Introduction to Esports

[Audio] Chapter 1 Introduction to Esports David P. Hedlund, R.C. Smith III, Gil Fried, Stanley Nana Anyang-Kaakyire, Sang-ho Lee, Michael Newhouse-Bailey, and Janelle E. Wells.

[Audio] Learning Objectives Explain the definition, history, and development of esports. Explain similarities and differences between traditional sports and esports. Identify various stakeholders within the esports ecosystem. Identify various esports platforms on which users play. Identify unique types/categories of esports games. Draw conclusions from research on the past, present, and future of the business of esports..

[Audio] Introduction Esports (electronic sports)––Numerous forms and types of video games played on various devices: Personal computers (PCs) Mobile devices (e.g., mobile phones, tablets) Game consoles (e.g., Microsoft Xbox, Sony PlayStation) Hybrid portable console devices (e.g., Nintendo Switch) Virtual-reality (VR), augmented-reality (AR), and mixed-reality (MR) devices.

[Audio] Evolution of Video Games to Esports One player playing on a computer or stand-alone arcade machine Two players playing on the same computer or stand-alone arcade machine Two or more players playing on different computers, yet connected together (e.g., Internet, local area network [LAN]) to play with or against each other).

[Audio] What Is Esports? The word “esports” describes many different activities. Recreational and competitive electronic video game play Electronic games played by both individuals and teams Games played on a single device or multiple connected devices.

[Audio] Is Esports a Sport? Multiple adding and evolving definitions of esports Wagner (2006): “an area of sport activities in which people develop and train mental or physical abilities in the use of information and communication technologies” (p. 439). Taylor (2012) and Witkowski (2012): Electronic nature of esports is the key difference from traditional sports. (continued).

[Audio] Is Esports a Sport? (continued) Jenny, Manning, Keiper, and Olrich (2017) compared sports and esports based on similarities and differences: Inclusion of voluntary or intrinsically motivated play Being organized and having rules Including competition (winner or loser) Based on skill (not chance), including physical skills and movement Broad following of players and fans Overarching institution that regulates and oversees the game Distinguishing between gross and fine motor skills (continued).

[Audio] Hamari and Sjöblom (2017): “a form of sports where the primary aspects of the sport are facilitated by electronic systems; the input of players and teams as well as the output of the esports system are mediated by human-computer interfaces” (p. 213). Funk, Pizzo, and Baker (2018): “while all esports are video games, not all video gaming should be classified as sport” (p. 9)..

[Audio] Updated Definition of Esports Any video game that allows for organized, multiplayer, non–geographically bound, real-time competitions with or against other players or teams, where the primary aspects of the game are facilitated by electronic systems, and the input of players and teams as well as the output of the electronic system are mediated by human–computer interfaces..

[Audio] A Brief History of Video Games and Esports Year Occurrence 1972 First organized competitive video game contest in the game Spacewar at Stanford University 1972 Atari releases console with the game Pong 1978 Atari releases Space Invaders 1980 First large-scale competition for Space Invaders with 10,000 competitors 1982 TV show Starcade (about playing video games) is broadcast 1983 Nintendo releases Famicom, AKA Nintendo Entertainment System (NES) 1986 Sega releases Master System home console 1990 Nintendo World Championships and play-in events held in 30 cities (continued).

[Audio] A Brief History of Video Games and Esports (continued) Year Occurrence 1996 Evolution Championship Series (Evo) created 1997 Cyberathlete Professional League (CPL) founded 2000 Korean e-Sports Association (KeSPA) formed 2012 Battle.net World Championship Series, featuring World of Warcraft and StarCraft II, held with international play-in events 2013 League of Legends World Championship hosted at Staples Center in Los Angeles 2015 Esports Arena, first dedicated U.S. esports facility, opens 2016 Turner Broadcasting System (TBS) begins broadcasting the ELEAGUE competition 2018 eMLS and Overwatch League begin operations.

[Audio] The Esports Ecosystem Figure 1.1. The Esports Ecosystem.

[Audio] Deconstructing the Esports Ecosystem Players Play the games and also are watched by others Teams and franchises Conglomerates of players competing in the same or different games Leagues, events, and tournaments Organized competitions among players and teams (continued).

[Audio] Deconstructing the Esports Ecosystem (continued) Game developers and publishers People and companies that build, program, develop, publish, and sell games Streaming and broadcasting services Distribution channels for esports content Investors Individuals and groups that support the ecosystem Fans and brands People and organizations that consume or leverage opportunities in the ecosystem.

[Audio] Esports Platforms Five platforms for developing esports and video games Personal computers (PCs) Mobile devices (e.g., mobile phones, tablets) Video game consoles (e.g., Microsoft Xbox, Sony PlayStation) Hybrid portable console devices (e.g., Nintendo Switch) Virtual-reality (VR), augmented-reality (AR), and mixed-reality (MR) devices.

[Audio] Types of Esports Games Eight major categories Multiplayer online battle arena (MOBA) First-person shooters (FPS) Fighting games Sports games Racing games Real-time strategy (RTS) Hybrid, card, and other games Mobile-only games.

[Audio] Esports Industry Data Sources Sources of data and esports industry statistics Newzoo Niko Partners Nielsen/SuperData Research.

[Audio] Esports Industry Statistics Frequent and occasional viewers 2012: 58 million frequent, 76 million occasional 2015: 20 million frequent, 115 occasional 2019 (projected): 201 million frequent, 253 occasional 2022 (projected): 297 million frequent, 347 occasional Past and future projected revenues 2012: $130 million; 2018: $865 million 2019: $1.096 billion; 2022: $1.79 billion in 2022 (continued).

[Audio] Esports Industry Statistics (continued) 2019 estimates of esports revenues (by segment) sponsorships: $456.7 million media rights: $251.3 million advertising: $189.2 million merchandising and ticketing: $103.7 million game publisher fees: $95.2 million (continued).

[Audio] 2019 projections for percentages of global esports market revenues for four regions of the world North America: 37% China: 19% South Korea: 6% Rest of the world: 38%.

[Audio] Chapter Summary What is esports? A brief history of video games and esports Esports ecosystem Esports platforms Types of esports games Esports industry statistics.