Trading in eSports is a concept that might be novel to many people even today, and it comes as no surprise because the world of gaming has several such aspects that the outsiders are yet to explore. But over the past few years, the viewership of the events have increased, leading to huge investments coming in. By 2021, the viewership expected to hit somewhere around 560 million on platforms such as Twitch, NHL, and YouTube. The revenue is also, as per the forecast, expected to reach at least $2.96 billion by the end of 2021.
Venture investments in eSports have increased since 2013, and most of this is credited to the technological evolution in the field. With all of this happening, the industry is pushing itself into a new phase this decade. eSports stocks are now actively running on the investor’s radar due to this growing popularity. Since more people are looking for ways to enter this trading option, there is a high demand for the details regarding the investments in eSports. If you are planning to put some money into these game, here is a short description of the working of eSports investments.
Evolution of eSports
It was in the 1970s and 1980s that the first competitive tournaments of video games began. World top gamers were contending for the high scores in classic games such as Pac-Man and Donkey Kong. eSports became more popular by 1990s with the release of advanced games and the development of the internet. Gaming tournaments were launched after this period, and the games such as Warcraft, Quake, and Counter-Strike became the most popular ones in the competition. With the tournaments held for games like Warcraft III in the 2000s, the popularity of eSports also grew. North America started pouring out love for the tournament when ESPN hosted Madden Nation from 2005 to 2008.
Generation of Profits from eSports
eSports do not function like the traditional sports that have stadiums to host the games with huge revenue generation from ticket sales. Gaming houses around the world host the tournaments of eSports, and they have been offering the best events for gamers to thrive. Sponsorship deals generate more than 95% of the money in eSports; the rest of the money comes from regular salaries, prizes, and streaming. Everyone involved in the process earns a tremendous amount of money at each stage of the tournament. Broadcasting rights for the tournament are also being eyed by the gaming publishers these days.
Among the publicly traded eSports stocks, the ones that have become popular with their revenue generation are NVIDIA, Take-Two Interactive Software, Electronic Arts, and Activision Blizzard. When you want to invest in eSports by buying shares through a broker, you have to open a brokerage account after studying it thoroughly and checking the fees involved. You need to buy the stocks with the two different orders: market order and a limit order. Once you are done with the purchase of stocks, you need to focus on optimizing your portfolio by using the right tools.