The global eSports market is rapidly increasing, earning revenues of USD 1.08 billion, while its Media Rights segment reached USD 207.8 million. According to Statista Research, eSports refers to organised video gaming tournaments in which professional and amateur players compete in regional and international events. Currently, plans are in place to make Olympic eSports a reality.
While China is the leading region based on earnings, eSports in Southeast Asia is also becoming prominent. The sector will receive a significant boost from the BBC News report that the International Olympic Committee (IOC) has announced a 12-year partnership with Saudi Arabia to host a standalone event. The Kingdom is already hosting the eSports World Cup (EWC), which is due to run from July 3 to August 25, 2024.
How has esports and gaming evolved in Southeast Asia over the past few years?
Becoming part of the Olympics
Alban Dechelotte, CEO of G2 Esports, told BBC Newsbeat that the IOC attended previous tournaments, with the 2022 Commonwealth Games and Asian Games hosting some events that were deemed “a success”. The officials witnessed the popularity of the new gaming sector, which had millions of viewers during its finals. They wanted Alban’s help to reach younger audiences as they sought to establish their event with equal participation of male and female gamers.
The IOC announced the inaugural Olympic eSports will take place in 2025 in Riyadh. There was a vote from the 142nd IOC session, and they voted “Yes” on including the new video gaming competition.
Before reaching this pivotal moment, an initial “Olympic eSport week” was held in Singapore in June 2023. It consisted of ten events with mixed genders. Even though IOC president Thomas Bach had said in the past that he did not see eGaming as part of the traditional Olympics, he believed that teaming up with Saudi Arabia’s NOC (National Olympic Committee) would ensure respect for the Olympic values in the new competition.
The growth of the eSports in Southeast Asia
The eSports industry in the Association of Southeast Asian Nations (ASEAN) has the COVID-19 pandemic to thank for its considerable growth. The coronavirus halted many professional sporting events, leading people to seek alternative entertainment sources. The younger and more tech-savvy generations were drawn to eGaming as individuals or in teams, while others enjoyed live streaming remote eGaming tournaments.
Statista Research reports that the industry will earn a revenue of USD 79.7 million in 2024, growing by 8.02% to reach USD 108.5 million by 2028. Its market looks likely to have a million users by 2028, with the average revenue per user (ARPU) reaching USD 93.01. Its biggest segment is Betting, with a market volume of USD 31.5 million.
The top markets in 2023 were the Philippines, with USD 22.17 million, Thailand at USD 19.68 million, Indonesia at USD 9.73 million, and Singapore at USD 8 million. Vietnam is next, with USD 5.78 million, followed by Malaysia at USD 5.31 million. Examples of leading games in the region include League of Legends and Counter-Strike: Global Offensive, whereas major events are the Free Fire World Series and The International.
Other reasons why eSports has grown in ASEAN involve the level of investment in the sector and the development of more talent. Technology also continues improving, enabling access to gaming platforms or streaming live events. Regional digitalisation ensures there are enough devices to boost accessibility for all enthusiasts.
Video games such as Arena of Valor, Counterstrike, Fortnite, and others are also popular. They are accepted by different demographics, from young to old. Connectivity has meant that people can either play the games alone or create new teams to carry out missions together.
The world of eGaming is also attracting a lot of money through sponsorship, which has led to higher payouts for tournament winners. For example, the EWC 2024 is getting increased prize money, receiving a record pool of USD 60 million.
Southeast Asia’s future position in the global eSports arena
While the region stands to benefit from including eGaming, there remain challenges in obtaining funding from the government, venture capital (VC) firms, and stakeholders. There are also concerns about the location chosen, with many commentators condemning the selection of Saudi Arabia due to its record on human rights. To further development, governments must ease restrictions on foreign workers to enable startups to hire skilled employees.
It’s important to note that women in eSports often feel neglected and diminished. They receive lower victory rewards than their male counterparts and find attending live events challenging. Despite these concerns, the concept of Olympic eSports will attract crowds and inspire people to come up with innovative solutions.
Looking at the big picture, eSports in Southeast Asia looks set to see significant revenue increases in all segments by 2028. With the right nurturing, the region could become the hub for the rest of the world, a beacon of success and growth in the global eSports industry.