What about esports in 2020? COVID-19 has brought a lot of change in every nook and corner of the world; abrupt social changes, lockdowns, and suspension of sports and entertainment have had influenced various industries. Esports industry is no exception; this article will analyze the impact of COVID-19 on the gaming industry and will also shed some light on the forecast.
In one of our previous articles, we discussed the cancellations and postponement of various esports tournaments which has now trickled down to Q3 and Q4 of this year. Moreover, the majority of tournaments have gone online instead of all-out cancellation for the spirit of esports but it also has its downside; cross-continental internet ping issues. Due to abrupt changes and modifications, the gaming industry is showing a weakening and nose-diving sales. The uncertainty all-around has caused companies to cut down their marketing budgets and hold on to their capitals, which in turn will have a negative effect on the start of revenue year in 2021.
These delays and cancellations have also impacted the sponsorships and media rights; the ongoing trend shows that $584.1 million and $163.3 million respectively. If the pandemic continues and lockdowns persist, it is highly likely that the downwards revisions will be made further.
Furthermore, tickets and merchandise will generate an estimated $76.2 million. And as for the global esports industry, an estimated $973.9 million this year and approximately $1194.8 million next year is on the cards. When we compare the revenues of 2020 with the previous year there is only 1.7% of rising but it is forecasted that these revenues will take a jump of 15.5% in the year 2023 and reach an estimated amount of 1,598.2M.
Though the figures this year are not promising due to the pandemic it has nothing to do with the decrease in esports demand from the audience and potential supply of content of esports; there is no shortage of e-sports organizers. Well, fingers crossed, we hope that we and the gaming industry will get out of this pandemic hale and hearty.
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