently in a phase of right-sizing as it seeks a sustainable business model. However, they acknowledged that esports competitions still have a significant impact. Dinsmore mentioned that EA views esports primarily as a marketing tool, as it effectively engages the most dedicated players who spend the most on games. Additionally, esports helps EA re-engage lapsed players and educate new ones on improving their skills.
While it may be challenging to directly attribute outcomes to esports, EA’s analysis indicates that gamers who participate in competitions spend two to five times more than those who don’t. Sepso emphasized the value of capturing people’s attention in a world full of distractions.
Supporting the growth of the esports community is crucial for its long-term success. EA and ESL Faceit Group have taken various steps to assist aspiring competitors. EA’s esports titles, such as Madden, EA FC, and Apex Legends, have open events that allow all players to participate and potentially make it to the big stage. Madden even crowned its first millionaire champion at Super Bowl LVIII. The industry has also moved towards a hybrid ecosystem that combines the benefits of open amateur events with stable, franchised leagues.
Partnerships between publishers and tournament organizers play a significant role in expanding esports programs without incurring additional costs. These collaborations provide flexibility, technical expertise, and resources that benefit players, fans, and business objectives.
Professional teams also play a crucial role in the esports ecosystem. EA FC partners with real-world football clubs, while Sepso highlighted the Esports World Cup Foundation’s Club Support Program. However, teams themselves bear the responsibility of sustaining and growing their businesses.
Looking ahead, both EA and ESL Faceit Group are focused on cultivating the next generation of esports fans by reaching out to different communities. EA FC and Madden collaborate with their real-world sports counterparts, while ESL Faceit Group designs events like DreamHack to welcome diverse cultural communities.
Moreover, ESL Faceit Group is expanding its presence in the Middle East. Savvy Games Group, funded by Saudi Arabia’s Public Investment Fund, acquired and merged with the esports conglomerate in 2022. This summer, ESL Faceit Group will organize the first-ever Esports World Cup outside of Riyadh. Sepso highlighted the potential of the Middle East market, with over 60% of the population being under 30 and avid gamers. The Esports World Cup in Riyadh will inject capital into the ecosystem and expose the region’s fan base to international esports events.
In conclusion, the esports industry is going through a period of transformation as it seeks a sustainable model. Publishers like EA continue to invest in esports as a powerful marketing tool that engages their most dedicated players and drives revenue. To support the growth of the esports community, open events and franchised leagues coexist in a hybrid ecosystem. Partnerships between publishers and tournament organizers are crucial for expanding esports programs, while professional teams play a vital role in sustaining themselves. Looking ahead, publishers like EA and ESL Faceit Group aim to cultivate the next generation of esports fans by collaborating with different communities and expanding into new markets like the Middle East.
