The Ongoing Expansion of Esports Arenas

As esports continues to expand across the nation and globe, demand for live competition and access to physical proving grounds is rising. All across America, new venues are popping up at a startling rate, allowing existing gamers to flex their muscles while extending the benefits of esports to the uninitiated in small towns and big cities from California to Maine. Esports arenas provide both big business and valuable educational opportunities for their surrounding communities, and these five recent developments are looking to cash in on the industry’s ever-increasing relevance. 

Chicago, Illinois

Chicago, Illinois will have its first large-scale esports arena when Surge, a $30 million, 108,000-square-foot video gaming stadium with capacity for 1,040 spectators, opens in the Near South Side Bronzeville neighborhood. 

Politicians hope that the facility, created by Smash Interactive, can push tourism further south and cultivate a safe space away from gun violence and crime. The venue will host ticketed esports events along with offering public access to recreational leagues and rented event space. 

In addition, Smash Interactive is joining forces with the nearby Illinois Institute of Technology to create the Bronzeville Esports League and expose local middle and high school students to the growing industry.

One of the biggest concerns regarding the project? There may not be enough parking space to accommodate the expected crowds. 

University of Texas

The University of Texas Longhorn Gaming team is pushing for the construction of a new esports arena on campus to cater to both competitive and casual gamers. The team has been around for 11 years and just recently became a sponsored organization at the University. Now, the goal is to repurpose 3,100-3,500 square feet of the Union Underground to hold 24 to 30 gaming stations and room for fans to watch. 

UT does not yet offer esports scholarships, but the construction of a dedicated gaming arena could shift the school’s attention towards the growing industry. With fingers crossed that this project could be completed by the end of the year, fans may soon be packing into the arena and cheering on their digital Longhorns. 

Sterling Heights, Michigan

In the Detroit suburb of Sterling Heights, Michigan, the announcement of an esports arena in the new community center has been met with significant enthusiasm. 

With the support of a recent $25,000 donation from the Christian Financial Credit Union, the arena will be outfitted with technology supporting a wide variety of video game formats. Taking over 400 square feet of the existing 1,900 square foot “Teen Room”, the venue will be outfitted with furniture and 12 computers. 

“It’s important for parks and recreation departments to understand what trends are going on in the industry,” Sterling Heights Parks and Recreation Director Kyle Langlois said. “Parks and Rec often gets caught up on the physical fitness side, which is very important. But there is a whole demographic of kids who don’t play sports and have no interest in playing sports.”

The arena is expected to open after Labor Day Weekend. 

Houston, Texas

Belong Gaming Arenas, a subsidiary of esports infrastructure platform Vindex, is nearly finished with construction on its first U.S. gaming center, which is located in Houston. 

Vindex has ambitious plans in the U.S., dedicating $300 million to open gaming centers where gamers can hang out and attend events featuring esports stars. The centers will be integrated both physically and digitally to accommodate a variety of gaming appetites, from casual players to aspiring professionals. Belong will equip the arenas with top-of-the-line products through national partnerships with PlayStation, Omen by HP, Viewsonic, Mavix, and other premier gaming companies.

The United Kingdom-based Belong Gaming Arenas has already opened 25 locations in the U.K., with venues in Dallas, Columbus, Chicago, and Nashville to follow throughout the summer. In total, the company plans to establish 500 gaming centers in the U.S. over the next five years.

Kansas City, Missouri

The LEVELUP esports arena in Kansas City offers up a 15,000 square foot facility equipped with 100 gaming computers and consoles. The location first opened in April but is only now able to fulfill its promise with 100% capacity. 

LEVELUP’s tremendous size makes it the third-largest esports arena in the nation, and it stands out from the pack by offering a dedicated education program. A key focus of the space will be educating K-12 students on the potential benefits and careers within esports, whether that be a League of Legends college scholarship or a job as a professional Fortnite streamer. 

The location plans to offer a wide variety of titles to play, catering to both hardcore and casual gamers. With an attached bar, music venue, and restaurant, LEVELUP truly is the place to be for gamers in the City of Fountains. 

Six Games Leading the Growth of Mobile Esports

In mobile esports, players use a mobile device like a tablet or a phone instead of a console or PC. This style of gaming increases player base access across the globe, and recent technological advancements, such as the proliferation of 5G internet, have made gaming on a handheld device a legitimate option for esports players and fans. For example, the ESL recently announced a mobile league covering North America, Europe/MENA, and Asia-Pacific. In China, mobile gaming makes up over half of all esports in the country. 

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As this wave of growth sweeps across the gaming landscape, mobile publishers are investing more time, money, and energy into making sure their games have the healthy esports ecosystems required to drive continued interest and revenue long after an initial release date. So, which titles stand above the rest and appear poised to dominate esports in the near future? 

PUBG Mobile is the mobile version of PlayerUnknown’s Battlegrounds, the popular online multiplayer game that was the first to introduce players to the battle royale format back in 2016. Despite heavy competition and many newcomers in the space, PUBG Mobile remains the most popular mobile battle royale. Available on Android and iOS, PUBG Mobile has been downloaded over 730 million times. PUBG Mobile was one of the highest-grossing games in 2020, generating more than $2.6 billion in revenue. At its peak, the game was bringing in more than $270 million per month.

The game’s tournaments boast considerable amounts of prize money, with more than $14 million up for grabs in PUBG Mobile tournaments this year. Competitions for PUBG Mobile take place in 12 different regions around the world, with the best players from each region advancing to compete in a worldwide tournament this summer.

Call of Duty Mobile  While the Call of Duty League on console and PC may be the most recognizable competition for the COD franchise, Call of Duty Mobile has quietly built up an impressive audience over the last several years. Available on Android and iOS, the game produced one of the largest mobile game launches in history by generating over $480 million in revenue and 270 million downloads in its first year.

The competitive scene for the game has grown rapidly, with more than $2 million up for grabs at this year’s Call of Duty: Mobile World Championship in June. The Championship, which is presented by Sony, will be open to players across the world. Players who meet the minimum ranked criteria can participate in events and qualify for the regional stages. Sony’s newest flagship smartphone, Xperia 1 III, will be the official mobile device of the event. The tournament will be live-streamed on the COD Mobile Esports YouTube channel.

Arena of Valor  Arena of Valor is a 5v5 multiplayer online battle arena (MOBA) designed by Tencent Games and available to users on Android, iOS, and Nintendo Switch. In 2020, the game recorded over 100 million daily users. The Arena of Valor International Championship (AIC), Arena of Valor’s biggest tournament, recorded more than 109 million total views last year. The event was live-streamed to fans worldwide through various streaming platforms including YouTube, Facebook, and Valor TV, and commentary was provided in five different languages. AIC 2020 was recognized by YouTube as one of the most-watched live gaming events of 2020 globally, reinforcing Arena of Valor’s position as one of the top competitive mobile games.

Garena Free Fire is a mobile title published by Singapore-based Garena in the wildly popular battle royale genre, with up to 50 players dropping into a battleground and fighting until only one champion remains. The title’s broad appeal made it the most downloaded game globally in 2019. In May of 2020, Free Fire was averaging 80 million daily players and has grossed over $1 billion within a free-to-play format. 

Piggybacking off this success, the game has wholeheartedly embraced esports, with Garena launching the Free Fire World Series (FFWS) and Free Fire All-Stars competitions. Viewership numbers are staggering across the globe with Brazilian competition in January peaking at 449,565 viewers and Asian Free Fire audiences averaging 828,986 concurrent viewers. Garena has announced plans to release an enhanced version of the game titled Free Fire Max. 

Mobile Legends: Bang Bang or MLBB is a mobile massive online battle arena title developed by Montoon which pits two teams of players, each player controlling a single unique character, against each other on the battlefield in a game of base defense and attack. First released in 2016, the title has seen incredible popularity in Southeast Asia, even being chosen for the first medal event esports competition at the 2019 Southeast Asian Games in the Philippines.

The game hosts the annual Mobile Legends: Bang Bang Southeast Asian Competition and more localized leagues such as the Mobile Legends: Bang Bang Professional League. In 2019, the first Mobile Legends: Bang Bang World Championship took place, with 16 teams fighting for a prize pool of $250,000. 

Hearthstone is a free-to-play mobile online collectible card game created by Blizzard Entertainment and first released in 2014. Building off the success and established base of the Warcraft series, this title borrows the same universe to offer a turn-based, two-person game using decks of 30 cards and an additional selected hero with unique powers. 

The title earns nearly $40 million per month and has long surpassed the 100 million player mark. The game supports a thriving esports ecosystem with an annual Hearthstone World Championship and a Hearthstone World Tour featuring four three-month seasons and over $1 million in prize money. The 2020 Hearthstone World Champion winner, Kenta “Glory” Sato, took home $200,000.

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Esports Explained: Twitch

In this series by KemperLesnik, we will be exploring and defining popular esports terms and games. This article covers Twitch, a popular live streaming service for gamers.

In the world of esports, content distribution is just as important as the content itself. Without distribution, creators would spend their time making content just to have it seen by no one. That’s where a platform like Twitch comes in to play.

Launched in 2011, Twitch is a live streaming service designed primarily for gamers. Twitch users can watch other people playing video games or live stream their own gameplay to an audience made up of other users. Twitch users can also follow and DM (Direct Message) each other, and each stream has its own unique chatroom where users can connect and discuss what’s happening on the stream.

Many different games are streamed on the Twitch platform. The most-watched games on the platform include Grand Theft Auto, League of Legends, Fortnite, Call of Duty, Minecraft, Counter-Strike, and Dota 2. It has also been used to host interviews and conversations, and to play non-traditional video games such as chess.

In 2014, Amazon acquired the streaming service for $970 million. At the time, it was the biggest acquisition in Amazon’s history. As part of the agreement, Amazon created a service called Twitch Prime, which was eventually rebranded to Prime Gaming. Prime Gaming is included with all Amazon Prime subscriptions and provides users with free games, free Twitch channel subscriptions, and exclusive in-game loot.

Similar to YouTube, Twitch makes money from advertisements that are integrated into live streams; it also makes money from paid subscriptions to popular channels. Twitch streamers have the potential to earn money through these subscriptions and through brand partnerships. Currently, the most popular streamer on Twitch is Ludwig Ahgren, who has more than 225,000 active subscribers. Another popular streamer, Tyler “Ninja” Blevins, allegedly made more than $75,000 per month on Twitch when his channel was at its peak.

Twitch can be watched on the official website and through the Twitch app on most mobile devices. Users also have the ability to stream Twitch on any major gaming platform. To stream on Twitch, creators can get started with nothing more than a webcam and a microphone.

As of this year, Twitch has more than 9.7 million unique creators on the platform. During peak hours, Twitch accounts for nearly 2% of all internet traffic and more than 40% of all video streaming. In March alone, users watched more than 2.1 billion hours of content on Twitch. The platform has more than 140 monthly active users (MAUs) and continues to grow at a strong pace.

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Five Schools Leading the Way for Collegiate Esports

With each passing year, esports becomes a larger part of the college sports landscape. In 2018, there were only 70 full-time collegiate esports programs in the country. By 2020, that number had ballooned to 170, with more schools joining in every month.

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Similarly, in the 2015-16 academic year, esports scholarships totaled $2.5 million nationally. By 2019, national scholarship dollars were up to $15 million, a 600% increase. As schools across the country focus on expanding their programs and enticing top recruits, a battle is playing out for who can offer, and deliver, the most to potential players. 

Here are five schools that are leading the way for collegiate esports when it comes to competition, facilities, and educational opportunities for student-athletes.

 

  • Maryville University- For fans of college esports, it should come as no surprise that Maryville University in Saint Louis is at the top of this list. After starting their program in 2015, Maryville made a name for themselves after going 40-0 and winning the 2016 League of Legends Championship. They won the same championship again in 2017 and 2020. The school has a state-of-the-art practice facility for their team that includes high-speed computers, high-end gaming headsets, and gaming chairs, creating an environment where the team can practice without any distractions. The school offers gaming scholarships up to $2,000 per year and hopes to continue to improve its offerings moving forward.

 

  • The University of California at Irvine- UC Irvine was the first public school to create a varsity esports team. Their campus features one of the most extravagant esports facilities in the country, housing over 70 high-speed computers and a large arena to host games and tournaments. Also included in the facility is a “Console and Community Corner” that features several gaming consoles where players can compete with or against each other, making the facility appealing to more than just PC gamers. The school focuses primarily on League of Legends and Overwatch, offering scholarships of up to $5,610 per year for varsity players in each game.

 

  • Miami University (Ohio)- Miami University in Oxford, Ohio is known for becoming the nation’s first Division 1 varsity esports program after creating their varsity program in 2015. In 2016, the school started offering varsity esports scholarships for student-athletes, competing primarily in Overwatch, Rocket League, and Hearthstone. The school developed an arena for the esports program on the first floor of the campus library, which features 16 gaming stations that each include a gaming computer that possesses a high-end graphics card and monitor. The university also offers summer esports camps where students can visit campus to compete in tournaments and train like varsity esports athletes.

 

  • Boise State University- Boise State created its esports program in 2017. Originally focusing on Rocket League, Overwatch, and League of Legends, the program has since expanded to include Heroes of the Storm and Hearthstone. The tryout process for the BSU varsity team is extensive, taking up a full week at the start of the school year. Players on the team are required to maintain a minimum GPA of 3.0, well above the standard requirement for student-athletes. The Broncos’ home arena includes several impressive amenities such as a broadcasting section, a graphics and technical mixing area, and a two-tiered stage with a large spectating area.

 

  • University of Utah- The University of Utah is new to the competitive gaming scene, starting its program in 2017. However, the school has some of the most expansive gaming offerings outside of the competitive scene, including a game development program that has been offered since 2007 and an undergraduate degree in gaming that was started in 2017. The university has a gaming facility that is stocked with 20 gaming computers and top-notch keyboards, headsets, and gaming mice. Utah brands itself as “Gamer U,” with more than 200 students trying out for 30 spots on the school’s varsity Overwatch, League of Legends, and Hearthstone teams.

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Four Technologies That Will Define the Future of Gaming

Speed is the name of the game. As technology evolves so does the esports industry. Here are four technologies influencing the future of gaming.

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Augmented Reality – Augmented reality (AR) is defined as “a technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view.” AR has already hit mainstream gaming culture, most notably in the summer of 2016 when Pokémon GO had endless waves of gamers wandering the streets in search of their elusive prey. Now, Nintendo is looking to double down on its investment in AR technology.

The gaming giant has etched a new deal with Niantic, the creators of Pokémon GO, to develop AR games based on Nintendo franchises. The first of which will “encourage walking in a way that will combine elements from the Pikmin games and Niantic’s real-world AR technology.” Nintendo is known for pushing the technological envelope and this new deal ensures that AR won’t simply be a forgotten fad, but a legitimate player in the future of gaming.

Virtual Reality – Virtual Reality (VR) refers to a computer-generated simulation where a person can interact with an artificial environment. VR has been involved in gaming since the late 1960s in some capacity, but recent hardware innovations have made advanced VR systems available to consumers at an affordable price point. As the technology continues to improve, VR will allow developers to create gaming experiences unlike anything the industry has ever seen, dropping players directly into fictional universes that are essentially indistinguishable from reality.

Widespread adoption of VR will also enable developers to create their own “metaverses,” which are shared virtual spaces hosted within a game. These metaverses will allow users to connect and interact with each other virtually while remaining in the comfort of their own homes (or wherever they may be connected), ultimately making gaming a more social experience.

5G – 5G is the fifth generation of technology for broadband cellular networks, which began deploying worldwide in 2019. 5G offers up to 10 times the speed currently offered by 4G LTE, allowing players to stream and download games like never before. This will enable more people to play games directly from the cloud, eliminating the need to download games to a device. The biggest impact of this technology will likely come from the improved latency that 5G enables. With response times as low as five milliseconds, gamers can expect to play on the network without suffering any lag between user input and the game’s response.

The technology is already being used to hold esports competitions, with the finals of Asphalt 9: Legends and PlayerUnknown’s Battlegrounds during this year’s Milan Games week both being hosted on Vodaphone Italy’s 5G network. As the technology continues to roll out across the globe, we can expect this trend to become more widespread, allowing gaming competitions to take place from wherever there’s a mobile network available.

Next Gen Consoles – While getting your hands on a PS5 or Xbox Series X may seem impossible, the next gen consoles are set to have a significant impact on esports in the coming year. Most obviously, the increased computing power from these consoles allows for games to stably run at a minimum of 60 FPS, something current iterations often cannot run. This eliminates some of the advantages PCs long held over consoles and makes the PS5 and Xbox Series X more viable options for a competitive gaming scene that relies on split second accuracy and smooth uninterrupted frame rates. In addition, Microsoft and 343 Industries have promised an expansive esports ecosystem in the upcoming Xbox title Halo: Infinite and Playstation just purchased the Evo Fighting Game Championship Series, indicating both console creators are committed to fostering competitive gaming on their platforms.

While it’s extremely unlikely these consoles will take over the esports realm, the lineup of next gen consoles are closer to PCs than ever before. This means more people will have access to esports capable machines, which could create a rise in demand and interest for the growing industry across all platforms.

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The Intersection of Esports Tournaments and Traditional Sports

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Esports tournaments, and the larger gaming community, continue to present brands with a significant opportunity to reach, engage, and create a sustainable relationship with an otherwise hard to reach audience. We are witnessing a significant increase in sponsorship spending and we are welcoming more non-endemic brands into the esports ecosystem.

But will this shift come at the expense of traditional sports spending? Or will esports continue to gain share as a crucial component of a brand’s sports sponsorship portfolio? Whatever the outcome, we as an agency are excited to see the line between the two continue to blur.

The Production of Esports Events

I recently spoke at the Inven Global Esports Conference on the intersection of esports and traditional sports. Having come up in the world of sports marketing and broadcast production and recently helped launch KemperLesnik’s esports practice, I noted the high quality of esports tournaments. Producers have combined the very best elements of sports productions with big show entertainment value that captivates audiences both online and onsite.

Impressive as well has been the ability of esports tournament organizers to produce multiple game titles at a consistently high level. Companies such as Estars Studios have built their expertise in esports production through Emmy award-winning sports producers working side by side with a team of game specific experts which has proven to be a winning combination.

While esports tournaments have borrowed several best practices from sports broadcasts even in their infancy, esports has a huge head start on the sports world in one key area: audience. Born in the digital age and raised by a cord-cutting generation, esports has proven that linear TV is not necessary for their growth.

Reaching the Esports Audience

Even with the recent ABC/ESPN agreement with OWL, national broadcast and cable distribution will help build awareness and gain mainstream acceptance for esports but it is not critical for their success. Eighty percent of esports is watched digitally as opposed to only 20% of traditional sports (Goldman Sachs).

The vast majority of esports fans do not watch TV and they represent the youngest audience in all of sports. This not only creates a great opportunity for brands that want to reach a younger audience but for sports properties which want to groom and engage the next generation of their fans.

Whether it’s NBA 2K or other league or established sports properties creating esports partnerships, gaming will become a major tactic for traditional sports to reach and engage this young, digitally savvy consumer.

 

Esports Tournaments and the Fight Card System

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Esports tournament organizers and brands are scrambling to find the best way to monetize and broadcast esports competition. Some tournaments, such as the League of Legends LCS and Overwatch’s Overwatch League (OWL) used a franchised system of competition. This creates consistent, predictable matches every week, culminating in playoffs that will see an uptick in viewership.

Other games, most notably Counter Strike: Global Offensive (CSGO), and DOTA 2, use a circuit point system similar to that seen in tennis, where smaller tournaments give teams a chance to accrue enough points to get invited to large, global events. Since these competitions happen less often, this provides an opportunity for brands to hit a larger audience over a few specific events, as opposed to smaller, albeit more consistent, viewership in franchised leagues.

A more unique system of competition popularized by professional wrestling is known as the fight card system, where tournaments revolve around the winner of the previous tournament returning to defend their title against a new set of challengers. Not typically seen in esports tournaments, this fight card competition is being used by WSOE, otherwise known as the World Showdown of Esports.

Benefits of the Fight Card System

A returning esports tournament champion defending their title provides an inherent storyline to a competition. As an example, at WSOE 5, Hearthstone player Jia returned to Las Vegas at a chance to earn $15,000 and preserve her reputation as one of the best Hearthstone players in the world.

As many of the players competing at WSOE 5 also competed in WSOE 2, the previous Hearthstone tournament organized by WSOE, this also offers the opportunity for redemption arcs for players. Fight card competition in esports tournaments creates inherent storylines as strong as those in professional wrestling and is an opportunity for brands to get involved with engaging esports storylines.

WSOE’s fight card system also provides them with competitive flexibility. Not only can WSOE decide which game will be the focus of each tournament (they’ve hosted tournaments in Fortnite, Rocket League, DOTA 2, and Hearthstone), but the competitors of each tournament can be selected based on availability and popularity. Thanks to the transient nature of esports, certain games, players, and esports teams may be popular one month, but be old news the next. Flexibility in esports tournaments allows WSOE to stay on the cutting edge of esports, and provide partners with the most current esports experiences.

Esports Tournaments in the Years Ahead

As money pours into esports, some companies and brands are doubling down on certain esports, such as League of Legends and Overwatch. These franchised leagues surely bring great value to their partners, but come at a great cost – buying into the latest season of the Overwatch League was rumored to cost as high as $60 million. Such a high cost would suggest it’s also quite expensive to partner with a team.

Considering how transient esports viewership is, with many spectators quickly jumping to different flavor of the month titles, makes it hard for brands to take the plunge into esports partnerships, despite viewership for some events reaching as high as 200 million viewers.

 

There is an opportunity for brands that want more flexibility in their partnerships, and the fight card format allows for this flexibility, along with an opportunity for more storylines. WSOE 6, which was held this past April, focused on DOTA 2, and hit over 50,000 viewers during key matches.

(Source: SullyGnome.com)

In the future, we will likely see more esports tournaments adopt the fight card system, as it allows the flexibility and storylines that viewers, brands, and tournament organizers all want, without the steep investment of other esports events.